If you are in the real estate property management business, you must know that preparing a CAM reconciliation at the end of the year is necessary. However, it’s also a highly complex thing to do for many landlords.
As the estimated standard maintenance charges set initially, most of the time differ from the actual expenses incurred, it becomes the landlord’s responsibility to provide their tenants with a CAM reconciliation statement to verify the costs.
But, doing all this manually is difficult and time-consuming. To save their time, the landlords seek to outsource the service. Different softwares are available in the market to help them. Picking the right software is essential.
The best way to get rid of this headache is to use the Yardi CAM Reconciliation. Read on to know why you should go with it.
Why Preparing a CAM Reconciliation Is Challenging?
Usually, an amount is set for the CAM charges in the lease agreement. But due to specific reasons, including pro rata share, building security, unexpected events, etc expenses vary. Preparing a reconciliation and determining each expense in the end is a tough job.
In the CAM reconciliation process, the actual common area expenses are calculated and compared to the charges that the tenant paid as additional expenses at the time of the lease agreement. If the actual costs calculated are more than the budgeted ones, the tenants are entitled to pay those additional costs.
For any extra cost included in the reconciliation, tenants get dissatisfied. And, this sometimes leads to disputes or unnecessary arguments. The tenants may even accuse their landlord of fraud or scam.
How Is Yardi CAM Reconciliation Beneficial for You?
You can use Yardi Breeze or Yardi Voyager Commercial to facilitate your task. They have a trained professional team to provide you with the best financial service.
1. Transparency of Expenses
The common area management fees are calculated on a pro-rata basis. Landlords are, therefore, supposed to present precise details of expenses shared and other maintenance costs incurred during the year.
Yardi CAM reconciliation manages to bring transparency to the process and fosters a healthy tenant-landlord relationship.
Once tenants clear their doubts, they are more likely to renew their lease and contribute to a positive reputation for property management.
2. Cost Accuracy
In manual tasks, there are more chances of errors and wrong entries. Yardi CAM reconciliation software minimizes the risk of such mistakes and maintains financial integrity. It ensures that all expenses are allocated.
3. Saves Time
An automated reconciliation process ultimately saves the landlord’s or the property manager’s time. Instead of indulging in tiring manual tasks, they can rather focus on planning new strategies.
4. Accurate Auditing
The Yardi software for CAM reconciliation provides timely details on payments, bills, and fees. It also points out any irregularities in the financial proceedings. After getting a detailed insight into your CAM system it suggests essential strategies to be followed.
Property managers can easily demonstrate the accuracy of their financial records during these audits.
5. Forecasting and Planning
Once the software fixes all the loopholes in the reconciliation statement, the expert team formulates further strategies and helps property managers in decision-making.
Main Features of Yardi CAM Reconciliation
Check out some essential features of this automated CAM reconciliation:
Automated Data Integration- Yardi CAM reconciliation ensures that all expenses are automatically and accurately updated and provides a seamless integration with your project management system.
Real-Time Updates- It provides a real-time update on every transaction. So, property managers can easily monitor the expenses as they occur.
Allocation of Expenses- The software helps allocate all the common maintenance expenses among tenants based on their pro-rata share. The process of cost distribution for shared spaces is streamlined according to the lease agreements.
Management of Essential Documents- All documents related to CAM expenses are automatically collected, stored, and organized by a centralized management system.
Tenant Portals- Yardi CAM software provides a tenant portal for all tenants where they can collect any information relating to the lease agreement, common area expenses, and reconciliation details. It also facilitates a platform for the parties to communicate and improve their relations.
Reporting- It not only prepares the reconciliation statement of CAM expenses but also reports it to the tenant via. Mail. Property managers can also extract insights for any decision-making.
Adopt Yardi CAM Reconciliation for Better Performance
Considering all the features and benefits of Yardi CAM Reconciliation, it is clear that it is a perfect tool for optimizing the financial management of any commercial real estate property.
Yardi provides the landlord with a transparent, accurate, and tenant-friendly property management experience. It helps navigate the complexities of CAM reconciliation and maintain a good tenant-landlord relationship.