Lease Audit/CAM Audit

CAM Audits (Common Area Maintenance) refer to the expenses that a landlord incurs in connection with the common areas of a property. In the context of CAM analysis or a CAM audit, the term is used more liberally to refer to the full scope of expenses that a landlord incurs in connection with a property that is passed through to a tenant.

More often than not, tenant's audit bills have not been accurately calculated. For this reason, it makes financial sense for tenants to have their CAM audited as significant savings can be realized. LeaseProbe will perform a desktop audit and review the tenant's operating expenses, CAM audit, taxes and insurance. These desktop audits often uncover errors that can result in significant savings to the tenant. LeaseProbe’s team of experienced attorneys and accountants can directly negotiate with the landlord, assertively seeking the appropriate refund amount while being ever mindful of the importance of the landlord/tenant relationship.

CAM Audit Methodology

When Lease Probe conducts a CAM audit, every expense that a landlord passes through to a tenant is reviewed. Included are all common area pass-through expenses such as cleaning, security, maintenance, etc, as well as general pass-through expenses such as utilities, capital expenses, real estate tax and insurance. LeaseProbe’s CAM audit analysis accurately quantifies the amount of money that a landlord may pass through to a tenant by thoroughly examining the six points which define reimbursement responsibility

1

Identify

the landlord’s expenses for which the tenant has a reimbursement responsibility, through a diligent lease review.
2

Verify

the accuracy and appropriateness of the dollar amounts for each such expense through a careful review of the landlord’s expenses.
3

Ascertain

the appropriate amortization schedule for capital expenses.
4

Calculate

the grossed-up expense amounts where applicable.
4

Define

the tenant's accurate share of responsibility towards expenses (i.e. pro rata share, or other lease defined apportion).
4

Apply

base year and increase caps to the tenant's obligation where applicable.