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

Fort Hamilton

8701 Shore Road

$2,500 No Fee

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1

Stuyvesant Heights

488 Marcus Garvey Avenue

$2,999 No Fee

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1

Sunset Park

420 42nd Street

$3,000 No Fee

2 |

1

Greenwood

875 Fourth Avenue

$2,969 No Fee

1 |

1

Bay Ridge

84 72nd Street

$3,000 No Fee

2 |

1

Bath Beach

2006 Benson Avenue

$2,475 No Fee

3 |

1

Flatbush

186 Lenox Road

$2,800 No Fee

2 |

1

Bushwick

340 Evergreen Avenue

$2,750 No Fee

Studio |

1

Carroll Gardens

306 Bond Street

$2,450 No Fee

Studio |

1

Stuyvesant Heights

63 Lewis Avenue

$2,999 No Fee

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1

Bushwick

1510 Gates Avenue

$2,995 No Fee

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1

Bushwick

1183 Gates Avenue

$2,717 No Fee

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1.5

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

18 First Avenue

$2,550 No Fee

Studio |

1

East Village

632 East 14th Street

$2,995 No Fee

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1

East Village

620 East 11th Street

$2,750 No Fee

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1

East Village

620 East 11th Street

$2,900 No Fee

2 |

1

East Village

32 East 7th Street

$2,950 No Fee

2 |

1

East Village

32 East 7th Street

$2,900 No Fee

1 |

1

East Village

82 East 3rd Street

$2,950 No Fee

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1

East Village

514 East 5th Street

$2,635 No Fee

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1

East Village

45 First Avenue

$2,550 No Fee

Studio |

1

East Village

119 Avenue D

$2,795 No Fee

2 |

1

East Village

526 East 11th Street

$2,675 No Fee

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1

East Village

215 Avenue A

$2,675 No Fee

Studio |

1

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

294 Manhattan Avenue

$2,950 No Fee

Studio |

1

South Harlem

146 West 120th Street

$2,350 No Fee

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1

South Harlem

251 West 117th Street

$2,895 No Fee

Studio |

1

South Harlem

2270 Frederick Douglass Boulevard

$2,650 No Fee

Studio |

1

South Harlem

2074 F Douglas Boulevard

$2,850 No Fee

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1

South Harlem

1770 Madison Avenue

$2,932 No Fee

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1

South Harlem

318 West 117th Street

$3,000 No Fee

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1

South Harlem

15 West 116th Street

$2,967 No Fee

2 |

1

South Harlem

15 West 116th Street

$2,634 No Fee

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1

South Harlem

217 West 123rd Street

$2,750 No Fee

Studio |

1

South Harlem

200 West 113rd Street

$2,300 No Fee

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1

South Harlem

274 West 115th Street

$2,500 No Fee

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1

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

Central Harlem

100 West 139th Street

$2,300 No Fee

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1

Yorkville

432 East 88th Street

$2,650 No Fee

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1

Yorkville

511 East 81st Street

$2,700 No Fee

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1

Hamilton Heights

528 West 150th Street

$2,825 No Fee

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1

Two Bridges

45 Catherine Street

$2,000 No Fee

2 |

1

Chelsea

360 West 28th Street

$2,850 No Fee

Studio |

1

East Harlem

215 East 118th Street

$2,750 No Fee

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1

Upper West Side

47 West 90th Street

$2,900 No Fee

Studio |

1

Hudson Heights

712 West 175th Street

$2,250 No Fee

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1

Lower East Side

170 Delancey Street

$2,795 No Fee

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1

Hamilton Heights

345 West 145th Street

$2,125 No Fee

Studio |

1

Hamilton Heights

555 West 151st Street

$2,429 No Fee

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1

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.