In the world outside of commercial real estate (CRE), a “cam” can be a reference to either a device that takes photographs, a part of an internal combustion engine or a certain professional football quarterback. But it means something else in CRE, which loves its acronyms.
To avoid headaches like overcharges, angry tenants and vacancy risks, it’s important to perform CAM audits regularly (especially if you invest in retail properties).
CAM audits: what CRE pros need to know:
What Are CAM Audits?
If you’re not familiar, “CAM” stands for common area maintenance. Like the name implies, CAM audits involve items and areas that, well, commonly need maintenance. Think parking lots, waste storage units, security rooms, signage, utilities, landscaping and more. These come into play if there is a CAM provision on the contract requiring the tenant to pay their fair share of related expenses. To fairly identify needs, costs and financial responsibilities, a CAM audit will provide an objective viewpoint on what is needed.
CAM Audit Benefits
As a tenant right, a CAM audit may be required on your part. But that doesn’t mean it’s only a benefit for the tenant. You actually enjoy several benefits as an investor or owner whenever a CAM audit is performed. These include:
- You can avoid overpayments (or paying twice) on CAM expenses
- It’s easier to calculate each party’s share of the expenses
- You can verify capital costs
- A third party double-checks your maintenance information
- It’s easier to negotiate caps and future contracts
These are just a few of the benefits of a CAM audit, but you can enjoy even more if you supplement it with the right CRE software solution.
Maximizing CAM Audits with CRE Software
Once you’re done with your CAM audit, then what? Many choose to store them physically, but if you keep information related to audit findings, repair tracking and maintenance requests, it will increase your visibility into client happiness and the state of your CAM needs. Ultimately, you want to protect your buildings and assets as a CRE pro and the right software can help you do that by providing all the information you need to easily make decisions—automating much of the data crunching and organizing on the back end.
Perhaps what CRE pros need to know about CAM audits most is that CRE software is an available tool. CRE software can help you track, organize and schedule your CAM audits. To see the capabilities in action for yourself, request a demo of Quarem today.
