A common area maintenance agreement is a legal document that governs the maintenance responsibilities and obligations of property owners and tenants for the common areas of a building or complex. Such areas could include parking lots, hallways, lobbies, elevators, and amenities such as swimming pools and fitness centers.
Usually, the landlord or property management company drafts the CAM agreement, which outlines the specific responsibilities of each party, the scope of maintenance work, and the budget for common area maintenance.
Common area maintenance expenses are generally shared among all tenants in the building or complex in proportion to the square footage of their rented space. The CAM charges typically cover expenses like cleaning, repairs, landscaping, and utilities for the common areas.
It`s essential to review the CAM agreement and understand what it covers before signing a lease agreement. Tenants should pay close attention to the language regarding the frequency of maintenance work, the standard of service included, and any penalties or additional fees for non-compliance.
Landlords and property management companies should ensure that the CAM agreement is fair and reasonable in terms of what is expected of tenants and that it complies with local and state laws. Additionally, the CAM agreement should include provisions for updating the budget and charges on an annual or as-needed basis and provide for dispute resolution procedures.
Failure to adhere to the terms of the CAM agreement can lead to legal consequences, such as fines, lawsuits, or eviction. Therefore, it`s important to keep accurate records of any maintenance work performed and to promptly address any issues that arise.
In conclusion, a common area maintenance agreement is a crucial document for both landlords and tenants, as it ensures that the common areas of a building or complex are adequately maintained and budgeted. Reviewing the CAM agreement and understanding what it covers is essential before signing a lease agreement to avoid any disputes, misunderstandings, or legal issues down the line.