A tenant's share of a property's real estate tax, CAM and insurance depends on three things: the property budget, the tenant's pro-rata share of the property, and the terms of the tenant's lease. This article explains where each of those is set and how UnitConnect uses them.

The calculation basis for each tenant

Each tenant has a basis for Real estate tax, CAM and Insurance, set on the tenant's lease under NNN Passthroughs. To change it, open the tenant's lease and click Edit passthroughs. See NNN passthroughs for the steps.

The three bases are:

  • Pro Rata Share: the tenant pays their pro-rata share of the budget (or of actual expenses at reconciliation). Most NNN leases work this way. The percentage is the pro-rata share on the tenant's lease.
  • Base Year Increase: the tenant pays only their share of the increase over a base-year amount. Enter the base year's total as the Base-year amount ($).
  • Flat Rate: the tenant pays a fixed annual amount no matter how costs change. Enter that annual amount as the Base-year amount ($).

A tenant who isn't responsible for one of the three pays nothing for it.

Admin and late fees

An admin fee and a late fee are part of the tenant's lease terms. Open the tenant's lease, click Edit lease terms, and under Admin fee choose the Type (a flat amount or a percentage) and the Amount. The admin fee for each tenant appears in the Admin column of the property's Reconciliation view.

Fiscal years

When the property's tax, CAM or insurance year doesn't run January to December, set its start date under Fiscal year on the property's Settings tab. The fiscal years decide how NNN budget amounts are split into periods.

CAM exclusions and limits by category

Some leases exclude a category from CAM (for example, management fees) or cap it (for example, snow removal not to exceed a set amount). If a tenant already has category-level exclusions or limits on record, click the tenant on the property's Reconciliation view: they're listed under NNN config with each category and its percentage or amount. See Perform a CAM reconciliation.

Note

The modern app doesn't have a screen yet for adding, changing or deleting category-level CAM exclusions and limits. Existing ones are kept. To change them, contact UnitConnect support.

See the result

To check what each tenant should pay under their configuration, open the property's Budget tab and select Tenant Charges. Click a tenant to see their basis, base amount and computed share. See Set tenant NNN charges from the budget.