Lease dictionary
Escalation clause
A clause that raises your rent automatically during the lease - by a set % or an index like CPI.
An escalation clause bakes future rent increases into the lease itself: a fixed bump each year, or one tied to an index like the Consumer Price Index (CPI). You agree to the increase the day you sign.
In rent-controlled cities the clause still can't exceed the legal cap. Elsewhere it's generally enforceable - which makes reading it before signing essential.
Watch out
Index-tied escalations have no ceiling unless the clause sets one. Ask for a cap ('CPI, max 4%') before signing.
See it in action
The Rent increase checker puts this term to work for you.