A CPI rent escalator in a lease protects the landlord against inflation.

Question

Quizplus · Accepted Answer

A CPI rent escalator in a lease is a clause that allows for the rent to increase based on the Consumer Price Index (CPI), which measures the average change over time in the prices of goods and services. As inflation leads to higher prices, the CPI rent escalator protects the landlord by ensuring that the rent keeps up with the increasing cost of living.

A CPI Rent Escalator in a Lease Protects the Landlord