A Good Guy Guarantee is a modified personal guarantee that limits the guarantor's liability to the period during which the tenant is actually in possession of the premises. If the tenant provides proper advance notice (typically 3–6 months), vacates the space, and leaves it in good condition, the guarantor's liability terminates on the date of vacation — even if the full lease term has not expired. The "good guy" concept rewards tenants who act responsibly upon exit.
By Angel Campa, Founder · Updated March 2026
Good Guy Guarantees are far less onerous than unconditional personal guarantees because they give the guarantor a defined exit from personal liability. Rather than facing unlimited exposure for the remaining lease term upon business failure, a guarantor under a Good Guy structure faces liability only for the notice period after the business decision to exit is made. This structure is standard in New York City commercial real estate and is increasingly common nationally for small and mid-size retail and restaurant leases.
Negotiate the shortest possible notice period — 2–3 months is achievable in most markets, rather than the 6 months landlords initially seek. Ensure the vacation condition requires only broom-clean condition and surrender of keys, not costly restoration obligations that could delay vacation and extend guarantor liability. Include a carve-out confirming that any rent accrued through the vacation date (but not beyond) is the only surviving obligation. Negotiate automatic release of the guarantee upon assignment to a creditworthy successor, eliminating the need for a formal guarantee release.
Standard Good Guy with 3-month notice, extended Good Guy with 6-month notice period, Good Guy limited to base rent only (excluding CAM and other charges), and Good Guy with automatic termination after a defined operating period.
Lextract extracts these fields directly from your lease PDF when this clause is present:
Personal Guarantee Clause
A personal guarantee clause is a provision by which an individual — typically the principal owner or officers of the tenant entity — unconditionally guarantees all obligations of the tenant under the lease.
Assignment and Consent Clause
An assignment and consent clause governs the tenant's ability to transfer its entire leasehold interest to a third party (assignee) who then becomes the new tenant under the lease.
Holdover Clause
A holdover clause defines the legal consequences for a tenant who remains in possession of the leased premises after the lease expiration date without executing a new lease or renewal.
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