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Examples of services often billed to tenants as CAM charges include portering, parking lot striping, parking lot lighting, and landscaping.CAM charges can be broken into two subcategories—controllable and uncontrollable.Caps can be cumulative or compounded, and calculated year-over-base or year-over-year.Year-over-base caps allow the cap to raise each year by a certain, predetermined percentage of a pre-determined, initial (base) CAM charge.The estimate is created from a property's budget by the property manager.After the fiscal year ends, an audit is done of the paid CAM charges versus the actual CAM charges, and the difference is either paid to the landlord, or the tenant.

A floor will budget in a minimum increase in the charges, with the expectation that it will lessen a more major increase in the future.Year-over-year caps mean the percentage increase applies not to a base amount, but to the actual CAM charge of the previous year.Cumulative caps allow the yearly percentage increase of the CAM Cap to accumulate.This can make it difficult for both the tenant and landlord to predict their future cash flows with any accuracy.To address this, some leases include "cap" and "floor" terms which limit these changes to fixed values on a year-over-year basis.

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