A graded lease is one that will often go for more than two years and allows both the landlord and the tenant to know how long the lease is going to last and when the rent can go up at regular intervals as well. If you decide to sign a graded lease, then you need to take a closer look at some of the clauses to help you understand the lease and what you are getting into. Some of the most common clauses that you will find in a graded lease include:
# Participation clause: This is the clause that is going to require the tenant to pay more to the expense that are already folded into the rent. This may include things like utilities, taxes, and maintenance to name a few. Check to see what these fees are ahead of time.
# Escalator clause: This will allow the landlord to increase the rental amount based on the economic index. This indicates whether the prices of real estate will rise or not. If the market in real estate is trending up, then the landlord will want to make more money on the rent as well and the escalator clause will help them to do that.
# Reappraisal clause: Properties are appraised every year for property taxes. A reappraisal clause in this type of lease says that if the property appraises higher than before, which means that the taxes will be going up as well, then the landlord is allowed to increase the rent.
Before you sign a graded lease, you need to take the time to read the fine print. Reading through the details and asking questions of the landlord before you sign and date anything will help you to know exactly what you are getting into with the lease and will help you avoid some of the unwelcome surprises in the lease later on. If you need something changed in the lease before you are locked in. You should also consider whether this is the right type of lease for your needs or if you will be locking yourself into something that does not make sense for you at the time.
One of the things that you may want to look for when choosing a new lease is the locations. Many people want to find an apartment near parks in Sage Valley to ensure that they have a nice community and a place to take their pets and children during the nice weather. We offer some amazing apartments that are near parks in the Sage Valley area, ensuring that you have the perfect place to call home. Come and check out our apartments today!