What is a good guy clause?
Posted on May 5 2012 at 12:20:09 AM in Real Estate
“As long as I pay the rent, I can leave whenever I want, that’s a Good Guy Clause, right?” That statement is wrong, and it’s a common misperception.
A Good Guy Clause is a personal guarantee that protects you when you break the lease. However, typically there are certain conditions that a landlord will want you abide to.
Firstly the landlord will probably make you guarantee that you’ll stay in the space for a set amount of time, for example he’ll want you to guarantee at least two years of a five year lease.
The landlord will request that you also give him a notice that you’ll be leaving the space, so for example he might require that you give him a 3 month notice so it gives him time to market the space.
The landlord will want you to restore the space back to the original condition.
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