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The Step Lease

The second of five leases defined this week

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The step lease attempts to cover the landlord's expectedincreases in expenses by increasing the rent on an annual basisover the life of the agreement. The problem with step leases isthat they are based on estimates rather than actual costs, andthere's no way for either party to be sure in advance that theproposed increases are fair and equitable.

Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need

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