Minimum Rent Increases during Fixed Term Clause Samples
The "Minimum Rent Increases during Fixed Term" clause establishes that the rent payable under a lease will increase by a specified minimum amount or percentage at set intervals during the fixed term of the agreement. Typically, this means that even if market conditions would otherwise keep rent flat or lower, the tenant is contractually obligated to pay at least the minimum increase, which might be calculated annually or at other agreed periods. This clause provides the landlord with predictable revenue growth and protects against inflation or market stagnation, ensuring that the rental income does not erode in real terms over the course of the lease.
Minimum Rent Increases during Fixed Term. At the commencement of the second (2nd) Lease Year of the Fixed Term and at the commencement of each successive Lease Year thereafter during the Fixed Term, the monthly Minimum Rent shall increase to an amount equal to one hundred two and five tenths percent (102.5%) of the monthly Minimum Rent payable during the last full month of the previous Lease Year.