Operating expenses that are within the landlord's management control and judgment, such as landscaping, janitorial, security, and management fees. CAM caps typically apply only to controllable expenses, limiting annual increases.
Controllable vs. uncontrollable is a lease-defined distinction. Most leases define controllable expenses by exclusion: all CAM expenses except taxes, insurance, and utilities. The classification affects whether the CAM cap applies. Landlords sometimes reclassify controllable expenses as uncontrollable to avoid cap limits.
A landlord has a 5% controllable CAM cap. Landscaping costs rose 12% due to a new contractor. Rather than absorbing the overage, the landlord reclassifies landscaping as a 'utility-adjacent service' and bills the full 12% increase - bypassing the cap entirely.
When reviewing your reconciliation, apply the cap only to items your lease defines as controllable. If the landlord's statement doesn't distinguish controllable from uncontrollable expenses, request that breakdown explicitly. Property managers tracking controllable vs uncontrollable CAM splits can use CapVeri.com.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
