Electricity, water, and gas consumed in shared building areas - lobbies, parking lot lighting, common restrooms, mechanical rooms - as distinct from tenant-specific utility usage. Common area utilities are typically an uncontrollable CAM expense.
Common overcharges include: billing entire building utility costs through CAM without separating tenant-metered usage from common area consumption; failing to credit sub-metered tenant payments against the gross utility pool.
A landlord's utility pass-through included 100% of the building's electricity bill. Several large tenants had sub-metered connections and paid their own electricity directly to the utility. Their usage was not credited out of the CAM pool - other tenants subsidized sub-metered tenants.
Ask the landlord to confirm that sub-metered tenant utility payments are excluded from the common area utility pool. Request the utility allocation methodology.
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Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.