There are no guarantees in life. But there *are* guarantors. If your credit or lack thereof has you worried about securing a rental in NYC, don’t fret. You do have options that may help while you work on improving your credit score higher. But first, you may be wondering, what is a guarantor? We will delve into all that and more — we (ahem) guarantee it. 

Brooklyn Rentals Under $3000 on StreetEasy Article continues below

Bedford-Stuyvesant

103 Jefferson Avenue

$2,915 No Fee

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Flatbush

271 East 28th Street

$2,799 No Fee

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2

Ditmas Park

680 East 21st Street

$2,499 No Fee

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1

Ditmas Park

680 East 21st Street

$2,699 No Fee

2 |

1

Fort Hamilton

111 Marine Avenue

$2,150 No Fee

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1

Fort Hamilton

151 89th Street

$2,100 No Fee

2 |

1

Flatbush

2001 Nostrand Avenue

$2,626 No Fee

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1

Crown Heights

2081 Dean Street

$2,795 No Fee

3 |

1

Crown Heights

1356 Pacific Street

$2,500 No Fee

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1

Fort Greene

58 Vanderbilt Avenue

$2,815 No Fee

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1

Crown Heights

988 Bergen Street

$2,275 No Fee

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Crown Heights

1556 Atlantic Avenue

$2,400 No Fee

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Why Would You Need a Guarantor?

There are reasons a person might need a guarantor. And they all relate to money, credit, or both. For example, perhaps you’re a full-time student and don’t have an income of your own that meets the 40 times rent requirement equation. (FYI, landlords use the formula to determine how much rent you can afford.) Maybe you shied away from credit cards and haven’t established a credit score yet. Or, possibly, your credit score is very low. (You may find it hard to rent an apartment if your credit score is lower than 650.) In those situations, knowing what is a guarantor can help.

What Is a Guarantor?

The solution to getting an apartment with poor or no credit? It just may be asking a friend or family member to help as a lease guarantor. That’s someone who guarantees payment on the lease if you can’t come up with the cash. The person doesn’t need to be a relative, but they generally need to reside within New York State. That way, a landlord can easily collect from the guarantor should the need arise.

There Is a Hitch

But keep in mind, your guarantor needs to meet a specific financial requirement in addition to having good credit. “They have to make 80 times the rent,” says Nikki R. Thomas, Licensed Associate Real Estate Broker for The Corcoran Group in Manhattan and Brooklyn. “Landlords are looking for someone who is super-duper qualified, so they can pay your rent when you can’t. That’s why they want double the 40 times rent requirement typically required from renters.” 

East Village Rentals Under $3000 on StreetEasy Article continues below

East Village

272 East 3rd Street

$2,575 No Fee

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East Village

101 Avenue D

$2,900 No Fee

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1

East Village

430 East 13th Street

$2,495 No Fee

Studio |

1

East Village

112 East 7th Street

$2,550 No Fee

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1

East Village

620 East 11th Street

$2,850 No Fee

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1

East Village

403 East 8th Street

$2,600 No Fee

Studio |

1

East Village

511 East 12th Street

$2,750 No Fee

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1

East Village

103 East Second Street

$2,995 No Fee

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1

East Village

120 East Fourth Street

$2,875 No Fee

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East Village

319 East 5th Street

$2,600 No Fee

Studio |

1

East Village

624 E 11th Street

$2,699 No Fee

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1

East Village

624 E 11th Street

$2,699 No Fee

Studio |

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What’s the Difference Between a Guarantor and a Co-Signer?

Unlike a guarantor, who lives elsewhere but is on the hook if you fail to pay your rent, a “co-signer” on a rental is a co-tenant. They’re on the lease with you and live in the apartment. Both parties are responsible for paying the rent. 

Here’s an example from the famous New York renters on the show “Friends.” If Monica Gellar and Rachel Green both signed the lease on their apartment, they would be co-signers. And if actor Joey Tribiani were hard up for cash to get his own apartment in the building, his more flush pal Chandler Bing could act as his guarantor. If Joey loses his “Days of Our Lives” gig and can’t pay the rent, he might ask: “what is a guarantor?”…and Chandler would have to pony up his rent.

Co-Signer Also Means Something Else

When it comes to buying a home, though, the co-signer term means something different. It’s more akin to a guarantor. When the primary borrower does not financially qualify for a mortgage, the lender will require someone to “co-sign” the loan. That person then becomes liable for the mortgage payment if the primary borrower defaults.

South Harlem Rentals Under $3000 on StreetEasy Article continues below

South Harlem

251 West 117th Street

$2,766 No Fee

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South Harlem

1295 5th Avenue

$2,827 No Fee

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South Harlem

309 West 121st Street

$2,999 No Fee

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South Harlem

4 West 121st Street

$2,995 No Fee

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South Harlem

257 West 113rd Street

$2,300 No Fee

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1

South Harlem

162 Lenox Avenue

$2,500 No Fee

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1

South Harlem

69 West 119th Street

$2,250 No Fee

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South Harlem

2054 Adam C Powell Boulevard

$2,500 No Fee

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South Harlem

136 West 118th Street

$2,500 No Fee

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South Harlem

215 West 116th Street

$2,756 No Fee

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South Harlem

138 West 112nd Street

$2,950 No Fee

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South Harlem

2192 Frederic Douglas Boulevard

$3,000 No Fee

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Can You Combine Guarantors?

One question that often comes up when you’re curious about what is a guarantor is whether you can combine guarantors. In short: yup! You can. One guarantor’s income may be too wee for your landlord’s 80 times the rent policy. So you can ask another guarantor to join — like your Mom and your Aunt Linda. It’s a fairly common practice. If your rent is $2,500, your guarantor would need an annual income of $200,000. That’s a lot of money.

If that doesn’t work, showing that you have other ways of making your rent payment may get you approved. If you or your parents have significant savings, share the account statements with your landlord. It’s worth asking, anyway. After all, this is New York City — a place where anything’s possible.

Manhattan Rentals Under $3000 on StreetEasy Article continues below

Yorkville

326 East 85th Street

$2,700 No Fee

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Yorkville

418 East 89th Street

$2,500 No Fee

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Yorkville

326 East 85th Street

$2,800 No Fee

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Turtle Bay

905 First Avenue

$2,500 No Fee

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Washington Heights

838 Riverside Drive

$2,595 No Fee

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Washington Heights

520 West 174th Street

$1,881 No Fee

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Central Harlem

102 West 134th Street

$1,960 No Fee

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East Harlem

138 East 112nd Street

$2,449 No Fee

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Upper West Side

311 West 95th Street

$1,800 No Fee

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Central Harlem

67 West 126th Street

$2,100 No Fee

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Hell’s Kitchen

451 West 46th Street

$2,575 No Fee

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Upper West Side

41 West 86th Street

$2,939 No Fee

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Can Your Guarantor Be Out of State or Out of the Country?

People from all over the world come to live in NYC. And you may question if a guarantor can be out of the state or even out of the country. “I have heard of landlords accepting out-of-country guarantors. There are also landlords willing to accept guarantors located anywhere in the U.S., so it doesn’t hurt to ask.”

What if You Don’t Have Anybody To Be Your Guarantor?

Not everybody has a family member or friend they can turn to when they need a guarantor. Evan Rugen, Licensed Real Estate Salesperson with R New York, says you may want to look into getting “an institutional guarantor, which is quite expensive.” But to get your foot in the door of a New York apartment, it’s worth considering. For a fee, companies like Insurent and The Guarantors may be able to assist in easing your new landlord’s worries so that you can fret about more important things. Like what to serve at your housewarming party.