How CAM is charged
Common area maintenance (CAM) recovers the cost of running the shared parts of a building — security, housekeeping, lifts, common-area power and facility staff. In India it is usually charged per sq ft per month on the chargeable area:
Year-end CAM reconciliation
When tenants pay a provisional CAM rate during the year, the actual cost is shared out at year-end and the difference settled:
- Actual rate = actual CAM cost ÷ leased chargeable area ÷ months.
- Your share = actual rate × your area × months.
- Difference = your share − CAM billed. Positive → debit note to the tenant; negative → credit note.
Example: ₹96,00,000 spent on a building with 40,000 sq ft leased over 12 months = ₹20 / sq ft / month. A 3,000 sq ft tenant billed a provisional ₹18 owes 3,000 × ₹2 × 12 = ₹72,000 plus GST.
More detail: CAM charges explained.
Frequently asked questions
How is CAM calculated per square foot?
Multiply your chargeable (often super built-up) area by the CAM rate per sq ft per month. Add GST at 18% if the landlord or facility manager is GST-registered.
What is CAM reconciliation?
At year-end the actual CAM cost is shared among tenants by area and compared with the provisional CAM they were billed. Tenants who underpaid get a debit note; those who overpaid get a credit note.
Who pays CAM for vacant units?
Usually the landlord — but check the lease, since otherwise vacant-area costs can end up spread over occupied area.
Bill and reconcile CAM automatically
LeaseHub360 adds CAM to every invoice with GST and settles year-end differences with credit and debit notes.