The “Good Guy” guarantee is something that most landlords insist on for most small and medium size commercial tenancies. It is an agreement signed by one or more principals of a corporation personally guaranteeing payment of the rent, and potentially other terms of the lease.
If worded properly, this “guaranty” does provide certain protection to the tenant. However, terms of this document are not always straightforward. Sometimes, landlords add on extensive notice periods, and often they will add language creating additional liability for the tenant.
The “Good Guy” guarantee requires review, negotiation and a clear understanding.
We believe that it is best to discuss and define what should be contained in a “Good Guy” guarantee at the earliest stages of negotiation of a commercial lease.
If you are considering leasing new commercial space, give us a call today.