How is CAM calculated?
How Is CAM Determined? Owners calculate the total common area maintenance charge by adding up all the charges delineated in your lease as part and parcel of the “CAM” expenses for the building, their property taxes, and insurance.
Introduction
Real estate is a great way to make money, but it can be tricky to understand the jargon associated with it. One of the most important terms to understand is CAM, which stands for Common Area Maintenance. This article will explain what CAM means and how it applies to real estate.
What Is CAM?
CAM stands for Common Area Maintenance. It is a type of fee that is paid by tenants in a commercial property to cover the costs of upkeep and maintenance of common areas, such as lobbies, hallways, and restrooms. The fee is typically calculated as a percentage of the tenant’s rent or as a flat fee.
Why Is CAM Important?
CAM is an important part of real estate investing because it helps landlords recoup the costs of maintaining common areas. Without CAM, landlords would have to absorb the costs of maintenance and upkeep themselves, which could make their investments less profitable. By charging tenants a CAM fee, landlords can ensure that their investments remain profitable.
How Is CAM Calculated?
CAM fees are typically calculated as a percentage of the tenant’s rent or as a flat fee. The amount of the fee will depend on the type of property and its location. For example, a building in a high-traffic area may require more frequent maintenance and thus may have a higher CAM fee than one in a less-trafficked area.
FAQ
Q: What is CAM?
A: CAM stands for Common Area Maintenance. It is a type of fee that is paid by tenants in a commercial property to cover the costs of upkeep and maintenance of common areas, such as lobbies, hallways, and restrooms.
Q: Why is CAM important?
A: CAM is an important part of real estate investing because it helps landlords recoup the costs of maintaining common areas. Without CAM, landlords would have to absorb the costs of maintenance and upkeep themselves, which could make their investments less profitable.
Q: How is CAM calculated?
A: CAM fees are typically calculated as a percentage of the tenant’s rent or as a flat fee. The amount of the fee will depend on the type of property and its location.
Conclusion
CAM is an important term to understand when investing in real estate. It stands for Common Area Maintenance and is typically calculated as a percentage of the tenant’s rent or as a flat fee. CAM fees help landlords recoup the costs of maintaining common areas, which helps make their investments more profitable.