Routine maintenance of exterior grounds including mowing, pruning, mulching, irrigation upkeep, and seasonal planting in common areas.
Key Takeaways
| Lease Type | Recoverable? | Controllable? |
|---|---|---|
| NNN | Yes | Yes |
| Modified Gross | Yes | Yes |
| Full-Service Gross | No | Yes |
CapEx Risk: This line item is commonly used to disguise capital expenditures as operating expenses. Verify all invoices against GAAP standards.
Approximate budget share: 3-5% of total CAM pool.
Landscaping and grounds care covers the routine upkeep of all exterior common areas, including mowing, edging, pruning, mulching, seasonal planting, and irrigation system inspections. Under a standard NNN or modified gross lease, tenants pay a pro-rata share of these costs as part of the annual CAM reconciliation. The key distinction that drives disputes is the line between routine maintenance and capital improvement. Routine work preserves the current condition of the property; capital work extends its useful life or materially upgrades it. Tree removal, hardscaping installation, irrigation system overhauls, and full landscape redesigns all fall on the capital side of that line and should either be excluded from CAM entirely or amortized over their useful life under GAAP. Lease language varies significantly: some leases cap landscaping as a controllable expense, meaning the landlord cannot pass through year-over-year increases beyond a defined percentage. Tenants should review their lease for a controllable expense definition and cross-reference the landscaping line item against the prior-year base. Any single-year spike above the cap percentage, or any invoice referencing installation or replacement, is grounds for a formal written dispute.
Overcharge Risk
$3,000-$18,000/year
typical annual overcharge when this line item is disputed
Landlords bill tenants for massive tree removal, full landscape redesigns, or installation of decorative hardscaping - all capital replacements disguised as routine upkeep.
This line item is commonly used to disguise capital expenditures as operating expenses. Capital expenditures must be excluded from CAM or amortized over their useful life per GAAP. If you see unusually high or one-time charges in this category, request all invoices and scope-of-work documentation before paying.
| Legitimate Charge | Suspicious Charge |
|---|---|
| Monthly mowing, edging, and leaf removal by a third-party vendor | Annual "landscape renovation" billed as routine maintenance |
| Seasonal mulching and flower bed upkeep at consistent rates | Tree removal or hardscaping installation billed as a maintenance line item |
| Irrigation system inspections and minor component repairs | Full irrigation system replacement billed in a single reconciliation year |
| Competitively bid landscaping contract with itemized scope | Flat round-number monthly invoice from a vendor related to the landlord |
Request vendor invoices and scope of work. Challenge any line item that extends the useful life of the property rather than maintaining its current condition. Capital replacements must be excluded or amortized per GAAP.
Check Your Landscaping & Grounds Care Charges
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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.
