What is a lease guarantor?

A lease guarantor is someone who signs as to promise that the lease will be abided by, and if it's not abided by by the lessee, the guarantor will be financially liable. For example, many times businesses that'll lease space in shopping centers will be small businesses, and the business, through its president of the company or an officer of the company, will sign a lease with the shopping center. The shopping center, then, will also require that the tenant have a guarantor, typically the owner of the business, who will sign in an individual capacity so that if the corporation, that's the lessee, is not successful or goes bankrupt or goes out of business, the landlord still gets the rent by means of the promise of the owner of the business in the individual capacity.