#1 Negotiating CAM charges
Sophisticated tenants will try to negotiate CAM charges, caps on CAM charges and what can be included. Terms negotiated in the lease can bind a Landlord for many years and affect NOI of the property. Knowing what the actual costs are and how much to negotiate is key to maximizing your return.
#2 Annual Reconciliation of CAM charges
Landlords have a deadline each year to reconcile NNN charges, provide an itemized statement of the operating costs for the preceding year, compute new NNN charges and invoice for the amounts owed (or refund overpayments). With a commercial property with multiple tenants, it’s important each tenant’s reconciliation and new charges are reflective of their lease. If you have 20 tenants, they may have 20 different lease agreements! At M&D, we specialize in making sure our management team fully understands each tenant’s lease, so our clients stay in compliance with agreements, and most especially, get the most out of their investment property.
#3 Bookkeeping and Audits
Detailed bookkeeping may be the most important part when working with a NNN lease. It is important to have copies of every expense included in the CAM charges. This includes every mowing invoice, lightbulb changed, and trash pick up. This is important not only for reconciliation purposes but also because tenants will have the right to audit a Landlord’s records and failure to maintain those records will cost you money.
M&D Property Management offers unparalleled services to Commercial Property Owners that improve your NOI and give you peace of mind. From tenant screening and leasing, to structuring expert lease agreements, annual budgeting, record keeping and detailed reconciliations, we do it all. Our promise to our clients is to keep your property well preserved and maintained, your tenants happy and their business successful, and your vacancy rates low. We will help you plan for today, tomorrow and the long-term and treat your property and bottom line as if it were our own. Our team has decades of experience in commercial property management, and our clients enjoy personalized, competent, connected management that delivers results.
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