By Matthew A. Quick All too often Landlords are failing to collect rent that is rightfully owed. Tenants that fall behind on rent are most often uncollectable and the Landlord is limited in the amount of security that can be received (in both practical and legal terms). A simple alternative to losing out on back rent, and other obligations, is to have the lease agreement guaranteed by a Guarantor of the Tenant. With the proper Guaranty, the Guarantor not only guarantees that rent is paid, but also that the provisions of the lease are fulfilled. The Guaranty may be incorporated into the lease agreement--the Guaranty does not have to be a separate document. In most instances, though, the Guaranty needs to be executed at the same time the lease agreement is executed.
The Landlord may require the Guarantor to submit to the same application process as the Tenant to ensure the Guarantor's financial security. As a practical note, if the Landlord requires a Tenant or Guarantor to submit to an application process, it is strongly recommended that the same application process is used with each subsequent Tenant or Guarantor applicant to avoid any accusations of bias or discrimination.