A sudden increase in common area maintenance (CAM) charges can put extra pressure on your business budget. If you lease commercial space in Florida, you can review your landlord’s reconciliation statement to check whether the charges match your lease and the expenses the landlord reports.
When you can dispute CAM charges
You can challenge CAM charges if your landlord bills expenses that your lease does not allow or calculates your share incorrectly.
Review your lease to see which costs your landlord can pass on to you and how the lease requires the landlord to divide those costs among tenants. Your lease terms will guide your rights, so check them before disputing a charge.
Red flags in your CAM reconciliation
When reviewing your annual CAM statement, look for charges that may not follow your lease terms. Pay close attention to these potential warning signs:
- Unexpected management fees: Check whether the landlord’s fees exceed any limit set in your lease.
- Capital improvement costs: Review charges for major projects, such as roof or parking lot replacements, to see whether your lease allows them.
- Incorrect expense shares: Check whether the landlord used the correct percentage to calculate your portion of shared expenses.
- Unexplained charges: Ask for itemized records or invoices if you cannot identify the reason for a charge.
Not every unusual charge is improper. Your lease determines which expenses the landlord can pass on to you and how the landlord must calculate your share.
Act quickly to protect your rights
If you believe your CAM reconciliation contains errors, take action before your lease’s deadlines expire. Send your landlord a written dispute that identifies the charges you question and explains your concerns.
Keep copies of your correspondence, payment records and any response you receive. If the dispute continues, review your options with a Florida commercial real estate lawyer before withholding payment, as unpaid rent may put your tenancy at risk.
Resolve CAM disputes before they escalate
Unexpected CAM increases can affect your business finances, but reviewing your lease, keeping clear records and raising concerns promptly can help you address billing disputes. If you cannot resolve the issue with your landlord, consult a Florida commercial real estate lawyer to explore your options.