Property Management

What is a 'CAM reconciliation' in Pennsylvania commercial property management?

AA computer-aided management tool for reconciling tenant records
BThe annual process of reconciling estimated versus actual Common Area Maintenance expenses charged to tenants, resulting in a credit or additional charge✓ Correct
CA PREC reconciliation process for property management escrow accounts
DA Pennsylvania tax reconciliation form for commercial property managers

Explanation

Common Area Maintenance (CAM) reconciliation is an annual process in Pennsylvania commercial leasing where the landlord compares estimated CAM charges (collected monthly from tenants) to actual CAM expenses for the year. If actual expenses exceeded estimates, tenants owe additional amounts; if actual expenses were less, tenants receive credits. CAM categories (snow removal, landscaping, parking lot maintenance, insurance, management fees) should be clearly defined in the lease to avoid reconciliation disputes.

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