STRATAFOLIO can enter caps on operating expenses, so your CAM Reconciliation Report will contain those caps either by an amount or by a percentage. For more information on operating expense caps, check out this article on understanding the different types of CAM caps. You can increase the caps by a percentage over the previous year, by a set amount, or by a percentage over a given value.
How to add Operating Expense Caps
Navigate to the Leases view from the left-side navigation menu. Select the “i” icon of the lease to open the Lease Abstract.
Select the OpEx tab from the top of the page. You can add a cap to the Subcategory on the Invoice view from here. Do this by clicking on the green “+” button to expand the view of the OpEx period you are going to edit and the pencil icon beside the category. This will open the Operating Expense form where you can add in the caps. Simply select the button confirming that there is a cap to reveal the fields for making the necessary edits.
Adding a cap creates an additional column and calculation in STRATAFOLIO’s CAM Reconciliation Report. If the “Building Actual Expenses” column multiplied by the “Tenant Share of Building” (or Pro-Rata Share) exceeds the amount in the “Not to Exceed per Period” column, the “Not to Exceed per Period” amount (or cap) will appear in the “Tenant Total Portion” column.
When you use the cloning feature, it carries over caps to the next year to prevent overcharging tenants for operating expenses.
For any other special circumstances around CAM and Operating Expenses, feel free to check out other Knowledge Base articles. STRATAFOLIO’s Onboarding and Support Team is also available if you have any out-of-the-box scenarios regarding operating expense caps.
