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What is a step-up lease?

A step-up lease is a contract that establishes future price increases for the lessee at set times throughout the life of the contract. Step-up leases are meant to protect the landlord from the risks that inflation or a rising market present for a long-term lease.

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 a reappraisal lease?

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.

What is a percentage lease?

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.

What is an escalation clause in a lease?

An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation.

What is a graduated lease agreement?

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.

What is a straight lease?

Straight Lease (Flat Lease) A lease specifying the same, a fixed amount, of rent that is to be paid periodically during the entire term of the lease.

What is included in a triple net lease?

A triple net lease (or “NNN” lease) is a form of real-estate lease agreement where the tenant or lessee is responsible for the ongoing expenses of the property, including real estate taxes, building insurance, and maintenance, in addition to paying the rent and utilities.

What does it mean to be on a lease?

Written or implied contract by which an owner (the lessor) of a specific asset (such as a parcel of land, building, equipment, or machinery) grants a second party (the lessee) the right to its exclusive possession and use for a specific period and under specified conditions, in return for specified periodic rental or ...

Which type of lease allows the property owner to raise rents at will?

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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