STEP LEASE Meaning and
Definition
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A step lease is a type of rental agreement that involves incremental increases in rent over a specific period, typically every few years. It is a contractual arrangement between a landlord and a tenant, outlining the terms and conditions of the lease. The concept of a step lease is primarily used for commercial properties, although it can occasionally be seen in residential leases as well.
A step lease typically includes predetermined step-ups or step-downs in the rental amount, often based on a fixed percentage or a pre-established amount. These rent increases or decreases occur at predetermined intervals, such as annually or every three to five years, and are agreed upon by both parties before the lease begins.
This type of lease structure allows for gradual adjustments in rental payments, providing stability for both the tenant and the landlord. For tenants, step leases offer the advantage of knowing the future rent increases in advance, enabling them to plan their finances accordingly. Landlords, on the other hand, benefit from the reassurance of predictable rental income and the ability to adjust for inflation or changes in the real estate market over time.
In summary, a step lease is a rental agreement that involves periodic, predetermined rent increases or decreases at specified intervals. It offers stability and predictability to both landlords and tenants, ensuring a gradual adjustment of rental payments over the lease term.
Common Misspellings for STEP LEASE
- atep lease
- ztep lease
- xtep lease
- dtep lease
- etep lease
- wtep lease
- srep lease
- sfep lease
- sgep lease
- syep lease
- s6ep lease
- s5ep lease
- stwp lease
- stsp lease
- stdp lease
- strp lease
- st4p lease
- st3p lease
- steo lease
- stel lease
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