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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.
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).
A leasehold estate is an ownership of a temporary right to hold land or property in which a lessee or a tenant holds rights of real property by some form of title from a lessor or landlord. Although a tenant does hold rights to real property, a leasehold estate is typically considered personal property.
A percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. It is a term used in commercial real estate.
Net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees and maintenance costs for a property in addition to rent. Net leases are most commonly used with commercial real estate.
A pass-through lease is a contract where specified operating expenses pass through from the landlord to the tenant. These additional expenses can include any combination of property taxes, insurance, maintenance, repairs and utilities. Pass-through leases can be found in both single-tenant and multi-tenant buildings.
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.
Graduated lease refers to an agreement under which a tenant and landlord agree to a periodic adjustment of monthly payments. In general, this means an increase in the tenant's payments due to either market conditions or an increase in the value of the leased property.
reappraisal lease. A lease in which the rent is adjusted based on an independent appraisal of the value of the property;frequently seen with long-term ground leases.
If you rent under a month-to-month rental agreement, the landlord can raise the rent (or change any other term of the rental arrangement) by giving you the proper amount of notice, which in most states is 30 days.
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