Management Fee Overcharge: How CAMAudit Calculates What You Owe vs. What You Paid
If your landlord charged a management fee above the percentage cap in your lease, every dollar over the limit is an overcharge you can recover with math and your lease document. On a $1,000,000 revenue base, the difference between a 4% cap and a 5% fee is $10,000 per year.
How CAMAudit Detects This
CAMAudit extracts the management fee cap from your lease, expressed as a percentage applied to a specified revenue base such as gross revenues, base rents, or another defined metric. CAMAudit also extracts the actual management fee billed from your CAM reconciliation statement to set up the comparison.
CAMAudit's management fee detection rule multiplies the cap percentage by the correct revenue base to calculate the maximum fee your landlord was permitted to charge. When the actual fee exceeds this maximum, CAMAudit flags the difference as a quantified overcharge and includes the specific calculation in the finding: fee charged, fee permitted, and dollar overage.
CAMAudit also checks whether the revenue base used by the landlord in the reconciliation matches the definition in your lease. A common error is applying the fee percentage to gross revenues that include income categories excluded by the lease definition, effectively bypassing the cap without technically exceeding the stated percentage.
Real-World Example
A retail tenant's lease capped the management fee at 4% of base rents. The property's total base rents were $1,200,000. The maximum allowed management fee was $48,000. The landlord billed $67,500, listing it as a "5.625% management fee." CAMAudit calculated the cap: $48,000. Overage: $19,500. The finding report showed the exact math with the lease cap provision cited.
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This rule is evidence, not the end of the journey
Use the rule page to understand the issue, then move back into the proof sequence and the audit flow.
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Need to extract lease terms before your audit?
A CAM audit is only as accurate as your lease data. lextract.io extracts 126 structured fields from any commercial lease PDF: CAM definitions, pro-rata share, caps, base year, and audit rights. So you have the exact terms your landlord is supposed to follow.
Go to lextract.ioThis 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.