Lease Guaranty (IA)

Landlords want to ensure that their tenants have the financial ability to meet the obligations set forth in the lease. If a tenant without sufficient means cannot satisfy their obligations under a lease, you may not be able to recover your damages. For this reason, if you are unsure about the credit worthiness of a potential tenant, you may wish to require a guaranty from an individual or entity who has sufficient assets to secure that tenant's obligations.

By signing the guaranty, the "guarantor" agrees to meet the obligations of the tenant, for example, paying outstanding rent owed by the tenant.

If there is more than one guarantor (as may be the case if there are multiple tenants), a separate guaranty of lease agreement should be used for each guarantor.

In most cases, this lease guaranty should be signed before signing the lease, or other rental agreement. However, this lease guaranty can also be used after the lease is signed, such as in the case where the tenant defaults in the payment of rent during the term of the lease and the parties wish to avoid eviction proceedings.