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Be sure to ask questions about what's included in all fees that are padded into rent under the terms of your lease, and find out how those fees might increase each year.Some leases might cap rent increases to a reasonable percentage, but CAM fees might go up at a different percentage rate.While a CFO of a property-management firm doesn't directly manage the tenants, he still needs to understand how those fees are collected …more important, since large retailers often dispute CAM fees or pay only a percentage …
If your lease requires you to pay CAM fees for any operational or management costs – immediately object to such costs.
the CFO must know how to account for the difference, or CAM slippage.”Before you attempt to negotiate CAM or Administrative Fees, be sure that you understand what they are.
If CAM fees are a complicated issue for CFO’s, you better go in prepared!
They might include repairs, insurance, property maintenance, and sometimes even the salaries of administrative staff when those employees contribute to running a business park.
These salaries might be tagged as "administrative fees." CAM expenses are typically calculated on a pro-rata basis.