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A lease guarantor is an individual who commits to ensuring the terms of a lease are fulfilled. If the tenant (lessee) fails to comply, the guarantor becomes financially responsible. In many cases, small businesses leasing space in shopping centers often have their corporate president or an officer sign the lease, while the landlord requires an additional guarantor, typically the business owner, to sign in their personal capacity. This arrangement safeguards the landlord's interests, as they can collect rent from the owner's personal promise if the corporation becomes unsuccessful, bankrupt, or ceases operations.
