Triple Net Lease (NNN) 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.
Capital expenditures disguised as routine maintenance, a full roof membrane replacement billed as "repair," a parking lot mill-and-pave billed as "patching," or HVAC unit replacements billed as "maintenance." These are the single largest source of NNN lease overcharges because landlords must only amortize true CapEx items, not expense them in one year.
A commercial lease structure in which the tenant pays base rent plus their pro-rata share of all three major property expense categories: property taxes, building insurance premiums, and common area maintenance (CAM) costs. The landlord typically retains responsibility only for structural capital items such as the roof and foundation.
Tenant bears almost all operating expenses including property taxes, insurance, CAM, management fees, landscaping, parking lot maintenance, utilities, and security. Landlord retains structural obligations (roof replacement, foundation, exterior walls) unless lease language expands tenant responsibility to "absolute net" territory.
CAM charges are estimated monthly based on the prior year's actuals and billed as part of the tenant's monthly payment. At year-end, the landlord performs an annual reconciliation comparing actual expenses to estimates. Tenant pays the difference (or receives a credit). Charges are allocated on a pro-rata share basis: tenant's GLA divided by total building GLA.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
Verify that structural replacement costs are excluded or properly amortized per GAAP useful life. Confirm management fee does not exceed the lease cap and is not calculated on grossed-up or non-CAM expenses. Audit the pro-rata share denominator to ensure all constructed GLA (including anchor tenant space) is included. Check for controllable expense cap violations on year-over-year increases. Tenants in NNN leases can verify all operating expense pass-throughs with CAMAudit.io. Property managers preparing NNN reconciliations can automate with CapVeri.com.
Upload two PDFs. 14 detection rules. Under 15 minutes. Free.
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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.
