{"id":18547,"date":"2018-10-10T16:04:52","date_gmt":"2018-10-10T13:04:52","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=18547"},"modified":"2026-04-07T14:48:49","modified_gmt":"2026-04-07T11:48:49","slug":"good-guy-guarantee-nyc-real-estate","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/good-guy-guarantee-nyc-real-estate\/","title":{"rendered":"What Is A Good Guy Guarantee In NYC Real Estate?"},"content":{"rendered":"

A Good Guy Guarantee is a clause typically found in commercial lease agreements in New York City.<\/p>\n

Also known simply as a GGC, the Good Guy Clause helps tenants by limiting the amount of a security deposit and helps landlords to avoid a costly eviction process if the tenants stops paying their rent before the end of the lease.<\/p>\n

What Are the Parts of a Good Guy Guarantee?<\/h4>\n

All commercial real estate leases<\/a> are different, and the specific language of a lease and the Good Guy Clause will vary from one landlord to another. But all GGCs normally include three common elements:<\/p>\n

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  1. Tenants<\/a> must notify the landlord<\/a> if they will be vacating before the lease ends.<\/li>\n
  2. Tenants must give the space back to the landlord clean, and free of any liens or obligations<\/a>, such as a sublease.<\/li>\n
  3. Tenant must be current on the rents due up to the time the tenant vacates the space.<\/li>\n<\/ol>\n

    How Does A Good Guy Clause Help A Tenant?<\/h4>\n

    A Good Guy Clause is signed by a principal<\/a> of the business leasing the space. A GGC is a type of personal guarantee.<\/p>\n

    But \u2013 and this is a big \u2018but\u2019 \u2013 the personal liability of the business owner or principal is limited to any rent money due only up to the time that the tenant vacates the suite and leaves the space in good condition. Tenants who sign a GGC as part of their commercial NYC lease agreement usually pay a lower security deposit than those who don\u2019t.<\/p>\n

    Sometimes tenants have no choice but to default on their leases and vacate early. Having a Good Guy Guarantee in the lease agreement is a promise by the landlord not to enforce any additional potential penalties contained in the lease \u2013 provided the tenant acts like a \u2018Good Guy\u2019. Once the tenant vacates the personal liability also ends.<\/p>\n

    How Does A Good Guy Clause Help A Landlord?<\/h4>\n

    Why would a landlord<\/a> willingly agree to let a tenant terminate the lease early?<\/p>\n

    The main reason is that commercial real estate evictions in New York City can be long and costly. If a tenant stops paying rent but refuses to leave, evicting a tenant<\/a> can sometimes take one year or longer – during which time the landlord isn\u2019t receiving any rental income on the suite.<\/p>\n

    Good Guy Clauses were originally created by landlords to encourage tenants to willingly vacate the leased space if they become unable to pay the rent. GGCs allow landlords and tenants to avoid potentially costly and lengthy lawsuits, and allow the landlord to re-let the suite quickly.<\/p>\n

    Lastly, if a tenant with a GGC vacates early but doesn\u2019t act like a Good Guy, the landlord can still go after the principal\u2019s personal assets.<\/p>\n

    What Are the Things to Watch Out for in a GGC?<\/h4>\n

    The benefits of having a GGC in a lease don\u2019t occur automatically. A Good Guy Clause needs to be exercised by the tenant by giving proper notice to the landlord. The notice period can sometimes be up to six months in advance, depending on the terms of the specific GGC.<\/p>\n

    Tenants who sign Good Guy Guarantees should also remember:<\/p>\n