Excluded Service Charges: How CAMAudit Detects This Overcharge
Your lease almost certainly lists expenses your landlord cannot charge you for. Every excluded item on your reconciliation is money you paid but were not obligated to pay. An NYC Comptroller audit found $412,000 in bad debt reserves billed as recoverable operating expenses. Capital improvements disguised as maintenance are another pattern that can add $10,000 or more to a single year's bill.
How CAMAudit Detects This
CAMAudit extracts the exclusions section of your lease using AI-powered document parsing. It identifies every expense category your landlord agreed to exclude from CAM pass-throughs, including explicit exclusions (named categories) and implied exclusions based on lease type and local custom.
The tool then classifies each line item on your CAM reconciliation statement and checks whether it matches an excluded category. Classification uses both keyword matching and semantic analysis to catch expenses that are disguised with non-standard naming conventions.
Each flagged line item is paired with the specific lease exclusion that prohibits it. CAMAudit also notes the total dollar value of excluded expenses included in your bill so you can see the full scope of the overcharge at a glance.
Beyond lease-specific exclusions, CAMAudit also scans for items that are universally non-recoverable under GAAP regardless of what the lease says. Bad debt reserves, provisions for doubtful accounts, contingency reserves, and litigation reserves fall into this category. These are landlord-side financial risk costs, not property operating expenses, and they never belong on a CAM statement.
Real-World Example
An NYC Comptroller audit of the Brooklyn Terminal Market found $412,000 labeled "Provision for Doubtful Accounts" buried in the $11.4 million operating expense statement. That single line item inflated every tenant's CAM bill by 3.6%. Under GAAP, bad debt reserves are a landlord financial risk cost, not a recoverable operating expense. CAMAudit flags this pattern automatically, with or without an explicit lease exclusion, and generates a dispute letter draft citing the GAAP basis for the objection.
Upload your lease. CAMAudit runs 13 detection rules in under 5 minutes.
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