Contract Glossary
Guarantor
Definition
A guarantor is someone who promises to pay if the other person doesn't. You're the backup plan. If your friend defaults on their lease, the landlord comes to you for the money.
In Practice
Your 22-year-old with their first job wants to rent a $1,800/month apartment in Brooklyn. The landlord requires a guarantor because their income doesn't meet the 40x rent rule ($72,000/year). You sign as guarantor. If your kid stops paying rent, you owe every penny — not just one month, but potentially the full remaining lease (up to $21,600 for a year) plus late fees and legal costs. That's the real risk of guaranteeing someone else's obligations.
Common in these contract types
Frequently asked questions about guarantor
A co-signer is jointly responsible from day one — they're on the hook whether or not the primary party pays. A guarantor is a backup: the creditor must typically try to collect from the primary party first before coming to the guarantor. In practice, many landlords and lenders treat them the same, so read the fine print.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.