A guarantor (sometimes called a co-signer) agrees to pay rent and other lease obligations if the tenant does not. Critically, a guarantor is not a "tenant" under Ontario's Residential Tenancies Act, so the Landlord and Tenant Board cannot make an order directly against them — a landlord must sue a guarantor separately, in Small Claims Court or Superior Court, for amounts owed. A clearly drafted guarantee agreement, specifying exactly what the guarantor is responsible for, is essential for both sides.
- A guarantor is not a "tenant" under the Residential Tenancies Act, and the LTB cannot make orders directly against them.
- A landlord must sue a guarantor separately in court — Small Claims Court or Superior Court, depending on the amount — to enforce a guarantee.
- A guarantor's liability is generally limited to what the guarantee agreement says — rent, damages, or other specific obligations.
- If the lease and guarantee do not clearly state that liability continues through renewals or a month-to-month conversion, that continuation is not presumed.
- A well-drafted guarantee should specify whether the guarantor covers the whole tenancy or only the original fixed term.
- Guarantors should understand they may remain on the hook for a lease long after the tenant moves in, unless the agreement says otherwise.
What Is a Guarantor?
A guarantor (sometimes called a co-signer) is a person who agrees to be responsible for a tenant's obligations under a lease — most commonly unpaid rent — if the tenant fails to pay. Landlords often require a guarantor for tenants with limited income, limited credit history, or limited Canadian rental history, including many students and newcomers.
Why a Guarantor Is Not a "Tenant"
This is the single most important — and most frequently misunderstood — point about guarantors in Ontario. A guarantor is not a "tenant" within the meaning of the Residential Tenancies Act, even though their name may appear on the lease. This has a major practical consequence: the Landlord and Tenant Board does not have jurisdiction to make orders directly against a guarantor.
While the LTB has exclusive jurisdiction over most landlord-tenant matters, that jurisdiction does not oust the ordinary courts' ability to hear a claim against a guarantor — because a guarantor was never a party to the tenancy itself in the way a tenant is.
How Landlords Actually Enforce a Guarantee
Because the LTB cannot act against a guarantor, a landlord seeking to collect from one must file a separate court claim — in Small Claims Court for amounts up to $50,000, or the Superior Court of Justice for larger amounts. This is a materially different process from an LTB application against a tenant, with its own filing, service, and evidentiary requirements. See our related guide on collecting unpaid rent after a tenant leaves for how this process works in practice.
What Does the Guarantee Actually Cover?
A guarantor's liability is generally limited to what the guarantee document actually says — commonly rent arrears, but potentially also damages or other lease breaches, depending on the wording. If a guarantee clause is vague or only references "rent," a landlord may struggle to hold the guarantor responsible for other losses, such as property damage.
If the lease and guarantee do not clearly state that the guarantor's liability continues through a lease renewal or a conversion to month-to-month tenancy (as happens automatically when a fixed term ends and the tenant stays — see our guide on overholding tenancies), that continuation should not be presumed and can become a significant point of dispute.
What a Proper Guarantee Agreement Should Say
A well-drafted guarantee, whether for a landlord's or a guarantor's protection, should clearly state:
- Whether the signer is a tenant, co-signer, or guarantor — and what that specifically means
- Exactly what obligations are covered (rent only, or rent plus damages and other breaches)
- Whether liability continues through renewals or a month-to-month conversion
- Whether notice must be given to the guarantor before the landlord pursues them
- Whether there is any cap on the total amount the guarantor could owe
A parent co-signs their child's one-year student lease as guarantor. The lease is silent on renewals, and the child stays on month-to-month after the year ends without a new lease. When rent later falls into arrears, the landlord tries to pursue the parent — but because the guarantee did not clearly extend beyond the original term, whether it still applies becomes a genuine point of dispute the parties need to resolve, potentially in court.
If You're Being Asked to Guarantee a Lease
Before signing, read the guarantee agreement closely for exactly what you are agreeing to cover, whether your obligation continues past the original lease term, and whether there is any cap on your exposure. If anything is unclear, ask for it to be clarified in writing before you sign — not after a dispute arises.
Whether you're drafting a guarantee, enforcing one, or unsure of your own exposure as a guarantor, call our Toronto landlord & tenant lawyers at 416-274-2222.
Frequently Asked Questions
In Ontario residential leasing, the terms are often used interchangeably to mean the same thing — a person who agrees to be responsible for the tenant's obligations, most commonly rent, if the tenant fails to pay. The specific label used in a document matters less than what the agreement actually says.
No. A guarantor is not a "tenant" within the meaning of the Residential Tenancies Act, so the LTB does not have jurisdiction to make orders directly against them. A landlord seeking to enforce a guarantee must sue the guarantor in Small Claims Court or Superior Court instead.
Not necessarily — this depends on the specific wording of the guarantee agreement. Some guarantees make the guarantor primarily liable alongside the tenant; others may require the landlord to exhaust efforts against the tenant first. Read the agreement carefully.
It depends entirely on what the guarantee agreement says. A poorly drafted guarantee that only mentions "rent" may not extend to property damage or other lease breaches — precise drafting matters enormously for both landlords and guarantors.
Not automatically, unless the agreement says so. If the lease and guarantee do not clearly limit the guarantee to the original fixed term, a guarantor may remain liable even after the tenancy converts to month-to-month or is renewed.
Generally only with the landlord's agreement, since the guarantee is a contract the landlord relied on when approving the tenancy. Discuss any change in circumstances with the landlord directly and get any release in writing.
Read the guarantee agreement closely for exactly what obligations are covered, whether liability continues through renewals, and whether there is any cap on the amount you could owe. If anything is unclear, get it clarified in writing before signing.