Property Management

In New Mexico, an 'index lease' (also called an indexed or escalation lease) adjusts rent based on:

AThe landlord's operating expenses only
BA specified economic index such as the Consumer Price Index (CPI)✓ Correct
CThe tenant's gross sales
DThe local property tax rate

Explanation

An indexed lease ties rent adjustments to an economic index (usually CPI) to protect the landlord from inflation. As the CPI increases, rent increases proportionally per the lease formula.

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