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Why do we need a guarantor?

You might need a guarantor so you can rent a place to live. A guarantor is someone who agrees to pay your rent if you dont pay it, for example a parent or close relative. If you dont pay your landlord what you owe them, they can ask your guarantor to pay instead.

What does it mean to personally guarantee a commercial lease?

In a personal guarantee, the guarantor (usually the business owner) agrees to be responsible for the lease payments owed by the business under the terms of a commercial lease if the business fails to pay rent or fails to pay rent after vacating the leased space before the end of the lease term.

Whats the purpose of a guarantor?

A guarantor is someone who agrees to pay your rent if you dont pay it, for example a parent or close relative. If you dont pay your landlord what you owe them, they can ask your guarantor to pay instead. If your guarantor doesnt pay, your landlord can take them to court.

Do you always need a guarantor?

You may not need a guarantor if you can pass a credit check or show proof of income. If you have a poor credit history or low income, a landlord may still rent to you if you can pay some rent in advance.

Whats the difference between cosigner and guarantor?

In this article: A cosigner on a rental property is someone who signs a lease with you and assumes equal liability for paying the rent, while a guarantor is only liable to make payments when the primary borrower cant or wont pay.

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