A personal guarantee can put your personal assets on the line. Here is how to limit it.
Tenant Representation · August 2026
What Are You Really Signing?
The personal guarantee in your commercial lease can put far more than your business on the line.
The clause that changes everything
A personal guarantee can let a landlord pursue your personal savings, investments, and non-homestead assets if your business defaults.
Know the exposure
Your LLC shield may not protect you
The guarantee reaches through the business entity and makes you personally responsible. On a multi-year Miami lease, that exposure can reach hundreds of thousands of dollars.
Negotiate the terms
Four ways to limit personal risk
Ask for a “good guy” guarantee (your liability ends when you properly vacate and return the space), a fixed cap, a burn-down or sunset provision, or narrower default triggers. The real negotiation is how much, for how long, and under what conditions.
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