A lease guarantee is part of a lease agreement where a person or a company called the lease guarantor takes responsibility to pay the rent or any liabilities on behalf of the lessee in case there is any problem in the future. A lease guarantee is usually incorporated in lease agreements which involve a big amount of rent so that if due to certain circumstances the lessee is not able to pay the rent or pay for any damage to the property, the lease guarantor can pay the amount on his behalf.
A lease guarantee can extend all throughout the lease term between the lessee and the lessor, but in some cases if the lessor is happy with the lessee and sees that the latter is paying rent on time and there are no defaults, then the guarantor may be free of any liability. The lease guarantee must include the roles, responsibilities and extent of liabilities of the guarantor.
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Sample Lease Guarantee Agreement
Lease Guarantee Agreement
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