If CAM reconciliation is among your least-favorite tasks as a property owner or manager, you’re not alone. Common Area Maintenance (CAM) reconciliation is essential, but it can also be stressful and confusing.
The risks of over-calculation and under-calculation are real. With that in mind, here are some tips for accurate, hassle-free CAM reconciliation.
1. Carefully maintain records.
The easiest way to cut down on CAM-related stress is to ensure accurate accounting and records throughout the year. Keep all details in one centralized location. This includes operating expenses, costs charged, distribution ratios and other relevant records. With careful documentation, you can promptly produce records if anyone demands an audit. STRATAFOLIO has a thoughtfully designed database to store all of your records, track upcoming expiration dates, and even Certificates of Insurance.
2. Make sure your tenants are paying on time.
Sometimes, CAM reconciliation errors occur due to late payments from tenants. Sending out invoices and reminders on time each month can help with this. It also helps if you can enable automatic payments, which will greatly reduce the occurrence of late payments. Among the growing number of alerts STRATAFOLIO offers, you can set up lease escalation and expiration reminders so you know well ahead of time and can take action with your tenants.
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3. Perform CAM reconciliations every year, at minimum.
If you didn’t perform CAM reconciliations for the last year or two, it’ll be far more difficult to evaluate CAM for the next year. It will also make it difficult if you decide to sell the property, as buyers will want to see up-to-date finances. One of the most frequent things we hear from our customers is how much time we save them in CAM reconciliation. Our powerful commercial real estate software can complete your CAM reconciliation in just three clicks.
4. Don’t forget about tenant-specific exclusions and exempt expenses.
If you’ve agreed to exclusions for any of your tenants, make sure they are formally added to the lease and reflected in your CAM charges. The same goes for any expenses that may be exempt from CAM fees. This will reduce the risk of errors and disputes.
5. Use STRATAFOLIO to complete CAM reconciliation in just 3 clicks.
STRATAFOLIO enables commercial real estate owners to automate CAM reconciliation and other essential tasks. At a glance, you can view your annual budget, current expenses, and each tenant’s responsibility for those expenses to date.
Using STRATAFOLIO, you can reconcile anytime, anywhere. This will give you an accurate view of your finances throughout the year and eliminate the risk of under or over-calculation at year end. This online platform makes it easier to organize your records, automate invoicing, and keep track of who owes how much. As a result, you can calculate accurate charges with ease.
If you’d like to learn more about how STRATAFOLIO connects to QuickBooks and helps you manage your finances, operations and more, contact us today! We’ll be happy to schedule a 1:1 demo and answer any questions you may have about CAM reconciliation.
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