Lease Costs & Terms

Personal Guarantee

Also known as: PG, lease personal guarantee

Definition

A personal guarantee is a clause in a commercial lease where the business owner personally promises to cover the rent if the business cannot. It puts your personal assets, such as your home or savings, on the line for the company's lease obligations.

A personal guarantee is one of the riskiest things a small business owner can sign. It means that if your business cannot pay the rent, the landlord can come after you personally: your home, your savings, your personal credit. For a growing company, that is a heavy bet to make on a multi-year industrial lease.

Why it matters for small businesses

Traditional landlords lean on personal guarantees because long leases are risky for them. But that risk gets transferred straight onto the owner, often at the exact moment the business can least afford it.

The WareSpace difference

WareSpace requires no personal guarantee. Our small warehouse spaces come on flexible, short-term leases with all-inclusive pricing, so you are never signing your house away to rent space. That is the whole point: room to grow without the personal risk of a conventional lease. Get an instant quote or book a tour to see how it works.

Frequently asked questions

Why do landlords require a personal guarantee?
Landlords use a personal guarantee to reduce their risk on long-term leases, especially with newer or smaller businesses that lack a long credit history. It gives them a way to recover unpaid rent from the owner personally if the business defaults.
How do you avoid a personal guarantee?
Options include negotiating a limited or 'good guy' guarantee, offering a larger deposit, or choosing a flexible short-term lease that does not require one at all. WareSpace leases require no personal guarantee.

Last updated June 24, 2026

A small business owner packing products inside a WareSpace unitWareSpace tenant Prepfort operating inside its warehouse unitWareSpace tenant RoboChef working with production equipment inside its unitWareSpace tenant UniBeauty preparing products inside its warehouse unitWareSpace tenant team members picking inventory inside their unitA WareSpace tenant working among inventory and packing supplies

See your space. Move in the same day.

Book a tour, meet the General Manager, and walk your unit. No personal guarantee, no long-term contract, no pressure.

Available units starting at $1,000/mo, all-inclusive