Rent is automatically increased:

Question

Quizplus · Accepted Answer

An escalation clause in a lease agreement allows for the rent to be automatically increased if certain predetermined conditions are met, such as an increase in property taxes or utilities. The decision to apply the escalation clause should be based on objective facts and circumstances.

A, B, and D are not necessarily accurate. A lessor may make expensive improvements to the property without a corresponding increase in rent, the cost of living may increase without a corresponding increase in rent, and an increase in the lessor's taxes does not automatically trigger an increase in rent.

Rent Is Automatically Increased