Good guy clause

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A good guy clause, typically found in rental agreements in New York City, is a provision that allows a tenant to be released from the liability of completing the agreed upon rental period, assuming the tenant vacates the rented space and leaves it in favorable condition.


Many landlords would rent office space to small companies or start-ups. If those companies got into financial trouble, they would fail to make payments on the property but refuse to give up the space, forcing the property owners/landlords to go through the process of eviction.[1]


The use of a good guy clause allows a renter to be released from liability if a rental is terminated early, giving tenants less apprehension regarding signing a time bound lease, and satisfying the landlord's worries about reclaiming their space "in the same condition in which they would have been had the lease expired in accordance with its terms (e.g., vacant, broom clean and with all amounts due and owing by tenant paid up to the date of expiration, etc.)".[2]


  1. ^ "Defining the Good Guy Clause". Fountain Realty Group. Retrieved 4 June 2013.
  2. ^ "The rise of the "good guy" guarantee in commercial leasing transactions". Lexology. Retrieved 4 June 2013.