What characterizes a graduated lease?

A graduated lease is characterized by rental increases occurring at predetermined intervals for specific amounts. This type of lease structure allows landlords to plan for future rental income while providing tenants with a clear understanding of their future financial obligations. Typically, the lease will outline specific dates at which the rent will increase and the amount by which it will increase, making budgeting easier for tenants.

The other lease types mentioned do not fit the graduated lease definition. A flat rent with no changes remains constant throughout the lease term and does not involve scheduled increases. Variable rent based on market conditions fluctuates according to the real estate market's performance, and is not predetermined, whereas a graduated lease relies on agreed-upon increases. Lastly, short-term leases can vary in structure and do not necessarily imply any specific type of rent adjustments. The graduated lease is unique in its predictable incrementally rising rent, allowing both tenants and landlords to plan accordingly.