What does a graduated lease involve?

A graduated lease is designed to provide a structured increase in rent over the course of the lease term. This means that the rental payments are predetermined to incrementally rise at specified intervals, such as annually or biannually. This type of lease is beneficial for both landlords and tenants: landlords can anticipate revenue growth while tenants can plan their budgets around known future increases.

The idea behind a graduated lease is to make future rent increases predictable, which helps tenants manage their finances and prepare for the changes. This is distinct from other types of leases that may have fixed rent throughout the lease duration or those that allow for sudden, unscheduled changes, which could create financial uncertainty for tenants. By outlining specific increments in rent, a graduated lease offers a clear framework that reduces ambiguity and potential disputes between landlords and tenants.