What’s the “Good Guy Guarantee” in Miami, FL?
Have you ever heard of something called the “good guy guarantee” in the world of landlord/tenant law? This isn’t necessarily a service or benefit you’ll find advertised by landlords in Miami, FL, but it’s an issue you should be aware of if you are to be leasing any space for a business.
Here’s an overview of what you should know.
What is it?
The basic concept of the good guy guarantee is that it’s a pre-negotiated kick-out that has the financial backing of a guarantor who has good credit. This guarantee is established while the tenant is in possession of the property. If the tenant provides the landlord with sufficient notice that it will vacate the premises and then leaves the premises in good condition in accordance with all lease requirements, both the tenant and guarantor are then released from the contract.
This is a beneficial arrangement for the landlord, because the guarantor personally backs the tenant, and the tenant gives up the space in a way that prevents any sort of need for eviction or abandonment litigation. It’s beneficial for the tenant in that if they provide the landlord with sufficient notice of intent to vacate (usually six to nine months for commercial leases) and then remain compliant with the lease until that point, they will not have to deal with any future liability or potential lawsuits. Finally, the guarantor benefits in that they will not have to be called on to pay up for the lease so long as the tenant fulfills their end of the bargain.
Simply put, the pre-negotiated kick-out clause established in the contract helps to avoid an issue in which the tenant just bails on the lease, and also prevents the landlord from having to go after guarantors who may or may not be trustworthy.
In some cases in Miami, FL, this good guy guarantee will complement an extra deposit for which the tenant is responsible. This deposit money gets returned when the tenant complies with the terms of the contract and provides the necessary lead time to give the notice to vacate. However, that deposit could be forfeited if the tenant does not provide the lead time and the landlord has to make a claim under the guarantee’s terms. It should be noted that this complimentary deposit is not a part of the security deposit.
This sort of arrangement has been popular in New York landlord/tenant dealings for quite some time, and is starting to become more prevalent in commercial real estate leases in other parts of the country as well. It’s easy to see why—it’s beneficial to all three parties involved and makes for a much less stressful arrangement when an end to the lease is inevitable.
To learn more about real estate disputes, landlord-tenant disputes and how to resolve the issues associated with your case in Miami, FL, contact an experienced estate planning attorney at Rubén J. Padron, PA with any questions you have. We look forward to learning more about the particulars of your case.
Categorised in: Real Estate Attorney