• Accelerated Rent Provisions: When are they enforceable?
  • December 1, 2005 | Authors: Evan S. Cohn; James A. Gober; David B. McAlister
  • Law Firm: Arnall Golden Gregory LLP - Atlanta Office
  • A landlord entering into a lease expects to be able to enforce the lease terms against the tenant, especially critical terms involving defaults and remedies. The remedies for a tenant default often include the right to accelerate the rent payments due during the balance of the lease term and recover such future rents as damages for the default. From the landlord's perspective, this is an important remedy to give the landlord the full amount of rent for the lease term. Otherwise, the landlord cannot claim unpaid rent from the defaulting tenant until each payment is due. However, the acceleration clauses in many leases may not be enforceable under Georgia law. A recent Georgia case showed that a rent acceleration clause must be carefully drafted to pass Georgia's strict test of enforceability.