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Public-record case study

Riverside County CA: management fee percentage cap overcharge case study

A public-record CAM case study showing $4,400 in management fee overcharges: landlord billed 11.1% effective rate against a 5% contractual cap.

Riverside County Board of Supervisors2022 statementNNN leaseOffice

Apparent overcharge

$4,400

Findings

1

High confidence

$4,400

Source

Riverside County CA, Contract #RC-2021-0189 (CA Public Records Act)
Management fee billed at $8,000 on a $72,000 operating expense base.
Effective rate of 11.1% versus 5% contractual cap.
Overcharge of $4,400 identified by Rule 3.

What happened

Riverside County leased office space at the Galleria at Tyler under a NNN lease capping management fees at 5% of operating expenses. The landlord billed $8,000 in management fees on a $72,000 base, an effective rate of over 11%. The correct fee was $3,600. The $4,400 excess is a straightforward percentage cap violation identified through a California Public Records Act request.

Findings from the pipeline

Rule 3: Management Fee Overcharge

high confidence

$4,400

Management fee of $8,000.00 exceeds the lease cap of 5.00% applied to base $72,000.00. Correct fee: $3,600.00. Overcharge: $4,400.00.

Lease evidence

Management Fee shall not exceed five percent (5%) of Operating Expenses. Section 7.3.

Section 7.3, page 12

Math proof

billed=8000.00, cap_rate=0.05, base=72000.00, max_allowed=3600.00, overcharge=4400.00

Lease evidence

  • Pro-rata share fixed at 12.00% (21,600 SF / 180,000 SF).
  • Management fee capped at 5% of Operating Expenses per Section 7.3.
  • NNN lease structure: tenant pays pro-rata share of all operating expenses.

Why this matters for your firm

Management fee caps are one of the most common sources of CAM overcharges. Landlords often bill a flat dollar fee that looks reasonable in isolation but exceeds the percentage cap when checked against the actual operating expense base. Government tenants are particularly exposed because their lease files are public record, making cross-verification straightforward.

Correction package excerpt

Request for Cooperative Review of Certain Line Items. The automated review flagged an apparent discrepancy of $4,400.00 for the 2022 reconciliation year tied to a management fee exceeding the contractual 5% cap.

Detection guide

Management fee cap violations

Lease language

Management fee lease provisions

Frequently Asked Questions

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Public-record note

This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by Riverside County Board of Supervisors or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or ‘binding and conclusive’ provisions, and on applicable state law.

State statute of limitations periods apply to written contracts and range from 3 to 10 years. Your actual lookback window may be shorter based on your lease.

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