In a graduated lease, how does the rent amount change?

In a graduated lease, the rent amount changes according to a predetermined and fixed schedule, typically outlined in the lease agreement. This means that the tenant and landlord agree on specific intervals, such as yearly increments, where the rent will increase by a set amount or percentage. This provides clarity for both parties regarding future rental expenses and helps the tenant to budget accordingly.

The fixed nature of this schedule distinguishes a graduated lease from other forms of leasing, where rent might fluctuate based on market conditions or remain constant throughout the entire lease term. A graduated lease offers the advantage of predictability in rent increases, allowing tenants to anticipate changes rather than facing potentially unexpected costs.