What is the primary feature of a graduated lease?

A graduated lease is characterized by scheduled increases and decreases in rent over the term of the lease. This means that the rent payments are agreed upon in advance and are designed to change at predetermined intervals, allowing landlords to increase rental income without the need for new negotiations every time an adjustment is necessary. These adjustments can be either increases or decreases, depending on the terms of the lease agreement.

This feature benefits both landlords and tenants: landlords can plan for future revenue, while tenants can budget for increases. Unlike a fixed lease, where the rent remains constant throughout the lease term, or a lease simply adjusted for inflation, a graduated lease provides more flexibility and predictability regarding future rent obligations. Thus, the defining aspect of a graduated lease is its structure of planned rent changes, making scheduled increases and decreases its primary feature.