Document background
The Personal Guarantee Rental Agreement is a crucial risk management tool in Hong Kong's property rental market, used when additional security beyond a standard tenancy agreement is required. This document is particularly relevant when dealing with new businesses, overseas tenants, or situations where the tenant's financial standing alone may not satisfy the landlord's requirements. The agreement operates under Hong Kong's legal framework, incorporating elements from both common law and statutory requirements, particularly the Landlord and Tenant (Consolidation) Ordinance and Contract Law principles. It typically includes comprehensive details about the guaranteed obligations, enforcement mechanisms, and the specific circumstances under which the guarantee can be called upon. This type of agreement is commonly used in both commercial and residential contexts, providing landlords with an additional layer of security while allowing tenants who might otherwise not qualify to enter into rental agreements.
