Rental Adjustment Clause Samples
A Rental Adjustment clause defines the process and conditions under which the rent amount in a lease agreement may be changed during the term of the lease. Typically, this clause outlines the timing and method for reviewing and adjusting rent, such as annual increases based on a fixed percentage, changes tied to inflation indices, or market rent reviews. Its core practical function is to ensure that the rental payments remain fair and reflective of current market conditions or economic factors, thereby protecting both the landlord’s and tenant’s interests over time.
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Rental Adjustment. (a) Tenant shall pay to Landlord as additional rental a rental adjustment (the "Rental Adjustment") which shall be determined as of the first anniversary of the Rental Commencement Date and as of each January 1 thereafter during the Lease Term in the manner hereinafter provided (each such date being hereinafter in this Article 7 called an "Adjustment Date", and each period of time from any given Adjustment Date through the day before the next succeeding Adjustment Date being herein called an "Adjustment Period"). Each such Rental Adjustment shall be payable in monthly installments in advance on the first day of every such calendar month during the Adjustment Period for which such Rental Adjustment was determined. A prorated monthly installment, based on the number of days in the partial month, shall be paid for any fraction of a month if the Rental Commencement Date falls on any day other than the first day of a calendar month, or if the Lease Term is terminated or expires on any other day than the last day of a calendar month. Landlord shall use reasonable efforts to notify Tenant in writing of the monthly amount of the Rental Adjustment for each Adjustment Period at least ten (10) days prior to the date on which the first installment of such Rental Adjustment is due and payable, or as soon thereafter as is practicable. Failure by Landlord to notify Tenant of the monthly amount of such Rental Adjustment shall not prejudice Landlord's right to collect the full amount of such Rental Adjustment, nor shall Landlord be deemed to have forfeited or surrendered its rights to collect such Rental Adjustment which may have become due pursuant to this Article 7, and Tenant agrees to pay within thirty (30) days after notice all accrued but unpaid Rental Adjustment.
(b) For each Adjustment Period, each monthly installment of the Rental Adjustment shall be an amount equal to one-twelfth (1/12th) of the product of: (i) the annual Base Rental set forth in Article 6 hereof, multiplied by (ii) .50, multiplied by (iii) the "percentage increase" (as hereinafter defined), if any, in the "index" (as hereinafter defined), as such percentage increase is determined with respect to the Adjustment Date beginning such Adjustment Period.
(c) For purposes of Articles 7(a) and (b) above, the "percentage increase," if any, in the Index for each Adjustment Date shall mean and equal the quotient (expressed as a decimal) determined by dividing (i) the difference obtained by subtracting the ...
Rental Adjustment. The lesser of (i) 2.00%, or (ii) 1.25 times the change in the Price Index, as described in Section 4.02.
Rental Adjustment. The monthly Base Rent payable hereunder shall be adjusted as of April 1, 1996 and as of April 1 of each successive year (each such date herein called a "Rental Adjustment Date") during the term of this Lease to reflect any changes in the cost of living. The adjustment or adjustments, if any, shall be calculated upon the basis of the United States Department of Labor, Bureau of Labor Statistics CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, FOR SAN FRANCISCO-OAKLAND-SAN JOSE (1982-84=100), hereafter referred to as the "Index". The Index for said subgroup most recently published as of April 1, 1995 shall be considered the "base". On the first Rental Adjustment Date, the monthly Base Rent shall be adjusted by the percentage increase, if any, in the Index as of the Rental Adjustment Date, over the base. On each subsequent Rental Adjustment Date, the monthly Base Rent (as previously adjusted) shall be further adjusted by the percentage increase, if any, in the Index as of the Rental Adjustment Date over the Index as of the preceding Rental Adjustment Date. When the Base Rent is determined upon the Rental Adjustment Date, Landlord shall give Tenant written notice to that effect indicating how the new Base Rent figure was computed in accordance with this paragraph. If the Index does not exist on any Rental Adjustment Date in the same format as referred to in this paragraph, Landlord shall substitute in lieu thereof an index reasonably comparable to the Index referred to above which is then published by the Bureau of Labor Statistics, or by a successor or similar governmental agency, or, if no governmental agency then publishes an index, Landlord shall substitute therefor any commonly accepted index designed to reflect changes in the cost of living which is published by a reputable private organization.
Rental Adjustment a. For the purposes of this Paragraph 6, the following terms are defined as follows:
Rental Adjustment. (a) For the purpose of this Article 4, the following terms are defined as follows:
Rental Adjustment. ▇▇▇▇▇▇ County may adjust rents in its sole discretion and agrees to give Tenant thirty (30) calendar days’ prior written notice of an adjustment.
Rental Adjustment. (a) The following terms shall have the following meanings:
(i) The term “Expenses” shall mean the actual reasonable cost incurred by Landlord during the applicable calendar year on an accrual basis with respect to the operation, maintenance and repair of the Development, including, without limitation or duplication, (1) the costs incurred for air conditioning; mechanical ventilation; heating; cleaning; rubbish removal; snow removal; general landscaping and ground maintenance; window washing; elevators; ▇▇▇▇▇▇ and matron services; electric current for common areas; management fees (calculated at a rate of five percent of gross receipts); repairs; maintenance; fire, extended coverage, boiler, sprinkler apparatus, public liability and property damage insurance (including loss of rental income insurance); supplies; wages, salaries and benefits of service and maintenance employees and management staff (if said employees and/or staff perform services for properties other than the Development, the expenses relating thereto shall be equitably prorated); uniforms and working clothes for such employees and the cleaning thereof; expenses imposed pursuant to any collective bargaining agreement with respect to such employees; payroll, social security, unemployment and other similar taxes with respect to such employees; sales, use and other similar taxes; water rates and sewer rents; depreciation of movable equipment and personal property, which is, or should be, capitalized on the books of Landlord, and the cost of movable equipment and personal property, which need not be so capitalized, as well as the cost of maintaining all such movable equipment, and any other costs, charges and expenses which, under generally accepted accounting principles and practices, would be regarded as maintenance and operating expenses, and (2) the cost of any capital improvements made to the Development after the Commencement Date that are intended to reduce other Expenses, or made to the Development by Landlord after the date of this Lease that are required under any governmental law or regulation that was not applicable to the Development at the time it was constructed, such cost or allocable portion thereof to be amortized over the useful life thereof as determined by GAAP, together with interest on the unamortized balance at the Interest Rate or such actual rate as may have been paid by Landlord on funds borrowed for the purpose of constructing such capital improvements, if Landlord bo...
Rental Adjustment. Base Rent shall be increased as of the third (3rd) anniversary of the commencement of the term of this Lease and every other three (3) years thereafter during the term hereof by the percentage of increase, if any, shown by The "Consumer Price Index for the U.S. and Selected Areas for Urban Wage Earners and Clerical Worker, All items (1967 - 100)," Published by the United States Department of Labor, Bureau of Labor Statistic, for the San Francisco, Oakland area (the "Adjusting Index") as compared with the Consumer Price Index for the calendar month immediately preceding the commencement of the term Hereof: (The monthly rent for the following three years shall be set by multiplying the monthly rent for the calendar month Immediately preceding the effective date of the adjustment by a fraction, the numerator of which is the Extension Index and the Denominator of which is the Beginning Index) provided, however, that in no event shall the then current Base Rent be decreased. If any adjustment date shall occur on other than the first (1st) day of any calendar month, the current Base Rent as the first (1st) day of Such month shall be paid on such a day, and Base Rent due on the first (1st) day of the following calendar month shall be adjusted Accordingly for adjustment applicable to the portion of the prior calendar month commencing on such adjustment date. If the Adjusting Index is unavailable on the date on which the first installment of Base Rent as adjusted shall become due, Tenant shall pay The same Base Rent for such installment as the Base Rent for the preceding month, and any adjustment for the change in such installment shall be paid with Base Rent for the following month. If the Bureau of Labor Statistics ceases to use the 1967 average if 100 as the basis of calculation for the Consumer Price Index, then the Consumer Price Index shall be adjusted in accordance with the conversion formula published by the Bureau of Labor Statistics. If at the time required for the determination of the amount of any adjustment in Base Rent, the Consumer Price Index is no longer published or issued, a reliable government or other non partisan publication evaluating the information therefore used in determining the Consumer Price Index shall be used.
Rental Adjustment. (a) For the purpose of this Lease, the following terms are defined as follows:
Rental Adjustment. If the Index in an Anniversary Month shall exceed the Base Index, then the Rent payable for the ensuing calendar year, and thereafter until a new index comparative statement is sent to Lessee, shall be increased by an amount equal to the Percentage Increase multiplied by the Annual Rent set forth in the first sentence of Article 4. At any time after January 1st of the said ensuing calendar year, Lessor shall send Lessee an index comparative statement setting forth (a) the Index in the Anniversary Month preceding the date of the statement, (b) the Base Index, (c) the Percentage Increase, and (d) the increase in the Annual Rent. On the first day of the calendar month (“current month”) following the month in which the Index comparative statement was sent (i) Lessee shall pay to Lessor a sum equal to one-twelfth of said Increase in the Annual Rent multiplied by the number of calendar months of the Lease term then elapsed since said January 1st, and (ii) thereafter, commencing with the current month and continuing monthly thereafter until a different index comparative statement is sent to Lessee, the monthly installments of rent shall be increased by an amount equal to one-twelfth of said increase. In the event the last mentioned increased monthly installments of rent shall continue beyond the end of the calendar year for which such payments were payable, any necessary adjustment will be made when the next succeeding index comparative statement is sent to Lessee. In no event shall the rent computed for any Lease Year be less than the rent for any prior Lease Year.