If future rent is linked to a variable benchmark with no limit, either side may face an unexpectedly large loss. One proposed solution is to place a ceiling and a floor on possible rent adjustments.
The aim is to reduce extreme uncertainty while keeping the adjustment formula objective and agreed in advance.
Opening interactive controls...
Financial Leasing (إجارة): When Does Rent Really Begin?
If future rent is linked to a variable benchmark with no limit, either side may face an unexpectedly large loss. One proposed solution is to place a ceiling and a floor on possible rent adjustments.
The aim is to reduce extreme uncertainty while keeping the adjustment formula objective and agreed in advance.