CAM Charge and Management Fees

[Karisa M.]

Commercial property management company charges 5% of monthly gross income as its fee, which includes CAM income. The tenant's lease is NNN and property management fees are considered a CAM charge. If the tenant is paying a monthly CAM fee (which includes property management fees) and the property management company is charging 5% of gross income (which includes CAM), is the tenant being double charged? Even if so, is this standard?

[Daniela Ferguson]

Hello Joel,

I am the same question as Karisa "If the tenant is paying a monthly CAM fee (which includes property management fees) and the property management company is charging 5% of gross income (which includes CAM), is the tenant being double charged? Even if so, is this standard?"

This is my point of view "to tenants I say that property doesn’t hire vendors and processes AP by itself and to property owners the CAM charges doesn’t collect themselves (same for Rent). Therefore, if we don’t make the effort to collect and account for the CAM charges the property owner has less income on the table. That explains why in my opinion is that CAM should be included to calculate the Property Management fee. But that is my opinion. I would like to find out the rule to calculate property management fee.

Looking forward to hear from you!

Daniela Ferguson

Chico CA