What is the role of a guarantor in lease agreements?

The correct role of a guarantor in lease agreements is to ensure that the obligations of the lease are met if the primary lessee defaults. A guarantor acts as a secondary source of assurance for the lessor, providing financial security and peace of mind. This means that if the primary lessee fails to fulfill their payment obligations or breaches the lease in other ways, the guarantor is legally bound to cover those obligations. This arrangement can make it easier for the primary lessee to secure the lease, especially if they have a less established credit history or financial standing.

In contrast, providing maintenance services for the leased asset, negotiating better lease terms, or overseeing repairs and service agreements do not accurately describe the role of a guarantor. These activities involve the management and operational aspects of the lease, which fall under the responsibilities of the lessee or property manager rather than the guarantor. The guarantor’s primary function focuses solely on the financial responsibility associated with the lease agreement.