Paying a CAM reconciliation without reviewing it is one of the most expensive habits in franchise operations. The reconciliation arrives, the amount is due, and without a systematic review process most operators pay without verifying a single line against their lease.
These 15 questions change that process. They're structured around the most common CAM error categories, and each one tells you exactly where to look and what a problem looks like.
The 15 Questions
Question 1: What denominator was used, and how was it calculated?
Where to find it: The reconciliation should disclose the denominator figure and methodology. If it doesn't, request the denominator worksheet from the property manager.
Red flag: The denominator matches or closely approximates the building or center's total GLA without accounting for any exclusions. Verify against your lease's definition of the denominator.
Question 2: Is the management fee percentage the same as in my lease?
Where to find it: Your lease management fee provision (typically in the CAM or Operating Expenses section), compared to the management fee line on the reconciliation.
Red flag: The fee percentage is different from what the lease states. Even a 0.5% difference on a large pool is significant.
Question 3: What base is the management fee applied to?
Where to find it: Your lease specifies whether the management fee base is gross operating expenses, controllable expenses, or a defined subset. The reconciliation's management fee line, divided by the stated percentage, reveals what base was actually used.
Red flag: The implied base includes expense categories that your lease excludes from the management fee calculation (taxes, insurance, capital reserves, administrative fees).
Question 4: Are anchor tenants excluded from the CAM pool — and if so, are they also excluded from the denominator?
Where to find it: Your lease or a center rent roll showing anchor tenant configurations. The property manager can confirm which tenants have separate operating expense structures.
Red flag: The CAM pool disclosure shows fewer tenants than you know occupy the center, but the denominator hasn't decreased proportionately. Anchors may be excluded from costs but not from square footage in the denominator.
Question 5: Is there a CAM cap in my lease, and was it applied?
Where to find it: Your lease CAM cap provision (often in the Operating Expenses or CAM article). If a cap exists, the reconciliation should reflect it.
Red flag: CAM charges increased more than the cap percentage over the prior year, or the reconciliation doesn't reference a cap that your lease includes.
Question 6: Is there a controllable expense cap, and was it applied?
Where to find it: Your lease may define "controllable expenses" (management-controllable costs like janitorial, landscaping, security) separately from non-controllable costs (insurance, taxes) and apply a separate annual increase cap.
Red flag: Controllable expense lines increased faster than the cap rate, or the reconciliation doesn't distinguish between controllable and non-controllable expense categories.
Question 7: Are any parking lot or building improvements included as maintenance expenses?
Where to find it: Request backup invoices for any single maintenance line item exceeding $10,000. Your lease's capital improvement definition determines whether the work qualifies as maintenance or must be amortized.
Red flag: Line items labeled "parking lot maintenance," "HVAC maintenance," or "roof repair" that exceed $15,000–$20,000. These amounts suggest replacement or major repair work that may qualify as capital improvement.
Question 8: Are administrative fees, accounting fees, or asset management fees separately listed?
Where to find it: Review each line item on the reconciliation for fees beyond the management fee. Compare each named fee against your lease's authorized pass-through categories.
Red flag: Any fee not explicitly authorized by your lease. Common unauthorized additions include "accounting fees," "property administration fees," and "asset management fees."
Question 9: Does the insurance line include any deductible amounts?
Where to find it: Request backup documentation for the insurance line. If a property damage claim occurred during the reconciliation year, request confirmation of whether deductible costs are included.
Red flag: Insurance costs that increased significantly in a year following a known damage event. The insurance premium should be verifiable against a certificate of insurance.
Question 10: Are there any line items for landlord office space, leasing office expenses, or staff costs?
Where to find it: Review each expense category, particularly administrative and overhead lines. Compare against your lease's explicit exclusions list, which typically includes landlord overhead, leasing costs, and executive compensation.
Red flag: Line items for "property office expense," "leasing commissions," "management office maintenance," or any description that suggests landlord business overhead rather than building operations.
Question 11: Does the reconciliation cover the same lease year as stated?
Where to find it: The reconciliation should clearly state the calendar or lease year it covers. Compare the period against your lease year definition.
Red flag: The reconciliation covers a longer or shorter period than your lease year, which can result in more expenses being allocated than your lease requires.
Question 12: What was the estimated monthly CAM payment and how does it compare to the actual?
Where to find it: Your prior-year lease amendment or estoppel setting the monthly CAM estimate, compared to the reconciliation total divided by 12.
Red flag: A large positive true-up (actual exceeds estimates by more than 15–20%) without a clear explanation of what increased. This alone warrants a line-by-line review.
Question 13: Are taxes and insurance separately disclosed and verifiable?
Where to find it: Property tax bills are public record for most jurisdictions. Insurance premiums should be verifiable against a certificate. Both should be disclosed as separate line items on the reconciliation.
Red flag: Taxes and insurance bundled into a single line with no disclosure of individual amounts, or insurance amounts that seem disproportionate to the property's insured value.
Question 14: Was a base year correctly applied, and were base year stops functioning as intended?
Where to find it: If your lease includes a base year (you pay only the increase over base year costs), verify that the base year expenses are accurately stated and that the reconciliation deducts them correctly.
Red flag: Base year stops that haven't been applied, or base year expenses that appear to have been restated to a lower figure than the original reconciliation showed.
Question 15: Has the same landlord charged consistent methodologies across years?
Where to find it: Compare current-year reconciliation methodology against prior years — specifically denominator figures, management fee bases, and fee structures.
Red flag: A material change in methodology without a lease amendment or explicit notification. New methodology = new calculation = potential unauthorized change.
Running through these 15 questions manually is time-intensive. CAMAudit checks all 14 detection rules — covering every question on this list — automatically when you upload your reconciliation. Run a scan before you pay.
Frequently Asked Questions
Do I need my full lease to answer all these questions?
For most questions, you need the operating expenses, CAM, and management fee articles from your lease. If you don't have a clean copy, request one from your landlord or locate it through your franchise agreement records. You can't verify the reconciliation without the lease.
What if the landlord doesn't provide backup documentation?
Your lease audit rights provision gives you the contractual right to request documentation. Put the request in writing, cite the specific lease provision, and set a 30-day response deadline. A landlord who refuses to provide documentation is creating a record that may be relevant if the dispute escalates.
Should I ask these questions every year or only when something looks off?
Every year. Errors don't always produce a visible jump in the total amount — some errors are small in any single year but compound significantly over the audit window. Annual review prevents that compounding.
If I find an issue, should I call the property manager or put it in writing?
Always in writing. A phone conversation doesn't create an audit trail, doesn't stop the audit window from running, and doesn't establish the date you raised the dispute. Written notice is what matters legally.
Can I start the review before the reconciliation arrives?
Yes. You can request your lease copy, prior-year reconciliation, and denominator calculation any time. Having those on hand speeds the review when the new reconciliation arrives.