Are you personally liable for your commercial rent during the COVID-19 pandemic?
Most NYC landlords require personal guarantees be entered into by the principals of the tenant entity at the time of lease signing. On May 26, the New York City Council passed a law ostensibly suspending personal guaranty requirements for New York City commercial tenants through the end of September. Tenants whose principals have signed guarantees, however, should not rest easy. Landlords have already challenged the constitutionality of the law, and have crafted arguments to enforce personal guarantees in the face of the City Council’s action. In short, while the “guaranty law” is an important shield for New York City tenants, it does not ensure a guarantor is safe from liability. If your lease has a personal guaranty and you have questions, check out the video below and contact us if you have any questions.
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