Lease Guaranty vs. Suretyship: What's the Difference & Why It Matters

There are some tenants that you know will have the assets necessary to pay their rent every month. And then there are the more financially risky ones. When leasing to these businesses, it’s advisable to get a more financially stable third party to sign an agreement backing the tenant’s lease obligations and allowing you to hold it liable in case the tenant defaults. In the business vernacular, such agreements are generally lumped together under the term “guaranty.”