Ontario lease - guarantor on standard lease agreement 2229e

a_mighty_engr

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Sep 21, 2018
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#1
Hi fellow REIN investors.

I'm a very small time landlord, with 2 property that I have in GTA (greater toronto area). and I've always had reasonable success at screening tenants and picking the right tenants. One of my properties is in scarborough town area which is a very popular landing spot for new immigrants. And as such, some of these tenants do no have much credit history in canada, but are seemingly very well educated and capable to become established in Canada. So I ask for a guarantor to add another level of protection incase they cannot pay rent.

In the past, I would draft up in the lease to include a lease guarantor that will agree to pay rent in the event the tenant cannot. But in this new era with mother Wynne legislation requiring the use of the standard lease form 2229e, there are NO provisions for guarantors, and very limited ability to add the responsibility of the guarantor into this fixed lease agreement.

the only section that I could add additional terms are in section 15 "additional terms", but that clearly spells out its only applicable to tenants, so linking a guarantor into the section may not have sufficient linkage for the guarantor to be liable for their responsibilities.

What do others do? I am considering adding the guarantor as a tenant, but that doesn't sit well with me since they won't be residing in the unit.
 
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Tina Myrvang

Client Care Lead
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Nov 15, 2010
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#2
Hello,

The Guarantor/Co-Signor should state that they are guaranteeing all of the obligations of the tenant in the attached lease shown as Schedule A. Then just attach the lease to the guarantee and call it Schedule A.
 

a_mighty_engr

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#3
Tina,

Thank you for your reply.. so you are suggesting I do a dedicated agreement with the guarantor . no need to worry about the guarantor in the lease! makes sense!

Thanks.
 

Tina Myrvang

Client Care Lead
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Nov 15, 2010
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#4
That was straight from our Legal expert in Ontario when he presented the new lease in April. This is a question we get a lot. Attached the Guarantor as a Schedule A.

Have a great day.