Which clause gives a tenant the ability to increase rent based on rising operating costs?

The clause that allows a tenant to adjust rent in accordance with rising operating costs is known as an escalation clause. This provision is designed to address changes in expenses that can affect the overall cost of operating the property, such as increases in property taxes, maintenance costs, and utility expenses. The escalation clause ensures that the landlord can pass some of these increased operating costs onto the tenant, usually through a defined formula or based on actual increases.

Unlike fixed clauses, which stipulate a set rent amount for the duration of a lease, the escalation clause introduces variability in the rent based on external factors. Termination clauses, on the other hand, relate to the conditions under which either party can end the lease, while sublet clauses allow tenants to rent out their space to others. None of these options address the issue of increasing costs in relation to rent adjustments, which is the primary function of the escalation clause.