Property Management

A Maine commercial lease that has an annual CPI (Consumer Price Index) rent escalation clause adjusts rent based on:

AThe local property tax rate changes
BChanges in the Consumer Price Index to account for inflation✓ Correct
CThe landlord's operating cost increases only
DThe tenant's gross sales performance

Explanation

A CPI escalation clause adjusts rent annually based on changes in the Consumer Price Index, protecting the landlord against inflation by ensuring rent keeps pace with the cost of living.

Related Maine Property Management Questions

Practice More Maine Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Maine Quiz →