What’s the Responsibility of the Guarantor?

When a tenant doesn’t meet the standard income or credit requirements for a rental property, they may be asked to provide a guarantor.A guarantor agrees to take on certain financial and legal responsibilities to ensure the terms of the lease are met.

A guarantor (sometimes called a co-signer) is a person who promises to pay rent or cover other financial obligations if the tenant cannot.

This individual essentially guarantees that rent and related costs will be paid in full and on time.

Common guarantors include:

• Parents or relatives
• Close friends
• Employers or sponsors

By signing the lease or a guarantor agreement, the guarantor becomes legally responsible for:

• Paying rent if the tenant misses or is late on payments
• Covering unpaid utilities or damages owed under the lease
• Fulfilling any other financial obligations outlined in the rental agreement

This responsibility typically lasts for the entire term of the lease, including renewals, unless stated otherwise.

Just like the primary tenant, the guarantor must go through a screening process that may include:

• A credit check
• Employment or income verification
• Reference checks

These checks ensure that the guarantor is financially capable of covering the rent if needed.

A guarantor is usually required when the tenant:

• Has a low or limited credit history
• Is new to Canada or has no local rental record
• Has an income below the required threshold for the unit
• Is self-employed and cannot provide stable pay documentation

If the tenant defaults on payments, the landlord can pursue the guarantor for any outstanding amounts owed under the lease.

Under Ontario law, a guarantor’s responsibility normally ends when the fixed-term lease ends — unless the lease or guarantor agreement specifically states that the obligation continues.

At LandLord, our guarantor agreement expressly provides for this continuation. It states that the guarantee “shall survive the expiration of any tenancy agreement” and will continue:

• During any overholding period (when the tenancy automatically becomes month-to-month);
• Through any renewal or extension of the tenancy, whether formal or automatic; and
• For as long as the tenants continue to occupy the premises.
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This ensures that the guarantor’s obligations remain valid if the lease is renewed, extended, or continues month-to-month, providing clarity for all parties and preventing gaps in responsibility.

Guarantors are strongly encouraged to review the lease and guarantor terms carefully before signing and seek independent legal advice if uncertain about their ongoing obligations.

If you’ve been asked to act as a guarantor for someone applying to rent a property through LandLord, the process is the same as a renter’s application.You can follow the steps outlined on this page: How to Complete Your Rental Application Using the LandLord Application Portal.

The only difference is during account creation — under the dropdown menu labeled “I am a…”, select “I am a Guarantor.”

This step is important as it ensures your application is correctly linked to the tenant you’re supporting.