Property Management
A lease with a CPI escalation clause means rent increases are tied to:
AThe landlord's mortgage rate changes
BThe Consumer Price Index, a measure of inflation✓ Correct
CThe local market rent increases only
DThe property's appraised value
Explanation
A CPI escalation clause adjusts rent annually (or at set intervals) based on changes in the Consumer Price Index, providing the landlord with protection against inflation.
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