Recently, we bought a house and asked the landlords if we could break our lease, while offering them a selection of 2 qualified tenants ready to sign a new lease, but instead of considering a new renter, they requested payment of the rent in full for the term of the lease. We let them know about the Colorado law to "mitigate" damages and they said, okay we will try to rent it, after not contacting the first qualified applicants. They have had a least 2 qualified tenants, the market has very limited rental inventory here in Colorado, so there are renters available. They have not rented it yet, and just told the last applicants that they will not be renting it, but will put it back on the market next month. We have not defaulted on the payment and we pay the utilities, but are wondering if we are still liable for the rent?

Other similar properties on the market have rented, they have changed the rental to no pets, but all previous tenants including ourselves have had pets, so do we just keep paying rent? Where do we stand legally?

You are liable. They can change the terms to no pets. They only mitigation is to refund you any paid rents if they do rent.
You might have offered some extra amount to be let go. After all, it's their time, their checking of prospective tenants, and time is money.

What does the lease contract you signed say about breaking the lease? If they followed that then they are within the law. If you have broken the lease why would they take a recommendation from you? I don't think they are obligated to follow your recommendations for a tenant.

You can always stop paying and go to court and hope a judge sees it your way, using the fact you did have tenants, or they had applicants.

I'd take it to small claims and fight it. If you found other renters, and the landords themselves had other renters apply, then a judge may well see it your way.

You may end up having to pay the remaining rent, but it's worth a try, and you may very well win.

Good luck.

The landlords are required to make a "good faith" effort to find new tenants. If you can prove that they have not done so, then you have a case for a lawsuit. Based on what you have said, you stand a good chance of winning.

This leaves you with two choices. A) file suit against the landlord to recover the rents you have paid or B) stop paying and let the landlord sue you for unpaid rent. Personally, I would do the latter. I would sent the landlord a letter (preferably have you attorney send it) stating that you have presented the landlord with viable tenants and that you are aware they have refused other viable tenants. Therefore, you feel they have not acted in good faith to relet the property. Under those circumstances, you will cease paying rental on the property.

My suspicion is they won't sue since they will know they will lose in court. But if they do sue, get affidavits from the tenants they turned down. And countersue for rental you paid on a vacant home.