Capex Amortization Compliance: When Landlords Spread Capital Costs the Wrong Way
A landlord who amortizes a $200,000 roof replacement over five years and bills your pro-rata share each year is charging you for capital costs, and that recovery is only allowable if your lease explicitly permits it and the schedule is correct.
How CAMAudit Detects This
CAMAudit identifies line items in the reconciliation labeled as amortized improvements, capital recovery, building improvements, or similar terms that suggest multi-year cost recovery.
CAMAudit checks the lease for explicit authorization of capital cost recovery and any conditions such as cost-reduction requirements, legal mandates, or minimum useful life thresholds.
CAMAudit flags amortized charges where the lease is silent, where the amortization period appears shorter than reasonable useful life, or where the billed annual amount does not match the expected installment from the stated cost and period.
Real-World Example
A 2022 reconciliation included a $4,800 line item labeled "HVAC amortization, Year 2 of 5." The lease permitted CAM recovery only for operating expenses and explicitly excluded capital improvements. CAMAudit flagged the charge as impermissible CapEx amortization because the lease contained no authorization for capital recovery in any form.
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Frequently asked questions
Find overcharges in your CAM reconciliation. Most audits complete in under 15 minutes.
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Next Best Step
This rule is evidence, not the end of the journey
Use the rule page to understand the issue, then move back into the proof sequence and the audit flow.
See how triggered findings appear before payment.
Review what unlocks, pricing, and the dispute-ready output.
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Need to extract lease terms before your audit?
A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
Go to lextract.ioThis 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.