For lease administration teams, Common Area Maintenance (CAM) reconciliation season can be a challenging period. This blog discusses why the CAM Reconciliation season overloads lease administration teams and how this challenge can be overcome effectively.
Understanding CAM Reconciliation:
Before we explore the challenges, let’s briefly understand CAM reconciliation. CAM charges are fees paid by tenants to cover the maintenance and operation costs of shared spaces within a commercial property, such as lobbies, hallways, parking lots, and common areas. At the end of each financial year, lease admin teams initiate the CAM reconciliation process to compare the estimated CAM charges paid by tenants with the actual expenses incurred.
Why CAM Reconciliation Overloads Lease Administration Teams:
Complexity and Volume of Data:
CAM reconciliation involves an extensive amount of data, including invoices, receipts, maintenance logs, and utility bills. Lease administrators must carefully review and analyze this information to ensure accuracy. The sheer volume of data, coupled with its complexity, makes the process time-consuming and prone to errors.
Collaboration with multiple stakeholders to resolve discrepancies and disputes:
During CAM reconciliation, discrepancies and disputes may arise between tenants and landlords. These conflicts can stem from various factors, such as incorrect calculations, omitted expenses, or differing interpretations of lease agreements. Resolving these disputes requires thorough investigation and negotiation, further adding to the workload of lease administration teams. To successfully complete the CAM reconciliation process, lease administration teams must collaborate with multiple stakeholders, including property managers, accountants, and Landlords. Coordinating and communicating with these parties can be challenging, especially when dealing with a large number of leases or when parties are located in different time zones.
Time Constraints:
CAM reconciliation has specific deadlines and timelines within which lease administration teams must complete the process. As the end of the financial year approaches, the workload intensifies, often requiring lease administrators to work under significant time pressure. This time constraint increases the likelihood of errors and reduces the opportunity for thorough analysis.
Streamlining CAM Reconciliation by Outsourcing it to a Trusted Lease Administration & CAM Reconciliation Service Provider:
As discussed above, Common Area Maintenance (CAM) reconciliation process can be overwhelming for lease administration teams, consuming valuable time and resources. However, outsourcing this complex task to an experienced lease administration service provider like RE BackOffice can offer a solution that streamlines the CAM reconciliation process. Let’s explore how partnering with RE BackOffice can help alleviate the burden and enhance the efficiency of lease administration teams.
Expertise and Industry Knowledge:
A trusted lease administration service provider who has extensive expertise in CAM reconciliation, understands the nuances of lease agreements, property management, and accounting practices. By outsourcing CAM reconciliation to a knowledgeable service provider, your in-house lease administration teams can leverage their expertise to ensure accurate calculations, thorough analysis, and adherence to industry standards.
Comprehensive Data Management:
CAM reconciliation involves handling vast amounts of data, including invoices, receipts, and maintenance logs. Outsourcing CAM Reconciliation to a trusted lease administration vendor ensures that all relevant lease-related information is organized, secure, and easily accessible. This streamlines the review and analysis process for your lease administrators, allowing them to focus on value-added tasks rather than administrative burdens.
Dispute Resolution and Negotiation:
One of the most challenging aspects of CAM reconciliation is resolving disputes and negotiating with landlords. Your lease administration/CAM reconciliation service vendor acts as a neutral intermediary, handling communications and negotiations on your behalf. Their experience and industry knowledge enable them to effectively address discrepancies, ensure fair resolutions, and maintain positive tenant-landlord relationships.
Time and Cost Savings:
Outsourcing CAM reconciliation to a leading lease administration service provider like RE BackOffice allows you to save valuable time and resources. By delegating this complex task to experts, your internal lease admin teams can focus on core responsibilities, strategic initiatives, and tenant satisfaction. Additionally, the reduction in errors and efficient handling of disputes can lead to cost savings by ensuring accurate CAM charges.
Scalability and Flexibility:
Professional CAM Reconcilation service providers are usually able to offer scalable solutions tailored to the specific needs of each client. Whether managing a single lease or a portfolio of properties, their services can adapt to accommodate changing requirements. This flexibility allows your in-house lease admin teams to adjust the level of support they need, ensuring efficient CAM reconciliation regardless of portfolio size or complexity.
Outsourcing CAM reconciliation to an experienced lease administration service provider like RE BackOffice offers significant advantages. By leveraging their expertise, advanced technology, and efficient processes, leading lease administration service providers like RE BackOffice are able to streamline the CAM reconciliation process, reducing the burden on your in-house lease admin teams and enhancing accuracy. You benefit from cost savings, improved efficiency, and the peace of mind that comes from working with a trusted partner. Embracing outsourcing can revolutionize CAM reconciliation, allowing your in-house lease administration teams to focus on strategic initiatives instead of the mundane.
Rebolease.com, powered by RE BackOffice, Inc., is a premier provider of lease abstraction, administration, audit and accounting services. Headquartered in Pittsburgh, PA, we are a global boutique firm, providing high-quality services to top-tier clients across industry verticals, covering every type of lease and on any lease platform. We are proud to be a trusted partner, for 17+ years, to leading retailers, REITs, property owners/managers, and corporate accounts seeking a strategic advantage. All client projects are performed in-house.