Which lease type usually has an initial rent level with predetermined increases?

A graduated lease is characterized by an initial rent level that is set to increase at predetermined intervals over the course of the lease term. This structure is advantageous for landlords as it allows them to keep pace with inflation or market trends, ensuring that rental income grows over time. Typically, the lease agreement will outline specific dates or conditions under which these increases occur, allowing both the landlord and tenant to plan accordingly.

The graduated lease contrasts with other lease types, such as short-term leases, which tend to have more flexible, often fluctuating terms without guaranteed increases, and gross or net leases, where rent is usually more stable and tied to costs like maintenance and taxes rather than predetermined growth. In summary, the graduated lease’s unique feature of scheduled rent increases makes it the correct choice.