What is the term used to describe a change that allows for an increase in rent?

The term "escalator" refers to a specific provision often included in leases that allows for increases in rent over time, typically based on predetermined criteria such as inflation or changes in market conditions. This provision can be a crucial aspect of property management, as it provides a structured way for landlords to adjust rents in line with rising costs or economic factors, ensuring that the rental income keeps pace with the market. It is commonly found in commercial leases and can be tied to an index, such as the Consumer Price Index (CPI), which reflects changes in consumer prices.

This term is distinct from the other options, which may describe related concepts but do not convey the same contractual mechanism. For example, "rent hike" is a more informal term that can describe any increase in rent without implying the structured method involved in an escalator provision. Similarly, "raise" and "cost adjustment" lack the specific legal and financial context that "escalator" provides, making it the most accurate term for the mechanism of systematically increasing rent.