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What is a step-up lease?
Step rent, also known as step-up rent or step-up lease, is a type of additional rent term found in commercial real estate where the rent increases or decreases at defined periods. It is generally used to simplify accounting by separating out the increases due to inflation into a separate row in the accounts.
Is your rent a stepped rent agreement?
step lease. That provides for increase or decrease in the rent (lease) amount based on an agreed upon formula such as the lessor's expenses associated with the lease or the lessee's sales at the leased property. Also called step up/step down lease.
What is stepped rent agreement?
Step rent, also known as step-up rent or step-up lease, is a type of additional rent term found in commercial real estate where the rent increases or decreases at defined periods. It is generally used to simplify accounting by separating out the increases due to inflation into a separate row in the accounts.
Can my landlord raise my rent before my lease is up?
In general, here are the basics: Unless otherwise stated in your lease agreement, your landlord cannot raise your rent before your lease is up. So, if you have signed a year-long lease, your landlord is only allowed to increase your rent once that 12-month period is up.
What is rent escalation?
Rent escalation is a lease provision in which the landlord requires the tenant to pay a higher aggregate rent by adjusting the annual base rent by an agreed method during the term of the lease agreement. There are two reasons for this. To increase the building's revenue and, therefore, its value.
What is the legal amount a landlord can raise your rent?
A landlord can raise the rent only when your lease expires and with the appropriate amount of notice (if you're month-to-month, the landlord could conceivably increase your rent at the end of any month). Unlike rent-controlled areas, there is no cap on the amount a landlord can increase your rent.
What is an index lease?
A lease agreement in which the amount of future lease payments are calculated using an established index, typically the consumer price index (CPI) whereby an increase in the index will generate a corresponding increase in the lease payment to be applied.
What is index lease in real estate?
Dictionary of Real Estate Terms for: index lease. Index lease. A rental agreement that requires changes in rent based on a published record of cost changes. Example: A landlord makes an index lease with initial rent at $10,000 per year, adjusted annually by the consumer price index (CPI).
What is a net lease investment?
Net Leased Investments are a type of commercial real estate investment common throughout the United States. ... Single Net Lease: Lessee pays a monthly base rent and the property taxes. The owner is responsible for all other operating expenditures of the property.
What is a graduated lease agreement?
A graduated lease is an agreement under which a tenant and landlord agree to a periodic adjustment of monthly payments. For example, the agreement may reflect an increase in the tenant's payments due to market conditions or an increase in the value of the leased property.
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