Chapter 22 - § 22.9 • TENANT'S CHECKLIST

• Jurisdiction: Colorado

§ 22.9 • TENANT'S CHECKLIST

[ ] Object to an acceleration clause if it gives the landlord possession of the premises and the right to all of the rent for the term.

[ ] Negotiate the discount rate for the accelerated amount to the highest rate possible. Propose a discount rate equal to the "cap rate" or another rate that approximates the landlord's investment yield or higher.

[ ] Make sure that allowances and inducements are not affected if the tenant cures the default within any applicable grace period.

[ ] If the landlord has the right to collect future rent from the tenant on a default, consider eliminating the right to reclaim inducements and allowances.

[ ] Prior to the landlord performing the tenant's obligations, request that the tenant be given notice and the right to cure.

[ ] Specify repayment time.

[ ] State that the tenant must only pay the landlord's "reasonable costs" or "actual out-of-pocket costs" for performing any of the tenant's defaulted obligations.

[ ] If the landlord charges interest on money expended by the landlord for performing the tenant's obligations, specify an interest rate that approximates the landlord's cost of funds. Ask for a longer slack period before interest accrues, either by asking for a larger number of days or by using business days. Negotiate the default interest rate down. If a floating rate is used, carefully define it. If the floating rate references a specific bank, also reference successors to the bank and how an alternative bank may be selected. If the lease provides for a late charge and interest, specify that the late charge applies to the first month, and interest does not accrue until the payment is 30 days past due.

[ ] Provide that reletting be on market or commercially reasonable terms. Ask that the landlord use commercially reasonable efforts to relet the premises and collect rent from the new tenant. If a strong tenant, require the landlord to mitigate its damages and state in the lease that the tenant is relieved of the obligation to pay rent to the extent that the landlord's efforts are not commercially reasonable.

[ ] Resist indemnifying the landlord for a breach of lease.

[ ] Resist allowing the landlord the right to appoint a receiver.

[ ] Limit or eliminate any limitation on counterclaims. At least allow for mandatory counterclaims. Consider limiting counterclaims only in an action by the landlord to recover possession of the premises.

[ ] Seek a right to terminate the lease if the landlord...