Definition of Graduated lease:
A type of long-term lease characterized by variable payments which are adjusted from time to time in order to reflect current value. Payment amounts can also be tied to an economic benchmark rate, such as the consumer price index.
A graduated lease is an agreement under which a tenant and landlord agree to a periodic adjustment of monthly payments. For example, the agreement may reflect an increase in the tenant’s payments due to market conditions or an increase in the value of the leased property.
A graduated lease tends to benefit the property owner over the long term, but the arrangement offers advantages to both the landlord and the tenant. A graduated lease allows the property owner or lessor the opportunity to charge increased rent as property values increase over time. The tenant or lessee can take possession of a property at what may be a discounted rate in the short term. This can often help during the ramp-up stage of a new business venture.
How to use Graduated lease in a sentence?
- A graduated lease may be a better fit for real estate agreements where values appreciate over time.
- A tenant may be required to pay a higher rent due to market conditions or an increase in the value of the leased property.
- A graduated lease is an agreement between a landlord and tenant, or a lessor and a lessee, that sets out a periodic adjustment of monthly payments.
Meaning of Graduated lease & Graduated lease Definition