When renting warehouse space, one term you may encounter is Common Area Maintenance, also known as CAM charges. Common Area Maintenance refers to the fees that commercial property owners charge tenants to cover the costs of maintaining and repairing common areas of the property, such as hallways, parking lots, and lobbies. Here’s what you need to know about Common Area Maintenance and why renters should be aware of it:
What is Common Area Maintenance?
Common Area Maintenance is a fee that commercial property owners charge tenants to cover the cost of maintaining and repairing common areas of the property. These areas are shared by all tenants and typically include hallways, elevators, lobbies, restrooms, and parking lots. The fees collected from CAM charges go towards the costs of maintenance, repair, and upkeep of these areas.
Why are CAM charges important to renters?
CAM charges are important to renters because they can significantly impact the overall cost of renting commercial warehouse space. When considering a lease, tenants should always inquire about the CAM charges and factor them into their budget. It’s important to note that CAM charges are usually in addition to the base rent and any other fees outlined in the lease agreement.
Common Area Maintenance fees can vary widely depending on the property and the level of maintenance required. The fees are usually calculated based on the percentage of the total rentable square footage of the property that the tenant occupies. The property owner may also adjust the fees based on the level of maintenance required or the overall expenses of the property.
When signing a lease agreement, tenants should carefully review the language regarding CAM charges to ensure they understand what is included and what is not. For example, some landlords may include additional expenses in CAM charges, such as taxes or insurance, while others may exclude these costs. It’s important to clarify any questions or concerns regarding CAM charges with the landlord or leasing agent before signing the lease.
How to protect yourself from unexpected CAM charges
To protect yourself from unexpected CAM charges, it’s important to thoroughly review the lease agreement before signing. Ask for a breakdown of the fees and what is included in the CAM charges, so you have a clear understanding of the total cost of renting the space.
In addition, tenants should keep accurate records of any CAM charges paid and request a detailed report of the expenses covered by the fees. This can help identify any discrepancies in charges or identify areas where costs could be reduced in the future.
Conclusion
Common Area Maintenance charges are an important consideration for tenants when renting commercial warehouse space. By understanding the fees and how they are calculated, tenants can make informed decisions about which space is the best fit for their business needs. Thoroughly reviewing the lease agreement and keeping accurate records of CAM charges can help protect renters from unexpected expenses and ensure a smooth leasing experience.
