Modified Gross Lease tenants face specific billing risks tied to how expenses are allocated and reconciled. The most common error appears in the section below. CAMAudit runs 14 forensic detection rules on your reconciliation statement to identify every recoverable dollar.
Landlords gradually shift exterior maintenance obligations onto the tenant through ambiguous lease language, billing for items like exterior window cleaning, parking lot maintenance, or snow removal that should remain the landlord's responsibility. Utility markups, where the landlord charges above the utility provider rate, are also common.
A hybrid lease structure negotiated between a pure gross lease and a triple net lease. The base rent covers some operating expenses (typically property taxes and building insurance) while the tenant is directly responsible for other costs (typically utilities and interior maintenance). The exact allocation of expenses is negotiated and varies significantly between leases.
Landlord typically covers: property taxes, building insurance, exterior maintenance, structural costs, and common area upkeep. Tenant typically covers: electricity, gas, water, HVAC maintenance, interior janitorial, and interior repairs. The split is entirely dictated by the lease, no universal standard applies.
No formal CAM pool or annual reconciliation in most modified gross leases. Utilities are submetered or billed directly to the tenant by the landlord at the utility provider rate. Interior maintenance is tenant-directed. Some modified gross leases include a base year expense stop that functions similarly to a full-service gross lease escalation.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
Map every billed expense to a specific lease provision allowing it. Challenge any exterior or structural charges appearing on tenant invoices. Audit utility rates against the underlying utility provider bills to detect markups. If there is an expense stop, verify it is calculated using the same methodology as the base year. Property managers can automate gross-up calculations and tenant share allocations with CapVeri.com.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
Next Best Step
Walk through the full audit steps before you upload your lease and CAM statement.
Review the audit process before you upload your lease and reconciliation.
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Run the free audit when you want documented findings.
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Find My OverchargesNeed 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.
