Can a landlord cancel the yearly rate of escalation in rentals for a tenant who pays his rent on time? 

Answered according to Hanafi Fiqh by TheMufti.com
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Q. As a landlord, can I cancel the rate of escalation (8%) of rentals to my tenant for the following year if my tenant pays me rental on time so he pays in future on time too?

A. In the enquired, it would be permissible for the landlord to undertake to forfeit the fixed rate of escalation of rentals for the following year if the tenant pays his rentals on time. This will serve as an incentive for the tenant to pay his rentals on time.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

This answer was collected from TheMufti.com, which is a fatwa portal managed by Mufti Ismaeel Bassa from South Africa.