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Sat in on a lease signing in Columbus and the landlord's lawyer said one line about personal guaranties that saved me $40k
I was just there to watch my buddy sign for his bar on High Street, but when his lawyer made the landlord add a clause capping his personal guaranty at 6 months of rent instead of the full 5 year term, I went home and rewrote every contract I use, so has anyone else picked up a clause like that just from being in the room?
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the_emma1mo ago
I used to roll my eyes at stuff like this because I always figured a personal guaranty was just the cost of doing business and you either sign it or you don't. Reading this made me realize how dumb that was, because the terms are clearly negotiable if you have someone in the room who knows what to push for. My old mindset was basically "the landlord holds all the cards," but a cap at 6 months vs the full 5 year term is a massive difference and it costs the tenant nothing to ask. That one clause could be the difference between losing your house and walking away with a bruise if the bar goes under. Next time I'm at any signing I'm paying way more attention to the guaranty language instead of just flipping to the signature line.
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