A Personal Guaranty of Lease is used by the Landlord to “secure” his rights as Landlord as against someone other than the Tenant. In other words, the Landlord can require the parent, boss, friend, or sibling of the Tenant (or anyone else) to sign the Personal Guaranty of Lease. This person is referred to as a “Guarantor.” If the Tenant then fails to pay rent, the Landlord can hold the Guarantor liable for the unpaid amount.
In a commercial lease situation, where the Tenant is usually a business entity, the Landlord will normally require that the President / Owner of the company sign the Personal Guaranty of Lease. The result is that the business entity is liable for rent, as is the individual owner or president.
Thus, a Personal Guaranty of Lease is simply a means of ensuring the Landlord that if the Tenant defaults, someone else is required to come forward and pay the rent.