What should a complete reconciliation statement include?

A complete reconciliation should itemize all CAM expense categories, each tenant's pro-rata share percentage and denominator, estimated payments already made, and the resulting balance owed or credit due. Statements that only show a total are a red flag requiring a detailed breakdown request.

How does CAMAudit process a reconciliation statement?

CAMAudit extracts line-item data from the reconciliation and compares it against your lease terms, running CAM forensic detection rules covering excluded expenses, management fee caps, pro-rata denominator errors, gross-up violations, and controllable cap breaches. Results arrive in under 15 minutes.

Expenses & Charges

CAM Reconciliation

Last updated: May 2026

The annual process by which a landlord compares estimated CAM payments collected from tenants against actual CAM expenses incurred. Tenants receive a reconciliation statement showing whether they owe additional amounts or are due a refund.

Firm impact

The reconciliation statement is the primary document your firm audits. It should itemize every expense category. Most leases require delivery within 90 to 180 days after the close of the lease year. If a client brings it to you after receiving a true-up bill, your window to dispute is usually already open.

How this gets abused

A landlord delivers a reconciliation 14 months after year-end and includes a true-up charge of $28,000. Because the tenant accepted the late statement without objection, the landlord argued the lease's audit rights window had already closed.

Practitioner note

Firms that proactively calendar the expected reconciliation delivery date for each client engagement can capture the full audit window. Late delivery does not waive audit rights in most jurisdictions, but clients who do not know this often miss the deadline.