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

Stuyvesant Heights

314 Lewis Avenue

$2,800 base rent

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Williamsburg

101 Jackson Street

$2,200 base rent

Studio |

1

Flatbush

123 Linden Boulevard

$2,979 base rent

1 |

1

Bedford-Stuyvesant

183 Pulaski Street

$1,950 base rent

1 |

1

Flatbush

358 East 28th Street

$2,600 base rent

1 |

1

Flatbush

215 Lenox Road

$2,450 base rent

Studio |

1

Ocean Hill

197 Hull Street

$2,400 base rent

1 |

1

Bushwick

988 Willoughby Avenue

$2,900 base rent

1 |

1

Bushwick

119 Woodbine Street

$2,999 base rent

1 |

1

Boerum Hill

259 Bergen Street

$2,750 base rent

1 |

1

Brownsville

425 East 96th Street

$2,199 base rent

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1

Crown Heights

274 Albany Avenue

$2,400 base rent

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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

638 East 14th Street

$2,995 base rent

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East Village

638 East 14th Street

$2,695 base rent

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1

East Village

403 East 8th Street

$3,000 base rent

1 |

1

East Village

85 East Third Street

$2,875 base rent

Studio |

1

East Village

131 East 7th Street

$2,700 base rent

1 |

1

East Village

185 Avenue C

$2,995 base rent

1 |

1

East Village

531 East 6th Street

$2,450 base rent

Studio |

1

East Village

338 East 11th Street

$2,750 base rent

Studio |

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East Village

320 East 11th Street

$2,500 base rent

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East Village

149 First Avenue

$2,700 base rent

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

2042 Adam Clayton Powell Boulevard

$2,800 base rent

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South Harlem

21 West 120th Street

$2,800 base rent

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South Harlem

444 Manhattan Avenue

$2,895 base rent

Studio |

1

South Harlem

140 West 123rd Street

$2,795 base rent

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1

South Harlem

10 West 122nd Street

$2,800 base rent

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1

South Harlem

2280 Frederick Douglass Boulevard

$2,950 base rent

Studio |

1

South Harlem

24 West 125th Street

$2,498 base rent

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1

South Harlem

255 West 121st Street

$2,700 base rent

Studio |

1

South Harlem

312 Manhattan Avenue

$2,900 base rent

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1

South Harlem

131 West 116th Street

$2,500 base rent

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South Harlem

104 West 114th Street

$2,550 base rent

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South Harlem

201 West 120th Street

$2,700 base rent

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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

Central Harlem

318 West 138th Street

$2,950 base rent

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Hell’s Kitchen

802 Ninth Avenue

$2,750 base rent

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Lenox Hill

482 East 74th Street

$2,900 base rent

Studio |

1

Central Harlem

304 West 151st Street

$2,695 base rent

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1

Kips Bay

142 East 27th Street

$2,950 base rent

Studio |

1

Central Harlem

40 West 135th Street

$2,723 base rent

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1

Yorkville

303 East 95th Street

$2,750 base rent

Studio |

1

Upper West Side

173 West 88th Street

$2,395 base rent

Studio |

1

Hell’s Kitchen

460 West 49th Street

$3,000 base rent

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Lower East Side

186 Orchard Street

$2,595 base rent

Studio |

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Hamilton Heights

536 West 142nd Street

$2,750 base rent

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East Village

638 East 14th Street

$2,995 base rent

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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.