How to Dispute CAM Charges

When a commercial tenant identifies errors in their CAM charges, the next step is to formally dispute those charges with the landlord. The dispute process requires preparation, documentation, and a clear understanding of your lease terms. This guide explains how tenants challenge CAM charges and what to expect during the process.

How Tenants Challenge CAM Charges

Disputing CAM charges is a structured process. Tenants who approach it methodically — with evidence tied directly to their lease — are more likely to reach a favorable resolution. The typical process includes:

1. Review the reconciliation statement — Start by obtaining and reviewing the annual CAM reconciliation statement to identify specific charges that appear incorrect or unexpected
2. Compare against the lease — Cross-reference each flagged charge against the specific provisions of your lease to determine whether the charge is permitted, capped, or excluded
3. Document the discrepancies — Prepare a written summary of each disputed charge, including the lease clause it violates, the amount billed, and the amount you believe is correct
4. Submit a formal dispute — Send a written notice to the landlord or property manager identifying each disputed item and requesting a correction or credit
5. Negotiate or escalate — Work with the landlord to resolve the disputed charges. If the landlord does not agree, tenants may need to escalate through the dispute resolution process defined in their lease

Documentation Required

A successful CAM dispute depends on clear, specific documentation. Before initiating a dispute, tenants should gather:

• A copy of the signed lease agreement, specifically the sections covering operating expenses, CAM charges, and excluded costs
• The annual CAM reconciliation statement being disputed
• Prior years' reconciliation statements for comparison (to identify unusual year-over-year changes)
• Any correspondence from the landlord regarding CAM charges or adjustments
• An audit report or analysis identifying the specific discrepancies — tools like LeaseGuard can generate this automatically

The more specific and evidence-based the dispute, the stronger the tenant's position. Vague complaints about high costs are less effective than citing a specific lease clause that limits a charge to a defined amount.

Lease Clauses That Limit Charges

The strength of a CAM dispute depends on what the lease says. Key clauses that tenants should review include:

• CAM caps — CAM cap clauses set a maximum on annual CAM charges or limit year-over-year increases. If billed amounts exceed the cap, the tenant has a clear basis for dispute
• Excluded expense categories — Most leases define categories of expenses that cannot be included in CAM. Common exclusions include capital improvements, landlord's income taxes, and leasing commissions
• Administrative fee limits — Many leases cap management or administrative fees at a specific percentage of total operating expenses
• Pro rata share definition — The lease defines how the tenant's share is calculated. If the landlord uses incorrect square footage or an inconsistent denominator, every charge will be inflated
• Audit rights — The lease's audit clause defines how and when the tenant can review the landlord's records, which supports the dispute process

When Audits Identify Discrepancies

A formal audit — whether performed manually or through an automated tool — provides the evidence foundation for a dispute. When an audit identifies discrepancies, tenants should:

• Prioritize the largest dollar-value findings, as these have the most impact and are easiest to substantiate
• Verify that each finding ties back to a specific lease clause, not just a general sense that charges seem high
• Consider whether the discrepancy is a one-time error or a recurring issue across multiple years
• Determine whether the total overcharge exceeds any threshold in the audit clause that would require the landlord to reimburse audit costs

For a comprehensive overview of the most common issues audits uncover, see our guide to common CAM overcharges tenants miss. To run an automated analysis of your own lease and reconciliation statements, visit our CAM audit guide.