> ## Documentation Index
> Fetch the complete documentation index at: https://docs.techfootintl.com/llms.txt
> Use this file to discover all available pages before exploring further.

# CAM

> Common Area Maintenance — recover shared operational costs from commercial tenants based on their pro-rata share of leasable space.

## What is CAM?

**CAM (Common Area Maintenance)** is an allocation method used in commercial real estate — retail malls, office buildings, mixed-use developments. The landlord incurs ongoing costs to operate and maintain shared spaces (lobbies, parking lots, landscaping, security, cleaning). These costs are recovered from tenants based on each tenant's **pro-rata share** of the total leasable area.

Common CAM cost categories include:

* Building maintenance and repairs
* Cleaning and janitorial services
* Security and access control
* Landscaping and exterior upkeep
* Common area utilities (lighting, HVAC)
* Property management fees

CAM is not a usage charge — tenants pay for their proportional share of shared *operational expenses*, not their individual consumption.

***

## How It Works in Billspree

CAM maps onto Billspree's composition model with one added complexity: the estimate + reconciliation cycle.

| Billspree Concept    | CAM Role                                                                                                         |
| :------------------- | :--------------------------------------------------------------------------------------------------------------- |
| **Pricing Template** | Defines rate components (CAM cost pool) and charge components (per-tenant allocation, reconciliation adjustment) |
| **Rate Card**        | Holds the estimated annual CAM budget, broken into monthly amounts                                               |
| **Charges Set**      | Contains the allocation formula: `(Tenant SF ÷ Total Leasable SF) × Total CAM Cost`                              |
| **Composite Plan**   | Combines Rate Card and Charges Set into a subscribable tenant lease plan                                         |
| **Subscription**     | Captures tenant-specific inputs (leased square footage) used in the formula                                      |

### The Allocation Formula

```
Tenant CAM Charge = (Tenant Square Footage ÷ Total Leasable Area) × Total CAM Costs
```

For example, a tenant leasing 2,000 sq ft in a 20,000 sq ft building with \$60,000 annual CAM costs:

```
Annual CAM = (2,000 ÷ 20,000) × $60,000 = $6,000
Monthly CAM = $6,000 ÷ 12 = $500/month
```

### Estimate and Reconciliation

CAM charges typically follow a two-step annual cycle:

1. **Monthly Estimates** — tenants pay a fixed monthly CAM estimate based on the projected annual budget
2. **Year-End Reconciliation** — actual costs are tallied and compared to estimates. Tenants receive either a **true-up invoice** (if actuals exceeded estimates) or a **credit** (if actuals came in under)

***

## Key Differences from RUBS

|                      | RUBS                           | CAM                                |
| :------------------- | :----------------------------- | :--------------------------------- |
| **What's allocated** | Utility consumption costs      | Operational/maintenance expenses   |
| **Context**          | Multifamily residential        | Commercial real estate             |
| **Allocation key**   | Occupancy, bedrooms, sq ft     | Pro-rata square footage            |
| **Billing cycle**    | Monthly (tied to utility bill) | Monthly estimates + annual true-up |
| **Reconciliation**   | None                           | Year-end true-up standard          |

***

## Key Characteristics

|                      |                                                      |
| :------------------- | :--------------------------------------------------- |
| **Meter required?**  | No — cost recovery, not consumption billing          |
| **Cost source**      | Landlord operational expenditure                     |
| **Allocation basis** | Pro-rata share of total leasable area                |
| **Billing cycle**    | Monthly estimates, annual reconciliation             |
| **Common in**        | Retail malls, office buildings, mixed-use commercial |