What does the term "common area maintenance" (CAM) pertain to?

Prepare for the RECA Commercial Exam. Study with flashcards and multiple choice questions, with hints and explanations. Be exam-ready!

The term "common area maintenance" (CAM) specifically refers to the costs associated with maintaining shared or common areas in a property, particularly in commercial real estate settings. This can include expenses for cleaning, landscaping, lighting, snow removal, and other services that benefit all tenants and occupants of the building or complex. CAM fees are typically outlined in lease agreements and are distributed among tenants based on their share of space in the property.

In this context, the focus is on the maintenance of areas that are not dedicated to individual tenants, but rather to spaces used collectively, such as hallways, elevators, parking lots, and recreational areas. Proper management of CAM is essential to ensure that these common spaces remain safe, functional, and appealing, which in turn contributes to the overall satisfaction of tenants and visitors. Other choices are distinctly different; they focus on individual unit maintenance, repairs specific to a tenant's departure, or extensive building renovations, none of which pertain to the shared responsibility of common areas under CAM.

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