What type of lease allows rental rates to increase at predetermined intervals?

A step-up lease is a specific type of lease agreement that includes provisions for rental rates to increase at predetermined intervals. This kind of lease is beneficial for both landlords and tenants as it allows for manageable adjustments in rent over time, often tied to inflation or market conditions. This prearranged schedule of rent increases makes it easy for tenants to budget their expenses while allowing landlords to ensure their rental income keeps pace with rising costs or market conditions.

In contrast, a fixed lease typically maintains the same rental rate for the entire term of the lease agreement, offering no incremental increases. A month-to-month lease provides flexibility for tenants and landlords but does not guarantee fixed or increasing rates over time. On the other hand, a net lease primarily refers to the type of expenses paid by the tenant in addition to the base rent, rather than how the rental rates increase. Thus, the step-up lease specifically addresses the structured increase in rental rates, making it the correct choice for this question.