What is maintenance of a common area?
The maintenance of the common area (CAM) is an additional amount of money that the residents of the real estate must pay to cover the cost of maintenance of shared devices. The fee is assessed by the real estate administrator and usually distributes expenditure into a common area in proportion to the percentage of square footage, which the passenger controls from the total space available for occupancy. CAM is usually a problem in commercial rentals and with residential cooperatives and condoms. For example, in the shopping center, common areas would include public bathrooms and promenade. The condoms complex can have common areas that include a pool and a golf course. The theory that is behind the passing of expenditure on the maintenance of these areas to passengers is a shared responsibility for the properties of the property that increases the value of the passenger's property interest.
The maintenance fees assessment of the common area is solved by the landlord or asset manager. Residential property will usually require residents to pay a monthly flat -rate feeAučka. The amount of the cams that each passenger pays would be proportional to the square shot of his apartment. Residents of larger apartments will have to pay a higher monthly cam. This flat fee would be regularly adjusted upwards to keep it in accordance with an increase in expenditure.
Commercial properties, such as office buildings and shopping centers, usually shift the maintenance fees on the basis of actual expenditures over time. Tenants would pay a variable amount for CAM, depending on the calculations carried out for a certain period of time. Due to this variability, CAM is one of the most important parts of commercial lease. Responsibility for paying this additional assessment at the peak of the rent may create or break the company.
properties that include the maintenance fees of the common area evaluate the fee for all. All passengers are contractually obliged to pay. INAs a result, it is necessary to know what expenses are included in the CAM calculation for commercial properties and how often CAM increases in residential real estate. The main disadvantage of this type of expenditure is that the owner of a business or apartment has no control over the process. Real estate administrators will decide whether, when and how and how costs, and the owner has no choice but to pay.