What is the main purpose of CAMs in a lease?

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

The primary purpose of CAMs, or Common Area Maintenance charges, is to cover the costs associated with maintaining the common areas of a property that are used by all tenants. These areas can include lobbies, hallways, parking lots, landscaping, and other shared spaces essential for the overall functionality and appeal of the property. By ensuring that these common areas are well-maintained, CAM charges help to provide a safe, clean, and pleasant environment for all tenants and their customers.

While CAMs could indirectly contribute to reducing the landlord's operational costs or even increasing property value by enhancing the tenant's experience, their fundamental role is to ensure that the shared spaces are managed effectively and that the associated costs are fairly distributed among all tenants.

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