Tenant rejects personal guarantee for option, but accepts for initial lease term.

[Nikolas Engel]

Folks,

I am negotiating an owner-operated restaurant lease and tenant agrees to a personal guarantee for the initial lease term of five years but rejects a guarantee for the two options (five year each). We had not talked about it during the LOI negotiations, the issue popped up during the draft lease review process. Obviously it is in my best interest as LL to have a guarantee in place for the entire lease period, including options.

How would you deal with a situation like this? 

[Don Konipol]

Quote from @Nikolas Engel:

Folks,

I am negotiating an owner-operated restaurant lease and tenant agrees to a personal guarantee for the initial lease term of five years but rejects a guarantee for the two options (five year each). We had not talked about it during the LOI negotiations, the issue popped up during the draft lease review process. Obviously it is in my best interest as LL to have a guarantee in place for the entire lease period, including options.

How would you deal with a situation like this? 

It’s a negotiable point.  You can accept the no personal guarantee but counter with a slightly elevated lease amount, then offer he choice; lower amount with guarantee, higher without