NNN Charges (Tax, CAM, and Insurance) can be easily calculated and added to a tenant's bill. To configure CAM, you need to open the Rent Details Page. Do so by clicking on Properties in the Top Navigation Bar. Then, select the desired property and tenant on the left and right tables, respectively. Lastly, click on Rent Details in the Actions Menu.
You can choose how to calculate each tenant's CAM based on the lease terms. There are three options:
- Base Year Increase: When your property's Taxes and Insurance eventually increase and you want the NNN charges to escalate as well, then choose this option. Just enter the Base Year amount under the Base Year column. UnitConnect will calculate Tenant's due by subtracting the Base Year Amount from the Current amount and then determine how much that tenant will pay using his ProRata share.
- ProRata Share: Select this option if you want to charge the tenant based on the ProRata share alone. (Most NNN leases use ProRata Share.)
- Flat Rate: The flat rate that you enter is what the tenant will always pay, regardless of any increase. if this option is selected, then the Base Year amount should have the total Annual Amount tenant should be responsible for.
You can also have admin and late fees be added to the tenant's bill by selecting the respective checkboxes. Then you select a fee type which could be either a flat rate or percentage. Just enter the flat rate or percent that you wish to be charged to the tenant (ex. 5% or $150).
Admin fee is a percentage then the total admin fee is calculated by multiplying the Tenant's CAM obligation by the indicated percentage amount. (ex: Tenant's total CAM annual obligation is $10,000 and Admin fee is 5%, then Tenant's total Annual Admin fee would be $500)
You can also set specific CAM exclusions or limits based on the Tenant's lease by clicking Configure CAM. A table will pop up with a list of existing CAM Charges, as well as a dropdown list to add more. Let's go through adding and deleting these exclusions based on Category.
- Add a Category: To add a Category to the exclusion or limit, click on the dropdown list and select the desired category, then click Add (ex. snow removal). Then select one of the four exclusion or limit types (ex. Not To Exceed), and enter the respective value (ex. $150). Here are the four pricing options:
- Flat Rate: A specified price that won't go up or down
- Percentage: A specified percentage
- Not to Exceed: The charge to the tenant won't exceed a certain amount
- Base Year Increase: The charge to the tenant will increase based on the rent details
- Delete A Charge: To delete a charge, simply check one or more off and click Delete.
You may edit the Charge type and amount whenever you wish. Click Save to save the changes you made, or Cancel to cancel them.
When a tenant has any custom exclusions or limits to their CAM, the CAM Reconciliation report will reflect these limits as Deductions from Tenant's CAM Reconciliation report. By way of example, if the lease excludes Management Fees from Common Area Maintenance charges then the Tenant Configuration should Contain a record for Management fees with Percentage set to 0%. The CAM Reconciliation process will therefore deduct Management Fees from tenant's CAM Reconciliation statement.