What is a Lease Guarantor?

What is a Lease Guarantor?

A lease guarantor is a person or entity that agrees to take responsibility for a tenant's obligations under a lease agreement. This typically includes paying rent and covering any damages in case the tenant is unable to fulfill these obligations themselves. Guarantors are often used when a tenant has insufficient credit history, income, or other qualifications needed to satisfy the leasing requirements on their own.

The guarantor acts as a form of insurance for the landlord, providing a level of security that the lease terms will be met. If the tenant defaults on the lease, the landlord can legally require the guarantor to cover the costs and liabilities. Guarantors are common in residential leases, particularly for students or young professionals who may not yet have the financial track record to qualify for a rental property independently. They are also used in commercial leases to secure the agreement when a business is new or has a shaky financial history.