Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Common Area Maintenance: Charges paid by the tenant for the upkeep of areas designated for use and benefit of all tenants. CAM charges are common in shopping centers. Tenants are charged for parking lot maintenance, snow removal, and utilities.
Lesson Nugget: In a gross lease tenants are not required to pay any CAM fees. In a triple net lease tenants are required to pay all operating costs.
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-All right, we're here with Michael "there is no real estate topic too obscure" Burer, talking about one of his favorite subjects, a subject that he's deeply passionate about, a subject we could all connect with. It's called CAM. Cam Newton? No, CAM-- common area maintenance. I'm going to read the definition. He's going to tell you an example. And here we go on Thrive15.com, an alternative to lynda.com .
Common area maintenance-- charges paid by the tenant for the upkeep of areas designated for use and benefit of all tenants. CAM charges are common in shopping centers. And tenants-- that's business owners who are leasing space-- are charged for parking lot maintenance, snow removal, and utilities. Give me an example of what CAM is or how I might see it on my bill if I'm a typical business owner.
-So this is the cost of running the project often. So it's the security, it's the landscaping. And often, landlords would charge this back in addition to the base rent, that each tenant would pay their percentage share of those costs to run the whole complex.
-Talk to me about triple net leases for a second. I hear a lot of thrivers who are emailing. I get a lot of questions. They're saying, I've got a triple net lease. What does this mean? How does this affect how much I pay in common area maintenance? So triple net lease-- talk to me about what that means and how that relates to common area maintenance costs.
-So there's just different types of leases. Gross leases means that the tenant doesn't pay any reimbursements or any common area expenses, not with a gross lease.
At the other end of the extreme, you have triple net leases, where the tenants are paying all of those operating costs, 100 percent of them. And those are more typically found in retail leases, but although it varies based on the geographical area.
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