Q: I'm being asked to have a guarantor in order to rent an apartment. Can a business be a guarantor or must it be a person?
I'm not referring to a business that acts as a guarantor for a fee, but a business run by an individual who I know personally. Does it have to be in the name of that person who owns the business or could it be under the business name itself?
A: It seems it would be at the discretion of the property owner. The fact the business owner won't do it personally certainly raises a red flag.
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A:
In California, both individuals and businesses can serve as lease guarantors, provided they meet the landlord's financial requirements and can demonstrate their ability to cover the rent if needed.
When using a business as a guarantor, the company must be properly registered and in good standing with the state. The business owner will likely need to provide documentation such as tax returns, bank statements, and proof of income or assets. Keep in mind that many landlords prefer individual guarantors because it's often easier to pursue legal action against a person than a business if payment issues arise.
Your best approach would be to discuss this directly with your potential landlord or property management company, as they may have specific policies regarding business guarantors. If they accept business guarantors, make sure to have all agreements properly documented and reviewed by a legal professional to protect both parties. Remember that regardless of whether you use a business or individual guarantor, the guarantor agreement must be properly executed with clear terms and conditions.
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