How does a Good-Guy Guaranty burn-off protect my personal net worth in a commercial lease?

A standard full-term unconditional personal guarantee makes you personally liable for all remaining years of Base Rent, NNN/CAM charges, and unamortized TI/brokerage costs even if your LLC closes. A Good-Guy Guaranty with a 12-to-24 month rolling burn-off caps your personal liability to rent accrued prior to vacating (with 3 months notice and broom-clean surrender) and extinguishes the personal guarantee after 12 to 24 consecutive months of on-time rent payments.

What hidden commercial lease clauses can void a Good-Guy Guaranty?

Landlords frequently insert conditions precedent requiring 100% repayment of unamortized tenant improvement (TI) allowances, brokerage commissions, and free rent abatement before accepting keys, or use Section 19 Holdover penalties (200%-250% rent) to re-trigger full personal recourse.

Good-Guy Guaranty Redline PlaybookFree Commercial Tenant Personal Asset Defense Tool

Commercial Lease Good-Guy Guaranty & 12-Month Burn-Off Calculator

Signing an uncapped 5-year Personal Guaranty pierces your LLC veil and puts your personal home, savings, and brokerage accounts on the hook for every remaining year of rent. Model your 5-year personal net-worth exposure vs. a 12-month Good-Guy Guaranty burn-off below—then scan your lease PDF free.

Commercial Lease Personal Guaranty Inputs

Monthly Base Rent ($/mo)$8,500/mo

Monthly NNN / CAM / Tax Pass-Through ($/mo)$2,100/mo

Lease Term (Years)5 Years

Unamortized TI & Leasing Commission Clawback$42,000

Good-Guy Burn-Off Window (Clean Rent Months)12 Months (3-Mo Surrender Notice)

Full-Term Personal Liability

$717,322

Personal home & savings at risk across 5 yrs

With 12-Mo Good-Guy Burn-Off

$31,800

Capped at 3-mo surrender notice after burn-off

Personal Net-Worth Protected

$685,522

Shielded from personal judgment & acceleration

Year-by-Year Personal Asset Exposure (Unredlined vs. Good-Guy Burn-Off)

Lease Year 1

Unredlined: $717,322Good-Guy Redline: $148,200

Lease Year 2

Unredlined: $590,122Good-Guy Redline: $32,754

Lease Year 3

Unredlined: $459,106Good-Guy Redline: $33,737

Lease Year 4

Unredlined: $324,160Good-Guy Redline: $34,749

Lease Year 5

Unredlined: $185,165Good-Guy Redline: $35,791

Copy-Paste Good-Guy & 12-Month Burn-Off Rider

“LIMITED GOOD-GUY GUARANTY & ROLLING BURN-OFF: Notwithstanding anything to the contrary, Guarantor's personal liability under this Guaranty shall be strictly limited to Base Rent and Additional Rent accruing prior to the Surrender Date, provided Tenant delivers 3 months prior written notice and surrenders the Premises broom-clean and free of mechanics' liens ("Good-Guy Release"). Furthermore, this Personal Guaranty shall automatically burn off and terminate in full upon Tenant completing 12 consecutive months of timely Base Rent payments without an uncured monetary Event of Default.”

Want to check if Section 19 (Holdover) or Section 24 voids your Good-Guy release?Scan Your Contract Free

Scan Your Contract Free — Check Section 24 & Exhibit G

Upload Your Commercial Lease PDF or .docx to Redline Your Personal Guaranty

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Active Engine: ScopeCore™ 4.0 (IRC Code & Xactimate Supplement Graph)

Multi-Hop IRC / IICRC Code GraphNative PDF & Word (.docx)Round-2 Desk Adjuster Rebuttal

1. Select Claim Scope Playbook & Protected RoleAuto-Tailored to Your Claim TypeRoofing, Hail & Wind Scope • Protecting: Policyholder / Roofing & Restoration Contractor

2. Input Carrier Estimate (Xactimate PDF, Word .docx, Photo, or Text)

Upload PDF / Word (.docx)

Drop Carrier PDF / .DOCX anywhere, or press Cmd+V / Ctrl+V to paste estimate text

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CARRIER PROPERTY LOSS ESTIMATE — XACTIMATE ROOF & EXTERIOR SCOPE
CLAIM NO: HO-2026-884192 | LOSS TYPE: WIND & HAIL STORM | PRICE LIST: TXDF8X_OCT26

LINE ITEM 1 — ROOFING TEAR-OFF & LAMINATED SHINGLE REPLACEMENT (RFG 300S)
Carrier approves tear-off and replacement of 32.00 SQ of 30-year laminated architectural shingles on the Dwelling Roof. Shingle replacement is calculated at exact net EagleView surface area (32.00 SQ) with zero percent (0%) waste allowance for hips, valleys, or starter/ridge cuts. Starter course shingles and hip/ridge cap shingles are included within field shingle waste and will not be paid as separate line items.

LINE ITEM 2 — EAVE/RAKE DRIP EDGE & ICE/WATER BARRIER OMISSION (IRC R905.2.8.5 / R905.1.2)
Carrier estimate excludes Aluminum Drip Edge (RFG DRIP - 280 LF) and Ice & Water Leak Barrier (RFG IWS - 640 SF). Adjuster note: "Existing roof did not have visible drip edge or ice & water shield prior to loss; policy only owes for direct physical like-kind replacement and excludes municipal IRC building code upgrades unless separately endorsed and already incurred."

LINE ITEM 3 — FLASHING, TURBINE VENTS & PIPE JACK RE-USE
Existing step flashing (96 LF), chimney counter-flashing, valley metal, and lead plumbing pipe jacks shall be salvaged and re-installed with the new roof system. Detach and reset of 5" seamless aluminum gutters (185 LF) is excluded as unnecessary for drip edge or shingle installation.

LINE ITEM 4 — GENERAL CONTRACTOR OVERHEAD & PROFIT (10% & 10% O&P)
General Contractor Overhead (10%) and Profit (10%) are excluded from this estimate. Adjuster note: "Although scope includes Roofing, Gutter/Downspout, Exterior Fascia Paint, and Interior Garage Ceiling Drywall trades, the work does not require sufficient complexity to warrant a General Contractor."

LINE ITEM 5 — ACV PAYMENT & NON-MATERIAL LABOR DEPRECIATION
Replacement Cost Value (RCV) is calculated at $14,280.00. Carrier applies a forty-five percent (45%) depreciation factor ($6,426.00) across BOTH physical shingle materials AND non-material roofing tear-off/installation labor, plus a $2,500.00 Deductible, resulting in a Net Actual Cash Value (ACV) payment of $5,354.00.

Optional — Property State or Claim Context (e.g., "34 SQ Texas hail roof claim" or "Florida Category 3 water loss")

100% Stateless & Private • Saves $1,500 – $4,500 (or 10%–15% PA fee) vs. Public Adjuster fee