Looking for a Rent Adjustments Claws to included in my rental contract
Hello Fellow Landlords,
I am in the middle of renting my first house in the US and am in a rush to put my contract together for a prospective tenant.
Currently I am working with the "Strict Rental Agreement" template downloaded from BP (thanks BP) but I want to add a claws that talks about automatic 2% upward Rental Adjustments every year.
I found the following claws but I think it is too complex, I am hopeing to get a plain language example that is currently being used by one of the landlords of this great community.
My Complex claws example:
Rent Adjustments. Commencing on the 1st day of January next following the Rent Commencement Date and on each January 1 thereafter (each such date a Rent Adjustment Date) the Minimum Monthly Rent then in effect shall be increased [or decreased] by a percentage equal to the percentage increase in the CPI Index.
CPI Index shall mean the Consumer Price Index presently designated as the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers, U.S. City Average [or for the local region], (Base 1982-1984 equals 100), for the month which is four (4) months prior to the Rent Adjustment Date compared to the Index published for the month which is sixteen (16) months prior to such Rent Adjustment Date. In the event that the statistics are not available or in the event that publication of the Consumer Price Index is modified or discontinued in its entirety, the adjustment provided for herein shall be made on the basis of an index chosen by Landlord as a comparable and recognized index of purchasing power of the United States consumer dollar published by the U.S. Department of Labor or other governmental agency. [Additional clause specifying precisely how the increase is calculated.]
source: http://www.contractstandards.com/document-checklists/lease-agreement-analysis/rent
Thanks for all the help
Luis A. Montanez, MAFM
“Goals in writing are dreams with deadlines.” –Napoleon Hill,
“Dreams can inspire you, but goals can change your life.”