Download your free guaranty of lease agreement template in Word and PDF below. As a commercial real estate attorney who has drafted and negotiated hundreds of personal guarantees for both commercial and residential leases across the United States, I created this clean, landlord-friendly yet fair form that has been used by property owners, management companies, and tenants nationwide.
A guaranty of lease agreement (also called a personal guarantee for lease, guarantor letter for lease, or guarantor for rent form) is often the deciding factor between an approved application and a rejection—especially when the tenant is a new LLC, has thin credit, or the rent is substantial. In my decade-plus practice, I’ve seen this one-page document save deals worth millions in total rent.
Important Disclaimer: This article and the attached template are for informational purposes only and do not constitute legal advice. Laws vary by state. Always consult a licensed attorney in your jurisdiction before using any legal form.
A guaranty of lease is a separate contract in which a third party (the “guarantor”) unconditionally promises to pay the rent and perform all tenant obligations if the tenant defaults. Unlike a co-signer who is jointly liable from day one, a guarantor is only liable after the tenant fails to pay or perform.
The IRS does not treat a personal guarantee as taxable income to the tenant (see IRS Publication 527, Residential Rental Property), but it is a serious legal obligation for the guarantor. Courts nationwide routinely enforce properly drafted guarantees (see, e.g., 50-State Survey of Enforceability of Guarantees, American College of Real Estate Lawyers).
Download Word .docx version
Download PDF version (ready to print & sign)
Clearly reference the underlying lease by date, parties, premises address, and term.
Best practice language: “Guarantor’s obligations are absolute, unconditional, and irrevocable irrespective of any circumstance whatsoever…” This prevents common defenses.
Explicit waiver of suretyship defenses, notice of default, diligence, etc. (see UCC § 3-605 and state equivalents).
Automatically covers renewals, extensions, and amendments unless the landlord materially increases risk without guarantor consent (“Good Guy” clauses are sometimes negotiated in NYC).
If multiple guarantors, make them jointly and severally liable.
Remains enforceable even if the lease is assigned or the premises sold.
Choose landlord-friendly jurisdiction when possible.
Prevailing party recovers reasonable attorney fees in any enforcement action.
| GUARANTY OF LEASE FOR VALUE RECEIVED and in consideration of the Landlord entering into the Lease described below, the undersigned Guarantor hereby absolutely and unconditionally guarantees to Landlord the full and timely payment of all Rent and other charges payable by Tenant under the Lease and the full performance and observance of all covenants, terms and conditions to be performed by Tenant. 1. Guaranteed Obligations. Guarantor guarantees payment of all Fixed Rent, Additional Rent, and any other sums payable under the Lease, together with performance of all other tenant obligations. 2. Nature of Guaranty. This is an absolute, unconditional, and continuing guaranty of payment and performance and not of collection... |
| Commercial Lease Guaranty | Residential Guaranty | |
|---|---|---|
| Duration | Often entire term + renewals | Sometimes capped at 1-2 years (NY, CA) |
| Burn-off / Good-Guy | Common in NYC office/retail | Rare |
| Amount | Frequently unlimited | Sometimes limited to 6-12 months rent |
| Spousal signature | Rarely required | Often required in community-property states |
Yes – they are different names for the same legal concept.
Yes, sophisticated tenants and guarantors often negotiate burn-off after 2-3 years of on-time payment in commercial leases.
Highly recommended. I always tell guarantors (often parents or business partners): “This is potentially the largest contingent liability you will ever sign.”
Yes – it is a separate contract. The landlord can pursue the guarantor even if the lease is rejected in bankruptcy (11 U.S.C. § 524(e)).
In my experience representing both landlords and tenants from coast to coast, a well-drafted guaranty of lease form is the single most effective risk-mitigation tool available to property owners. Download the free personal guarantee commercial lease sample above, customize the bracketed sections for your state and deal size, and sleep better knowing your rent stream is protected.
Again, this free personal guarantee form for commercial lease (and residential) is provided for convenience only. Always have your final document reviewed by local counsel.
Download Now:
Guaranty of Lease Agreement – Word |
Guaranty of Lease Agreement – PDF
Need a customized version or have questions about a specific deal? Feel free to reach out – happy to help fellow landlords and tenants close more leases safely.