Property Management

Iowa's CAM (Common Area Maintenance) charges in commercial leases represent:

AThe landlord's profit margin on the lease
BThe tenant's proportionate share of costs to maintain common areas such as parking lots, lobbies, and landscaping✓ Correct
CA state-mandated fee for all commercial buildings
DThe cost of the tenant's individual unit maintenance

Explanation

CAM charges in commercial leases pass through to tenants their proportionate share of costs for maintaining common areas. These charges are in addition to base rent and are common in shopping centers, office parks, and multi-tenant commercial buildings.

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