Guarantor
High RiskA third party who agrees to be legally responsible for a tenant's lease obligations — including rent payments and damages — if the tenant fails to fulfill them.
In Plain English
A guarantor is someone who promises your landlord: 'If this tenant doesn't pay, I will.' It's usually a parent, family member, or employer who signs a separate guarantee agreement alongside your lease. From the landlord's perspective, a guarantor provides additional security when a tenant has limited credit history or income. For the guarantor, it's a serious financial commitment — they could be on the hook for potentially thousands of dollars if you can't pay your rent.
Why It Matters for Tenants
Guarantors face real and significant financial exposure. A guarantor agreement is a legally binding contract, not a formality. If you're being asked to act as a guarantor, you should fully understand the extent of your potential liability before signing. If you're a tenant whose landlord is requesting a guarantor, know what your guarantor is agreeing to.
Risk Level
Guarantor arrangements are high risk because guarantors often don't realize the full scope of what they're signing. Some guarantee agreements cover only rent, while others cover all lease obligations including damages, legal costs, and even lease renewals. The liability can persist for years.
Example Clause
In consideration of the Landlord entering into the Lease with the Tenant, the Guarantor hereby unconditionally and irrevocably guarantees to the Landlord the payment of all rent and the performance of all obligations of the Tenant under the Lease. This guarantee shall remain in full force for the duration of the Lease and any renewals thereof.
This is a representative example for educational purposes. Actual lease language varies.
Common Mistakes Tenants Make
- Signing a guarantee without reading exactly what obligations are covered
- Not understanding that the guarantee may extend to lease renewals automatically
- Failing to get a copy of the lease being guaranteed (guarantors should read it in full)
- Assuming the landlord must pursue the tenant first before coming to the guarantor
Provincial and State Variations
In Ontario, guarantor requirements must be reasonable. Some provinces limit what a guarantor can be required to cover. In Quebec, guarantors (called 'sureties') are common in student housing. In the US, guarantor agreements are common for student rentals and high-cost city apartments; liability scope varies by state.