A California commercial lease agreement records all terms surrounding the rental of a property for business-related use. The landlord and tenant, as well as any other relevant parties, may enter into a lease contract upon finalizing negotiations and establishing rental costs — among many other terms. Before binding themselves to a tenant, landlords must first adequately vet potential tenants through background checks in order to verify financial and criminal history. If a tenant fails to meet standards, the landlord may still accept upon presented a personal guarantee document in which a guarantor vouches for said tenant and undertakes liabilities. Acceptance of a guaranty is fully left to the landlord’s discretion. Once all matters are resolved, the parties must sign the lease agreement into effect.
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