What every triple net tenant needs to know about CAM reconciliations
What you will learn
How NNN leases differ from gross and modified gross leases
Why NNN tenants are overcharged more often than other lease types
The 5 most common NNN lease traps
How to read a reconciliation statement and identify errors
The year-end audit checklist for NNN leases
How to negotiate better terms at renewal
Triple net tenants pay more CAM exposure than any other lease type, and reconciliation errors hit harder when you are responsible for the full cost stack. This guide covers the mechanics of NNN reconciliations, the most common traps, and what to do when numbers do not add up.
I built CAMAudit after seeing how many tenants overpay on CAM reconciliations without realizing they have the right to audit.
Frequently Asked Questions
What is the difference between NNN and gross leases?
In a gross lease, the landlord pays most operating expenses and the tenant pays a flat rent. In a triple net (NNN) lease, the tenant pays base rent plus property taxes, insurance, and maintenance costs. The tenant has direct exposure to cost increases, so errors in those calculations have a larger impact on what you actually owe.
Why do NNN tenants get overcharged?
NNN tenants get overcharged because they are responsible for a broad category of expenses with less lease-level protection than modified gross tenants. Common issues include expenses that should be landlord-only costs getting passed through, incorrect pro-rata share denominators, and management fees calculated on a larger base than the lease allows.
Can I audit past years?
Yes, as long as you are within the audit window your lease specifies. Most leases allow 1 to 3 years of lookback. If your lease is silent on the audit window, state law may govern. NNN leases sometimes have tighter windows because the tenant takes on more of the reconciliation risk, so checking your specific clause early is important.
What records should I request from my landlord?
Request the full operating expense ledger for each year under review, all vendor invoices for the largest expense categories, the insurance certificate, the property tax bill, and the management fee calculation worksheet. Your lease may entitle you to all of these. Document your request in writing and retain the landlord's response.
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