Responsibilities As A Guarantor

[Tzefanyah]

In March 2009, my sister signed a one year lease and I signed a guarantor agreement.  The guarantor agreement stipulates..

"Guarantor agrees that his/her guarantee shall continue to any renewal, modification or extension of this lease and during any period when the tenant occupies the premises after the expiration of any lease or renewal".

After the one year lease expired, my sister signed another one year lease with a rent increase.  I did not sign anything on this lease.  

After the second one year lease expires, she now has no lease and is paying as a month to month renter.

My questions are:

1) Do I continue to be legally obliged as a guarantor?  Even though I signed this paper, is it legal for me to be a guarantor indefinitely?

2) Since it is a month to month lease, if my sister has anyone stay with her, and then my sister leaves the apartment, am I in any way responsible for the guarantee of rent payment if another person occupies the apartment after my sister leaves?  Do I have to just give 30 days notice to the landlord that my sister has vacated?

ANSWER: Michael,

Your responsibility continues as long as your sister occupies the unit.  When her lease converted from a one-year lease to a month-to-month, all other aspects of the original agreement apply, to include your responsibility as the guarantor.  In other words, you will remain the guarantor until your sister leaves or a new contract is signed.

If your sister has a friend move in and then your sister leaves, you would not be responsible for the friend.  You are a guarantor for your sister and your responsibility ends when she leaves.

If you are concerned about remaining the guarantor, I recommend you both go visit the Landlord and ask him to remove you from the lease.  She's on a month-to-month contract, so it would be easy to change the terms and the Landlord shouldn't have a problem with it since your sister has a two-year history as a tenant.

Thanks for the question!

Nathan

---------- FOLLOW-UP ----------

When you say, "In other words, you will remain the guarantor until your sister leaves or a new contract is signed."...I haven't signed anything since 2009 at the beginning of the 1st lease.  My sister signed a new lease in 2010 with a rent increase.  Isn't that a new contract?

The only place where my name appears is on a separate lease guarantor form.  It does not appear on the 2nd lease, and she has no lease currently.  So, there are no current "terms". Does that make any difference in reference to your original response?

ANSWER: Michael,

Your original post said that your guarantee "shall continue to any renewal, modification or extension."  I would assume your guarantee is still on file and they can still legally consider you the guarantor of the rental unit.  It can depend on the Landlord's interpretation of the document.  My recommendation is that you not leave it to chance.  Go to the Landlord and have them state IN WRITING that you are no longer liable for the unit.

Thanks for the question!

Nathan

---------- FOLLOW-UP ----------

Last question:  What possible reason would the landlord put in writing that I am no longer liable for the unit?  It seems that he would have nothing to gain and everything to lose if he no longer has a guarantor...even if the rent has been paid on time for 30 months straight.  Would you as a landlord?

[Nathan]

Your sister is on a month-to-month lease.  Go with her and explain that she has a good rental history and you see no reason to be on tap as a Guarantor any more.  It's always, always, always easier to keep a decent tenant than to go through the time/expense/trouble of finding a replacement.  So if she's been a good tenant for 2+ years, he should have no problem letting you off the hook to keep her happy.  If he refuses, have her submit her 30-day notice of intent to vacate and go find a better Landlord.

As a Landlord, I would do the right thing and release you from any responsibility, in writing.  His incentive for doing this is keeping a decent, paying tenant.

Nathan