Property Management

A commercial tenant in Santa Fe signs a 10-year gross lease. After 5 years, the landlord can only increase rent if:

AThe market rent has increased
BThe lease contains an escalation clause allowing for rent increases✓ Correct
CThe landlord gives 60 days' notice
DThe city council approves the increase

Explanation

In a gross lease, rent is fixed at the negotiated amount unless the lease contains an escalation clause (rent step-ups, CPI adjustments, etc.) that allows for increases during the lease term.

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