CAM charges are best described as:

• A. CAM charges cover debt service
• B. CAM charges cover capital improvements
• C. Common Area Maintenance charges cover the cost of maintaining shared areas and are often passed to tenants
• D. CAM charges are never passed to tenants

Answer: (C)

Common Area Maintenance (CAM) charges are the costs of keeping the building’s shared spaces in good repair and functioning—things like cleaning, landscaping, security, utilities for common areas, and property management. Landlords typically pass these expenses through to tenants as reimbursement, allocated based on each tenant’s share of the total rentable area. While some leases may address debt service or capital improvements separately, CAM charges, in their standard use, cover ongoing operating costs for maintaining the common areas and are commonly billed to tenants.