Property Management Licensing Practice Exam · Question
A property manager for a commercial office tower in Toronto is preparing the annual common area maintenance (CAM) reconciliation for tenants. One tenant disputes a charge for exterior window cleaning, arguing it is a capital improvement. The lease agreement states CAM includes 'all costs associated with the operation, maintenance, repair, and replacement of common areas.' How should the property manager address this dispute?
Routine exterior window cleaning is generally considered a recurring operating expense essential for the maintenance and aesthetic upkeep of a common area, and
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Question: A property manager for a commercial office tower in Toronto is preparing the annual common area maintenance (CAM) reconciliation for tenants. One tenant disputes a charge for exterior window cleaning, arguing it is a capital improvement. The lease agreement states CAM includes 'all costs associated with the operation, maintenance, repair, and replacement of common areas.' How should the property manager address this dispute?
Answer options:
- Remove the charge, as window cleaning is a service, not a maintenance item. ✅ Maintain the charge, classifying it as routine maintenance necessary for building operation.
- Negotiate a reduced payment with the tenant to avoid further conflict.
- Reclassify the charge under a different operating expense category to satisfy the tenant.
Correct answer: Maintain the charge, classifying it as routine maintenance necessary for building operation.
Explanation: Routine exterior window cleaning is generally considered a recurring operating expense essential for the maintenance and aesthetic upkeep of a common area, and thus recoverable under a standard CAM clause.
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