Increases in Annual Rent Clause Samples
The "Increases in Annual Rent" clause establishes the conditions under which the rent amount for a leased property will rise over time. Typically, this clause specifies the frequency and method of rent adjustments, such as annual percentage increases, fixed dollar amounts, or adjustments tied to an inflation index. By clearly outlining how and when rent will increase, the clause provides predictability for both landlord and tenant, helping to prevent disputes and ensuring that the rental income keeps pace with market changes or inflation.
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Increases in Annual Rent. Subject to the limitation in Paragraph (c) of this section, Annual Rent shall also be increased each year in which the Consumer Price Index increases, with the increases to be effective with the monthly payment due in July, and the increase shall be based on the following calculation: In June of each year, starting with June of 2016, if the Current Price Index (hereinafter defined) for June of the then-current year shall be greater than the Base Price Index (hereinafter defined), then the Annual Rent shall be increased by an amount equal to the product obtained by multiplying (i) the percentage difference between the Current Price Index and the Base Price Index by (ii) the rent from the then-current year. As used in this section:
Increases in Annual Rent. Commencing at the end of the fifth (5th) Lease Year after the Effective Date, and on each fifth (5th) anniversary of such date thereafter during the term of this Lease (and any extension thereof), Annual Rent shall be increased by an amount equal to _______ percent (__%) of the Annual Rent payable during the immediately preceding Lease Year.
Increases in Annual Rent. At the beginning of each year after year one (1) of the Term. Annual Rent shall also be increased each year by two and one half percent (2.5%) of the previous year’s rent, with the increases to be effective with the monthly payment due in November. Such rental amounts for years 2 through 7 arc as follows: Year Beginning Annual Lease Amount Monthly Payment 11/01/2016 $ 102,500.00 $ 8,541.67 11/01/2017 $ 105,062.50 $ 8,755.21 11/01/2018 $ 107,689.06 $ 8,974.09 11/01/2019 $ 110,381.29 $ 9,198.44 11/01/2020 $ 113,140.82 $ 9,428,40 11/01/2021 $ 115,969.34 $ 9,664.11
Increases in Annual Rent. Commencing at the end of the fifth (5th) Lease Year after the Annual Rent Commencement Date, and on each one (1) year anniversary of such date thereafter and through the fifteenth (15th) Lease Year during the term of this Lease, Annual Rent shall be increased by an amount equal to the previous year's Annual Rent multiplied by seventy percent (70%) of the percentage increase in the Base Index as herein defined for the previous twelve (12) month period, in accordance with only positive changes in the Base Index, subject to a maximum annual increase of no more than one and three quarters percent (1.75%). For purposes of this Lease, "Base Index" shall be defined as the Consumer Price Index for U.S. City Average, all Urban Consumers on the 1982-1984 = 100 base published by the Bureau of Labor Statistics, U.S. Department of Labor. If the Base Index is discontinued or revised during the term hereof, such other government index or computation with which it is replaced by the Bureau of Labor Statistics shall be used in order to obtain substantially the same result as would be obtained if the Base Index has not been discontinued or raised, and if the Base Index is not so replaced, Landlord shall adopt a substitute index or substitute procedure which reasonably reflects changes in the purchasing power of the U.S. Dollar. At the end of Lease Years sixteen (16) through twenty (20) and additionally at the end of each Lease Year during any Lease renewal option periods, the Annual Rent increase shall be equal to previous year's Annual Rent multiplied times fifty percent (50%) of the percentage increase in the Base Index for the previous twelve (12) month period, in accordance with only positive changes in the Base Index, subject to a maximum Annual Rent increase of no more than one and one quarter percent (1.25%).
Increases in Annual Rent. Annual Rent shall also be increased each year by two and one half percent (2.5%) over the Annual Rent charged for the previous year, with the increases to be effective with the monthly payment due in October of the succeeding year of the Term of this Lease.