What Are CAM Charges? Common Area Maintenance Explained
Buy a shop in a mall or an office in a business park, and your monthly bill has a line most first-time buyers do not expect: CAM charges. These pay for the upkeep of all the shared spaces you use every day. They can add a lot to your cost, so it pays to understand them. This guide explains what CAM charges are, what they cover, and how they are calculated.
What CAM charges mean
CAM stands for Common Area Maintenance. CAM charges are the fees paid by owners or tenants to keep the shared parts of a building or complex clean, safe and running. This includes the lobby, corridors, lifts, parking, gardens, security and common lighting. In malls, office parks and large commercial buildings, CAM is a regular charge, usually billed per square foot of your unit. In housing societies, the same idea is often called maintenance charges.
What CAM charges cover
- Cleaning and housekeeping of lobbies, corridors, toilets and common areas.
- Security staff, cameras and access control.
- Electricity for common lighting, lifts and pumps.
- Lifts and escalators running and servicing.
- Air conditioning of common areas in malls and offices.
- Water supply and drainage for shared use.
- Landscaping and pest control of gardens and grounds.
- Repairs and management of the common property.
How CAM charges are calculated
CAM is usually charged as a rate per square foot of your unit, billed monthly or yearly. If the CAM rate is 20 rupees per square foot per month and your shop is 500 square feet, your CAM is 10,000 rupees a month. The rate depends on the building, the level of amenities, and the running cost of the common areas. High-end malls and Grade A offices have higher CAM because they run central air conditioning and heavy services.
| Unit size | CAM rate per sq ft | Monthly CAM |
|---|---|---|
| 500 sq ft | 20 rupees | 10,000 rupees |
| 1,000 sq ft | 25 rupees | 25,000 rupees |
CAM in commercial versus residential
CAM is most common in commercial property such as malls, offices and business parks, where it can be a large monthly cost. In housing societies, the same upkeep is covered by maintenance charges collected by the resident association. The idea is the same: everyone shares the cost of running the common areas. Read our guide on society maintenance charges and RWA rules for the residential side.
What to check before you buy or lease
- Ask the CAM rate. Know the per square foot rate and how often it is revised.
- See what it covers. Get a clear list of the services included in CAM.
- Check who manages it. A professional facility manager usually runs a tight, transparent CAM.
- Factor it into returns. For an investment, high CAM eats into your rental yield. See our rental yield guide.
Frequently asked questions
What are CAM charges?
CAM stands for Common Area Maintenance. They are fees paid to keep the shared parts of a building, such as lobbies, lifts, parking and security, clean, safe and running.
What do CAM charges cover?
Cleaning, security, common electricity, lift and escalator upkeep, common air conditioning, water and drainage, landscaping, pest control and management of shared areas.
How are CAM charges calculated?
Usually as a rate per square foot of your unit, billed monthly or yearly. A 500 square foot shop at 20 rupees per square foot pays 10,000 rupees a month.
Are CAM charges the same as maintenance charges?
They are the same idea. CAM is the term used in commercial buildings, while housing societies usually call the same upkeep maintenance charges.
Who pays CAM charges, the owner or the tenant?
In a leased unit, the tenant usually pays the CAM as part of the occupancy cost, but this is set by the lease terms. In an owned unit, the owner pays.
Why are CAM charges higher in malls and offices?
Because they run central air conditioning, escalators, heavy security and constant housekeeping over large common areas, which cost more to maintain.
Are CAM charges fixed or do they change?
They can be revised, usually yearly, based on the actual running cost of the common areas and inflation in service costs.
Do CAM charges affect my rental yield?
Yes. High CAM reduces the net return on a commercial investment, so factor it in when you calculate your rental yield.
Is GST charged on CAM?
CAM charges on commercial property usually attract GST. Confirm the applicable rate and terms with the building management.
What is the difference between CAM and rent?
Rent is what you pay to use the unit. CAM is the extra charge to maintain the shared common areas of the building.
Can I negotiate CAM charges?
The rate is often set by the building, but on a lease you can discuss whether CAM is capped or how it is revised. Clarify this before signing.
Are CAM charges refundable?
No. CAM covers ongoing running costs and is not refundable, unlike a security deposit.
Do residential flats have CAM charges?
Flats pay society maintenance charges, which cover the same kind of upkeep. The term CAM is mostly used for commercial buildings.
What happens if I do not pay CAM charges?
Unpaid CAM can lead to penalties, and the management can restrict access to services or take action as per the agreement.
CAM charges are a real, ongoing cost of owning or leasing commercial space, so ask for the rate and the service list up front. Explore verified commercial properties and factor CAM into your budget.
