Service and repair costs for elevators and escalators in multi-story buildings, included in CAM as a building systems operating expense. Elevator modernization or full replacement is a capital expenditure.
Elevator maintenance typically involves an annual service contract plus emergency repair costs. Full cab modernizations, control system upgrades, and motor replacements are capital expenditures. The line between "modernization" and "maintenance" is common ground for CAM disputes in office buildings with aging elevator systems.
A landlord entered a comprehensive elevator modernization agreement ($420,000) and included the full cost in a single year's CAM statement as 'elevator maintenance.' Tenants received a 340% spike in elevator-related CAM charges in that year alone.
Review elevator cost line items carefully in any year with above-average building maintenance charges. Demand the elevator service contract and any major repair or upgrade invoices. Modernization projects should be amortized over 20+ years.
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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.