Routine maintenance of exterior grounds including mowing, pruning, mulching, irrigation upkeep, and seasonal planting in common areas.
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | Yes | Yes |
| Modified Gross | Yes | Yes |
| Full-Service Gross | No | Yes |
CapEx Risk: This line item is commonly used to disguise capital expenditures as operating expenses. Verify all invoices against GAAP standards.
Approximate budget share: 3-5% of total CAM pool.
Landlords bill tenants for massive tree removal, full landscape redesigns, or installation of decorative hardscaping — all capital replacements disguised as routine upkeep.
This line item is commonly used to disguise capital expenditures as operating expenses. Capital expenditures must be excluded from CAM or amortized over their useful life per GAAP. If you see unusually high or one-time charges in this category, request all invoices and scope-of-work documentation before paying.
Request vendor invoices and scope of work. Challenge any line item that extends the useful life of the property rather than maintaining its current condition. Capital replacements must be excluded or amortized per GAAP.
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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.