Operating expenses outside the landlord's management control - typically taxes, insurance, and utilities - that are excluded from CAM cap limitations and can be passed through in full regardless of annual increase amount.
The uncontrollable category is valuable to landlords because it creates a pass-through bucket with no cap protection for tenants. In periods of rising property taxes or insurance costs, uncontrollable charges can escalate sharply. Some leases limit the uncontrollable carve-out to specific line items.
Property insurance premiums jumped 35% after a regional storm season. The landlord passed through the full increase as an uncontrollable expense with no cap. Tenants received a $15,000 surprise true-up despite having a 5% CAM cap - because insurance was excluded.
Negotiate caps on individual uncontrollable categories where possible - especially insurance. A separate insurance cap (e.g., 10% annual increase) provides partial protection even when the main CAM cap has a carve-out.
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Start Free AuditThis 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.