Changing or Terminating Your Joint Guarantor in a Rental Lease — Procedures and Important Considerations

When entering a rental lease, many people ask a parent or acquaintance to serve as a joint guarantor. However, as time passes and circumstances change, situations often arise where tenants think, "I want to change my guarantor" or "I want to release my guarantor from this obligation."

In fact, changing or terminating a joint guarantor is not something a tenant can decide unilaterally — landlord consent is required. This article explains the procedures for those considering a change or termination, along with solutions for common situations.

Landlord Consent Is Required to Change or Terminate a Joint Guarantor

In a rental lease, a joint guarantor is positioned as part of a three-party agreement between the tenant, landlord, and guarantor. Even if the guarantor says "I want to quit being a guarantor," the guarantor's legal obligations continue unless the landlord consents to the release.

Similarly, even if a tenant wants to change guarantors, they cannot do so without the landlord's approval. Changes cannot be made based on the unilateral will of either the tenant or the guarantor.

Common Reasons for Changes or Terminations and Solutions

Case 1: Your Guarantor Has Aged and You're Concerned About Their Income or Financial Capacity

This applies when a parent is your guarantor, but due to retirement or health changes, you worry about whether they can respond in case of emergency.

Solution: The practical approach is to either arrange an alternative guarantor (such as a sibling or acquaintance) or propose switching to a guarantor company. Most property management companies and landlords accept guarantor company services.

Case 2: Your Relationship with Your Guarantor Has Deteriorated or Been Severed

This applies when your relationship with a family member who is your guarantor has deteriorated, you can no longer contact them, or the guarantor themselves has expressed wanting to step down.

Solution: First, honestly explain the situation to your property management company or landlord, and discuss switching to an alternative guarantor or guarantor company. Don't handle this alone — consulting early prevents further relationship deterioration.

Case 3: You Want to Switch to a Guarantor Company

In recent rental leases, guarantor company services have become increasingly standard. Even if your current lease uses only an individual guarantor, there may be room to negotiate switching to a guarantor company at renewal time.

Solution: You can request a switch to a guarantor company during lease renewal negotiations. However, remember to confirm that the guarantor company will conduct a screening process and that guarantor fees will apply.

Steps for Changing Your Guarantor

1. Notify your property management company or landlord of your desire to change (in writing, not verbally)
2. Provide information about the alternative guarantor (name, address, occupation, income, etc.)
3. Wait for the landlord's review and approval (screening criteria vary by landlord)
4. Create and sign a change agreement and new guarantor agreement (usually the property management company provides the template)
5. Notify the former guarantor of release (confirm that the agreement clearly states the release of the former guarantor)

Costs and Screening for Switching to a Guarantor Company

Switching to a guarantor company involves costs. Generally, an initial guarantor fee (typically around 0.5 to 1 month's rent) is charged at the time of agreement, and many plans include ongoing annual renewal fees or monthly charges. Amounts and plan structures vary by guarantor company, so be sure to get a quote before switching and compare the total cost against continuing with an individual guarantor.

Additionally, using a guarantor company requires screening. The screening typically evaluates the following:

• •The balance between your rent and income (generally, rent should not exceed one-third of your monthly income)
• •Employment stability, such as your job type and tenure
• •Your rental payment history (some guarantor companies that are credit-related may check your credit information)

Even if you're denied, you may be offered guarantor companies with different screening criteria, so don't give up after one rejection — consult with your property management company.

2020 Civil Code Reform: Ceiling Amount for Individual Guarantees Is Now Mandatory

Under the revised Civil Code that took effect in April 2020, individual guarantors are now required to set a ceiling amount (maximum limit). This clarifies the upper limit of the guarantor's liability.

Guarantor agreements for rental leases concluded or renewed after April 2020 must include a ceiling amount. Individual guarantee agreements without this notation may be void. When renewing an older lease, be sure to verify this as well.

When Your Guarantor Asks to Step Down

Even if your guarantor says they want to step down, as mentioned earlier, they cannot unilaterally withdraw. However, if the guarantor has lost their capacity to guarantee due to serious illness or dementia, landlords typically expect practical solutions (arranging an alternative guarantor or switching to a guarantor company).

In such cases, consulting your property management company or landlord early is essential.

Common Pitfalls in the Change Process

The following stumbling blocks commonly occur in actual procedures, but most can be prevented by knowing about them in advance.

• •Settling for only verbal agreement: Merely having the landlord agree verbally can lead to problems later. Always exchange a written change agreement and new guarantor agreement, and keep copies for your records.
• •Former guarantor's release is not documented in writing: Even with a new guarantor in place, if the release of the former guarantor's obligations isn't clearly stated in writing, you risk unintentionally continuing as a dual-guarantee situation.
• •Missing the renewal window: Lease renewal is the ideal time to reconsider guarantee terms. Don't wait until renewal documents arrive — start consulting 2–3 months before renewal to proceed with adequate time.
• •Overlooking ongoing costs after switching to a guarantor company: While an individual guarantor costs nothing, a guarantor company charges an initial fee plus ongoing renewal fees. If you plan to stay long-term, factor in the total cost.

Conclusion

Changing or terminating a joint guarantor is not a decision the tenant and guarantor can make alone — landlord consent and formal procedures are essential. When you notice changing circumstances, consult your property management company or landlord early and present alternative guarantee arrangements (a different guarantor or a guarantor company) for a smooth transition. Don't carry the burden alone — open communication when changes arise is key to maintaining a positive long-term rental relationship.