What do common area maintenance (CAM) fees typically cover?

Prepare for the RECA Property Management Exam with multiple choice questions that offer hints and explanations. Ace your exam!

Common area maintenance (CAM) fees are typically used to cover the costs associated with the maintenance and operation of shared property areas. These shared areas can include hallways, lobbies, parking lots, landscaping, and other amenities that benefit all tenants and visitors of a property. The purpose of CAM fees is to ensure that these common spaces are kept in good condition and remain functional for all users.

By pooling resources through CAM fees, property managers are able to maintain a high standard of cleanliness, safety, and overall appearance in these shared areas, which can enhance the value of the property and the experience for all tenants. This covers regular maintenance tasks such as cleaning, landscaping, and repairs, as well as administrative costs related to managing these facilities.

In contrast, other options described—such as utility costs for individual units or improvements to individual tenant spaces—are specific to individual tenants and do not fall under the umbrella of common area maintenance. Security services might be part of CAM fees depending on the arrangement, but they are not universally included. Thus, the focus of CAM fees is primarily on the upkeep of shared spaces rather than individual unit services or enhancements.

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