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If you’re unsure that a prospective tenant will be able to pay its rent, getting a guaranty can assuage your fears and protect you from not being able to collect what the tenant owes. While a tenant might be able to produce a third party who’s willing to act as a guarantor on the tenant’s promise to pay—that is, the guarantor will step in and perform the lease obligations of the tenant if the tenant fails to do so—that strategy works only if you can actually hold the guarantor to its promise.
