RENT ESCALATION CLAUSE Sample Clauses
A rent escalation clause is a provision in a lease agreement that allows for periodic increases in the rent amount over the term of the lease. Typically, this clause specifies the timing and method of rent adjustments, such as annual percentage increases, adjustments based on inflation indices, or predetermined step-ups. Its core practical function is to ensure that the rental income keeps pace with market conditions or rising costs, thereby protecting the landlord from the effects of inflation and providing predictability for both parties.
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RENT ESCALATION CLAUSE. Rent each year to increase, as per Addendum A, attached hereto and made a part hereof. Each preceding year to become the base year for the following year, and the rent shall increase 3% over the last base year. The rent to be computed at each yearly anniversary date of this Lease, and the increase payable upon the Tenant's receipt of statement. Base year's initial anniversary date is April 2004.