What is an index rental?

Index leasing combines rental rate for a commonly accepted price index that reflects changes in living costs. This allows landlords to increase rent in conjunction with changes in the economy whenever the lease is re -evaluated, which is usually once a year. On the other hand, the step lease of a mandate of a periodic increase in a specified amount of percentage, regardless of what cost of living can be at this time. The consumer price index (CPI) is a common choice because it reflects what consumers actually pay for goods and services in the economy. V závislosti na tom, zda je nájemní smlouva rezidenční nebo komerční, lze zvážit i jiné indexy. The metrics designed and reported by a third party is preferred to avoid accusations of bias; For example, tenants or landlords cannot accuse each other of an attempt to change CPI. For example, it may express that rent cannot increase by more than 6%, even if the CPI increases by more than a year. This part of the contract can be included in the DODripping laws restricting the increase in rent or in the interest of justice.

For example, a 10% increase in rent would be difficult to bear if it was not expected, while tenants could be able to plan an increase of up to 6%. The rental of the index may also be stated by the lower floor, which orders the rent to increase by at least a specified amount, such as 2%, which for tenants creates tenants that need to be considered in the rental estimates. Someone who knows the rent increases by 2% and 6%, depending on the performance of CPI, they can plan accordingly.

When the CPI is negative, the rental of the index usually does not drop. The contract may specify that it only applies to an increase. Drastic Economic Condice could deserve to negotiate a lease agreement where the lessee asks for an overall reduction. This can be associated with a new rental rental. For example, someone who pays $ 10,000 in the US (USD) might requestAT O NEW RENTAL INDEX for $ 9,000 per month. Introduced tenants with a good record may be in a strong position for negotiations with landlords if they are concerned about the high leases on the soft market.