CAM Charges Explained — What Tenants Should Expect and What Owners Can Improve

Demystifying CAM

Common Area Maintenance (CAM) charges are a defining feature of commercial leases—and often, one of the most misunderstood. These shared expenses cover everything that keeps a property functioning: landscaping, snow removal, lighting, signage, cleaning, and repairs. Done right, CAM is a tool for fairness and transparency; done poorly, it breeds confusion and mistrust.

The Tenant’s View

Tenants want predictability. When CAM statements arrive without context or explanation, frustration builds. Clear reporting—detailing what each charge covers—helps tenants understand where their money goes. A well-structured CAM program demonstrates professionalism, showing that management isn’t cutting corners or padding numbers but genuinely investing in the upkeep that benefits everyone.

The Owner’s Role in Efficiency

Owners who treat CAM as a management opportunity rather than an administrative chore can enhance profitability while improving tenant satisfaction. Regularly auditing vendor contracts, negotiating competitive service rates, and using technology to track expenses all contribute to cost control. Upgrading to LED lighting, automating irrigation, or improving waste management can significantly lower shared costs, producing savings tenants can see.

Shared Value and Shared Responsibility

A strong CAM structure aligns landlord and tenant interests. Clean, safe, and well-maintained common areas drive customer traffic and extend property lifespan. While tenants share these costs, they also share the rewards: higher sales, more foot traffic, and an improved reputation for the entire center.

Communication Is the Equalizer

The best owners don’t wait until year-end reconciliations to communicate. They provide quarterly updates, outline improvements, and explain budget changes before invoices arrive. Transparency eliminates surprises and keeps everyone on the same team.

Connecting It Back to Milbrook Properties

Milbrook Properties emphasizes communication and accountability in every aspect of property management, including CAM. By managing expenses efficiently, maintaining top-quality service, and sharing information openly with tenants, Milbrook demonstrates how responsible ownership builds trust, supports operations, and sustains long-term property success.