Personal Guarantees during Commercial Leasing

Question

My partner and I are starting a small business and when looking at leasing our space, we have been informed that due to being a new business they are requiring a Personal Guarantee. Can we get around this? Every leasing company has stated the same thing. We have also been told the only way to get around that is to lease from an Individual which nothing is out there at this time. Will an attorney be able to get us around the personal guarantee. State of Missouri

Answer 1

I do not care what state you are in. I seriously doubt use of an attorney will cause a landlord to

lease you property without a personal guarantee.

There may be landlords who will negotiate this. No you do not need a lawyer. If you can keep looking and do not be afraid to make a lease offer without any personal guarantees or provide a personal guarantee for a limited period of the lease (six months?) or for a limited amount of the lease (six thousand dollars?) or both. Worse  case they say NO. Someone will be hungry and accept a compromise. Keep looking.