Common Area Maintenance And Real Estate Management Services in USA

Investing in retail spaces is a viable investment option. To get back a return on investment that is profitable it is best to understand the charges that you will apply on that property. Common area maintenance or CAM is a component that will contribute towards your return on investment.

When it comes to Real estate management services in USA, any agent or management firm will be able to tell you that CAM costs are expenses borne by the owner but are paid by the tenant. These charges are calculated on a pro-rata basis and include taxes and other components. The various components of common area maintenance costs are as follows.

Maintenance and administrative charges

Retail space owners with the advice of their real estate property management agents can charge up to 5-18% of the total cost of administering and maintaining their premises. Administrative and maintenance costs include all the charges that the owner incurs to ensure that the property looks aesthetic, functions smoothly and is kept safe.

Facilities charges

Any retail space has to have the basic features that any commercial real estate property does. Facility charges include all the charges that the owner has to bear for the maintenance of service facilities that not only all tenants use but also all the customers visiting the place use. Washrooms, elevators, escalators, fire escape routes and all other necessary safety equipment fall under this category.

Outdoor area maintenance charges

Real estate property management observations show that a retail space with adequate parking space and recreational activity area is more likely to be leased out sooner compared to a property that does not have such services. However, as an owner that increases your initial costs. This you can get back by charging for them under the outdoor area maintenance section.

Inspections and improvements

Any commercial real estate has certain legal obligations that it has to abide by. These cover the clause of getting the premises regularly inspected for any damages and for any health hazards. Real estate services arrange for such inspections and even get the necessary improvements and repairs done. The costs of such activities can be partially shared by all tenants under CAM costs.

Additions or improvements

With the advancement in technology, your tenants may demand that you make certain changes to the premises. You can split the cost of getting these improvements between your tenants that are mutually beneficial to all parties involved in the property.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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