Which lease type features rent that increases at set future dates (step-up)?

• A. Gross Lease
• B. Net Lease
• C. Graduated Stepped Lease
• D. Periodic Tenancy

Answer: (C)

Rent that rises at fixed future dates is a step-up arrangement. This pattern is captured by a graduated stepped lease, where the rent schedule is built into the contract with specific increases at predetermined times. For example, the rent might be set at a certain amount for the first year, then increase to higher amounts at set points later in the term. This clearly differentiates it from other common lease types: a gross lease keeps the rent level while the landlord covers most expenses, a net lease bases rent plus some or all operating costs and may include escalations but not a fixed step-up schedule, and a periodic tenancy revolves around a rolling term (often month-to-month) with potential rent adjustments tied to renewal rather than a prearranged step-by-step increase.