Good Guy Guaranty Calculator

Good-guy guaranty caps protection. This calculator sizes.

Monthly rent

Notice period months

Cure period months

Percentage covered

Guaranty ceiling

$70,000

Base exposure

$70,000

Months covered

How the math works

Base exposure = monthly rent × (notice + cure months). Ceiling = base × coverage %.

Typical good-guy: 3 months notice + 2 months cure × $14k rent = $70k ceiling. Compared to full 5-year guaranty ($840k potential), good-guy is 92% less protection — but it's symmetric tenant incentive. Good for mid-market office, Class B retail.

How to Use

Enter monthly rent.
Enter notice period months.
Enter months to cure if default.
Enter percentage covered.
Read guaranty ceiling.

Frequently Asked Questions

Good-guy mechanics?

Tenant personally guarantees amounts owed through surrender date. If tenant gives notice and returns keys, guarantor released. If tenant 'holds out' (stays without paying), guarantor liable until actual vacate. Common in NYC office, expanding elsewhere.

Covers what?

Rent, CAM, tax/insurance reconciliation, damages, broker fee reimbursement owed by tenant at surrender. Does NOT cover: future rent (after surrender), consequential damages, lost profits. Limited scope vs full guaranty.

Why landlord accepts?

Captures tenant's self-interest in leaving quickly once defaulting. Reduces landlord legal cost (eviction vs orderly surrender). Tenant's guarantor also motivated — save guaranty by advising tenant to vacate. Lower-risk leases where some protection better than none.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.