CAM and service charge reconciliation, next to the leases
Recovering shared costs from tenants starts with the lease. VemLease keeps CAM and service charge reconciliation in the same system as the leases the charges come from.
A 30 minute demo with a local Vemco team. Company email, no commitment.
What a reconciliation involves
CAM in the US and service charges in the UK and Europe follow the same idea: tenants pay their share of the cost of running the shared parts of a property, first on account and then trued up against the actual cost.
A budget and payments on account
Before the year starts, a budget sets what tenants pay each period towards shared costs.
Actual costs and each tenant's share
After the year, actual costs are split across tenants on the basis each lease sets out.
The year-end true-up
Each tenant receives a statement and either pays the difference or is credited the overpayment.
Charges that start from the lease
The share a tenant pays is written in the lease. Keeping the reconciliation in the same system means the starting point is the lease itself.
Reconciliation in the lease system
CAM and service charge reconciliation sits in the same system as the leases the charges come from.
Charges on the rent roll
Charges sit next to base rent in the integrated rent roll, so the income picture is complete.
Invoices from the same record
Invoice management and revenue tracking run across all assets and entities in the same system.
Documents tenants can see
Through the tenant portal, tenants find their documents and invoices in one place.
Shared costs next to how the property is used
Footfall and occupancy show how the shared parts of a property are used. Each is its own Vemco product on the same platform.
Footfall from Vemcount
Footfall per entrance and floor, from the platform that counts 60+ million people a day.
Tenant sales from VemTenant
Tenant sales and benchmarks, with the reporting status of each tenant.
Occupancy from VemSpace
Occupancy and space use for the areas you manage.
Part of one lease administration system
Lease tracking and critical dates
Renewals, options and expiries, with alerts before they fall due.
CAM and service charge reconciliation: common questions
What is CAM reconciliation?
CAM (common area maintenance) reconciliation compares what tenants paid during the year towards shared costs with the actual costs, and settles the difference with each tenant according to their lease.
What is the difference between CAM and service charges?
They describe the same idea in different markets. CAM is the common US term; service charge is used in the UK, Europe and the Middle East. Both recover the cost of running shared areas and services from tenants.
What costs are usually included?
Typically cleaning, security, maintenance and repair of common areas, utilities for shared spaces, insurance and management. What a tenant pays is set by the lease, and leases often exclude or cap certain items.
When does reconciliation happen?
Usually once a year after the year end, sometimes more often. Tenants then receive a statement showing their share of actual costs against what they paid.
How does VemLease handle CAM and service charges?
VemLease keeps CAM and service charge reconciliation in the same system as the leases, the rent roll and invoice management. How it matches the way your leases allocate costs is part of the demo, on your own portfolio.
See VemLease on your own portfolio
A 30 minute demo with a local Vemco team. Company email, no commitment.