Hi BP,
I manage a multi-tenants retails and tenants have been paying an estimated $7/sf/yr for NNN. So last year 2021 the previous PM did the CAM reconciliation for 2020 and the actually NNN was supposed to be $10. So he sent invoices to them for the $3 they still owe us. Well, he never followed up with them so by now we still have 2 tenants who don't pay yet. And 2021 CAM reconciliation is coming up. I now want to train them to always pay on time or there will be consequences to pay (and that I am a totally different from previous PM).
What do you guys think of this situation? I know these 2 tenants can totally pay. They just choose not to pay since previous PM never did anything to them. So I want to say and reinforce that if they pay late I will make them pay late fee from now on. Problem is, from reading the lease it says that CAM charges are treated as 'additional rent' so should be paid and treated same way as rent (that means there are penalty and interest charges for paying late, and it's due on the first day of each month) but it doesn't say anything about what we can do if tenants paid the deficiency CAM for the previous calendar year late. I don't want to say and do something that is not allowed (that is, to charge them late fee for paying deficiency CAM amount since the lease doesn't actually say it), or give empty threats (that is, to tell them that if they don't pay by an XX date then there will be a YY late fee but then will never reinforce it). Any of you guys out there have been dealing with this situation and how did you handle it?
Any input is greatly appreciated. Thanks!