Costs for on-site security personnel, cameras, access control systems, and monitoring services for common areas. Security is a controllable operating expense included in most CAM cost pools.
Security service costs include guard labor, monitoring contracts, and equipment service (not equipment purchase/installation, which is CapEx). Landlords sometimes bundle security system upgrades - new cameras, access control hardware - with service costs as operating expenses.
A landlord upgraded the property's entire surveillance system ($180,000 in hardware and installation) and included the full cost as 'security services - operating expense' in the CAM pool. The prior year's security line item had been $45,000.
Flag any security cost line item that is 3x or more above prior-year levels. Request the security service invoices and distinguish between service contracts (operating) and capital equipment purchases (CapEx).
Ready to check your numbers? Start a free CAM scan.
Scan My Lease NowUpload two PDFs. 12 detection rules. Under 5 minutes. Free.
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.