How do I know which parcel number my lease covers?

Your lease should include a legal description of the premises or a reference to a specific parcel identification number (APN). If not, the property tax records for your building's address will show the parcel breakdown. Request the actual tax bills from your landlord as part of your audit to verify which parcels were included.

Are special assessment districts legitimate CAM charges?

Special assessments such as Mello-Roos, business improvement districts, and landscape assessment districts are only legitimate CAM charges if your lease explicitly authorizes them. Leases signed before these assessments were created often do not include them. The specific language in your lease controls whether these charges are pass-through eligible.

Can my landlord charge me for tax penalties and interest?

Generally no. Tax penalties and interest result from the landlord's failure to pay taxes on time and represent an administrative failure, not a legitimate operating expense. Most courts and arbitrators have found these charges impermissible even when the lease does not explicitly exclude them.

Classification Rule

Tax Overallocation: How Landlords Bill You for Properties You Do Not Lease

Q: What if my building was recently reassessed?

A reassessment can increase taxes significantly. Your lease should specify how reassessment-related tax increases are handled. Some leases exclude increases from supplemental assessments triggered by the landlord's sale of the property. If the building changed hands during your lease term, check whether the post-sale reassessment increase is pass-through eligible under your specific lease language.

Angel Campa, FounderCAMAudit

Last updated: April 2026

If your landlord allocated real estate taxes from parcels outside your leased property or included special assessments your lease does not authorize, you are paying someone else's tax bill. Mello-Roos bonds and special improvement assessments routinely add $3,000 to $10,000 to CAM statements without explicit lease authority.

Definition

Tax Overallocation

Tax overallocation occurs when a landlord charges a tenant for real estate taxes that do not correspond to the property parcel or parcels covered by the tenant's lease, or includes tax categories such as special assessments, penalty interest, or improvement bonds that are excluded from pass-through under the lease terms. Commercial leases allow tax pass-throughs only for the specific assessments tied to the leased premises and related common areas, not for other properties in the landlord's portfolio or for assessment types not named in the lease. Special improvement district assessments, Mello-Roos bonds, and supplemental assessments triggered by the landlord's sale of the property each require explicit lease authorization before they can be passed through. CAMAudit's tax overallocation detection rule extracts the property description and parcel information from the lease, compares it to the tax assessments included in the reconciliation, and classifies each tax line item for both parcel accuracy and category compliance.

How CAMAudit Detects This

CAMAudit extracts the property description and parcel identification information from your lease and compares it to the tax assessments included in your reconciliation. CAMAudit's tax overallocation detection rule flags tax charges that reference parcel numbers or property addresses beyond the scope of your lease's defined premises.

CAMAudit classifies each tax line item for category compliance: standard ad valorem property taxes, special improvement district assessments, Mello-Roos bonds, penalty interest, and transfer taxes each have different pass-through eligibility rules. Special assessments require explicit lease authorization and are frequently included in CAM without it.

CAMAudit generates a finding that lists each flagged tax item, the parcel or assessment type, and the dollar amount. CAMAudit's output includes specific documentation request language for your audit rights letter: the actual tax bills, the parcel breakdown, and the supporting assessment notices your landlord must produce.

Real-World Example

A tenant's lease covered Unit 4 in a retail center on Parcel A. The annual CAM reconciliation allocated real estate taxes of $41,000 across the entire center. A review showed the tax bill included $8,200 attributable to Parcel B (an adjacent parking structure owned by the same landlord) and a $3,100 special assessment for a street improvement district. Neither the Parcel B allocation nor the special assessment was authorized by the lease. CAMAudit flagged $11,300 in potential overcharges.

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This 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.

Tax Overallocation: How Landlords Bill You for Properties You Do Not Lease

Angel Campa, FounderCAMAudit

Last updated: April 2026

How CAMAudit Detects This

Real-World Example

Free scan · No account required

Upload your lease. CAMAudit runs 14 detection rules in under 15 minutes.

Scan My Lease Now

See a sample report first

Frequently asked questions

Free scan · No account required

Find overcharges in your CAM reconciliation. Most audits complete in under 15 minutes.

Scan My Lease Now See a sample report first

Need to extract lease terms before your audit?

Go to lextract.io

This 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.