Document background
The Rent Guarantee Agreement is a crucial document in the U.S. real estate market, used when a landlord requires additional security beyond a tenant's own financial credentials. This agreement becomes particularly relevant in situations involving first-time renters, students, small businesses, or tenants with limited credit history. The document, governed by both federal and state laws, establishes a legally binding commitment from a guarantor (often a parent, relative, or corporate entity) to assume responsibility for rent payments and other lease obligations if the primary tenant defaults. The agreement must comply with state-specific requirements regarding guarantees and real estate transactions, including statute of frauds provisions requiring written documentation. It typically includes detailed terms about the scope of the guarantee, enforcement mechanisms, and the duration of the guarantor's obligations.
