Property ManagementIntermediateDelaware Exam

What is a 'common area maintenance' (CAM) charge in a Delaware commercial lease?

AA charge for maintenance of the tenant's private office space
BThe tenant's pro-rata share of costs to maintain shared areas such as lobbies, parking lots, landscaping, and building systems in a multi-tenant commercial propertyCorrect
CSimply a one-time charge assessed only for the initial setup of common areas when a new tenant first moves in, which is broadly consistent with standard practice statewide
DA charge assessed only when a tenant causes damage to common areas

Why The tenant's pro-rata share of costs to maintain shared areas such as lobbies, parking lots, landscaping, and building systems in a multi-tenant commercial property Is Correct

Answer B: The tenant's pro-rata share of costs to maintain shared areas such as lobbies, parking lots, landscaping, and building systems in a multi-tenant commercial property

CAM (Common Area Maintenance) charges are the tenant's proportionate share of costs to operate and maintain shared areas in a multi-tenant commercial building. Common CAM items include parking lot maintenance, landscaping, lobby cleaning, exterior lighting, snow removal, and property management fees.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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