Legal Definitions - graduated lease

A graduated lease is a type of lease agreement where the rent amount increases over time based on certain conditions, such as operating expenses or gross income. For example, a commercial property lease may have a graduated rent structure where the rent increases as the tenant's business grows and generates more revenue.

Another example of a graduated lease is a residential lease where the rent increases annually by a fixed percentage. This type of lease is common in rent-controlled areas where landlords are limited in how much they can increase rent each year.

Overall, a graduated lease allows for flexibility in rent payments and can benefit both the landlord and tenant. The landlord can adjust the rent to reflect changes in the property's value or the tenant's ability to pay, while the tenant can plan for future rent increases and budget accordingly.