{"id":2829,"date":"2018-03-20T13:08:02","date_gmt":"2018-03-20T13:08:02","guid":{"rendered":"http:\/\/localhost\/outsourcinghubindia\/?p=2829"},"modified":"2024-05-01T11:21:11","modified_gmt":"2024-05-01T11:21:11","slug":"top-6-tips-for-cam-reconciliation","status":"publish","type":"post","link":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/top-6-tips-for-cam-reconciliation\/","title":{"rendered":"Top 6 Tips for CAM Reconciliation"},"content":{"rendered":"

Common Area Maintenance (CAM) reconciliations can prove to be nerve-straining for you as property owner or manager if done erratically.\u00a0We know how real estate accounting<\/strong> can turn out to be a tricky task if not religiously done on time. To steer clear of any inconveniences or error potential, we have always adhered to certain rules for CAM reconciliation<\/strong>. These tips would prove to be of real help when collating bills and finalizing accounts.<\/span><\/p>\n

Tip 1: Ensure Timely Submission of Payments by Tenants<\/strong><\/span><\/h3>\n

It may sound hackneyed, but most of the discrepancies in CAM charges show up due to a late receipt of invoices by your tenants. You need to follow-up with your property manager to ensure that payment against all CAM invoices is done within the time for avoiding any year-end hassle. It would also help in counter-checking if all components of CAM have been captured.<\/span><\/p>\n

Tip 2: Always Collect the Interest Due on Amortization Amount<\/strong><\/span><\/h3>\n

A few of our real estate clients\u00a0have entered into an agreement with\u00a0the tenants that stipulates payment of interest due on the annual amortized value of the capital cost of\u00a0the property. The interest would be payable for the tenure of the lease.\u00a0They\u00a0make it a point to collect the amortized value as well as the interest accrued from\u00a0the tenants. If you have also made a similar arrangement, never overlook the interest component while reconciling.<\/span><\/p>\n

Tip 3: Collect the Property Management Fee if you Have Hired a Professional Agency<\/strong><\/span><\/h3>\n

If you have sought the services of a professional property management firm<\/strong> to look after your leased out area, always make it a point to collect the management fee from the tenants. Normally, this fee would be in the range of 3-4% of the lease charge. However, it would be unwise to waive off the fee just to keep the tenant happy. Avoid your accounting calculations from going haywire by collecting the stipulated fee.<\/span><\/p>\n

Tip 4: Clearly Figure out the Expenses that are Occupancy Related<\/strong><\/span><\/h3>\n

Irrespective of whether your property experiences full or partial occupancy, you need to levy certain charges on tenants considering that the occupancy was full. For annual property accounting<\/strong>, services related to janitor, electricity, water, etc. can be applied on CAM for existing tenants. You can exempt expenses incurred for luxury or redundant services like gardening, etc. from the CAM fees of tenants.<\/span><\/p>\n

Tip 5: Ensure the Validity of Calculations<\/strong><\/span><\/h3>\n

Once all the lease related expenses are calculated, apportion the CAM charges<\/strong> to tenants based on the \u2018Gross Leasable Area\u2019 occupied by each.\u00a0Ensure that the accountant always counter check the calculations a number of times to figure out any inadvertent error. This ensures that\u00a0the owner\/firm is relieved of any dispute after the presentation of bills. Proper CAM accounting is critical.<\/span><\/p>\n

Tip 6: Maintain All Audit-prone Records Carefully<\/strong><\/span><\/h3>\n

To escape from any protracted dispute over CAM reconciled reports, ensure that the details of costs charged, distribution ratios, and other relevant expenses are properly documented. Often industrial clients may demand an audit of the CAM charges and if you fail to produce tenable records, you can invite legal troubles.<\/span><\/p>\n

Follow these simple tips\u00a0to sit back and enjoy the revenue generated from\u00a0your\u00a0property. Hope you can have a breezy life with proper CAM reconciliations<\/strong>.<\/span><\/p>\n

About<\/em><\/strong><\/span><\/h3>\n

OHI<\/a> is a thirteen-year-old real estate services company working with 50+ commercial and residential real estate developers, funds and property management companies across USA. Our deep expertise in real estate accounting, financial analysis, lease administration and asset management has helped clients cut associated costs by 40-50%. We currently provide these services to a portfolio of 75000 units across clients.<\/span><\/p>\n

We invite you to experience leasing and accounting outsourcing through us.<\/span><\/p>\n

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Learn More About Our CAM Reconciliation Services: <\/b>CAM Reconciliation | Lease Administration | Lease Audit | Lease Abstraction – VIEW MORE<\/strong><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Common Area Maintenance (CAM) reconciliations can prove to be nerve-straining for you as property owner or manager if done erratically.\u00a0We know how real estate accounting can turn out to be a tricky task if not religiously done on time. To […]<\/p>\n","protected":false},"author":2,"featured_media":5288,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[693],"tags":[32,91,105,167,168,169],"class_list":["post-2829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cam-reconciliation","tag-real-estate-accounting","tag-property-accounting","tag-property-management-firm","tag-cam-accounting","tag-cam-charges","tag-cam-reconciliation"],"_links":{"self":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/2829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/comments?post=2829"}],"version-history":[{"count":1,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/2829\/revisions"}],"predecessor-version":[{"id":11543,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/2829\/revisions\/11543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/media\/5288"}],"wp:attachment":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/media?parent=2829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/categories?post=2829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/tags?post=2829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}