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

Crown Heights

2175 Bergen Street

$2,900 No Fee

2 |

2

Stuyvesant Heights

1875 Atlantic Avenue

$2,700 No Fee

2 |

1

Sunset Park

328 56th Street

$2,550 No Fee

2 |

1

Stuyvesant Heights

823 Hancock Street

$2,100 No Fee

Studio |

1

Bushwick

257 Cooper Avenue

$2,599 No Fee

2 |

1

Bedford-Stuyvesant

10 Claver Place

$2,450 No Fee

1 |

1

Cypress Hills

3073 Fulton Street

$2,850 No Fee

2 |

1

Gravesend

174 Bay 46th Street

$2,699 No Fee

3 |

1

Stuyvesant Heights

676 Lexington Avenue

$2,799 No Fee

2 |

1

Crown Heights

1015 Washington Avenue

$2,667 No Fee

1 |

1

Stuyvesant Heights

801 Monroe Street

$3,000 No Fee

2 |

1

Flatbush

1554 New York Avenue

$2,400 No Fee

1 |

1

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

633 East 11th Street

$2,750 No Fee

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1

East Village

518 East 6th Street

$2,850 No Fee

1 |

1

East Village

622 East 11th Street

$2,900 No Fee

1 |

1

East Village

112 East 7th Street

$2,470 No Fee

Studio |

1

East Village

214 Avenue A

$2,800 No Fee

1 |

1

East Village

222 East 12th Street

$2,888 No Fee

1 |

1

East Village

514 East 13th Street

$2,800 No Fee

1 |

1

East Village

512 East 12th Street

$2,400 No Fee

1 |

1

East Village

122 East 7th Street

$2,960 No Fee

Studio |

1

East Village

122 East 7th Street

$2,650 No Fee

Studio |

1

East Village

543 East 5th Street

$2,700 No Fee

1 |

1

East Village

34 East 7th Street

$2,990 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

125 West 123rd Street

$2,400 No Fee

Studio |

1

South Harlem

69 East 110th Street

$2,500 No Fee

3 |

1

South Harlem

134 West 117th Street

$3,000 No Fee

2 |

1

South Harlem

115 West 117th Street

$2,375 No Fee

Studio |

1

South Harlem

243 West 115th Street

$3,000 No Fee

2 |

1

South Harlem

294 Manhattan Avenue

$2,750 No Fee

Studio |

1

South Harlem

1941 Adam Clayton Powell Boulevard

$2,315 No Fee

1 |

1

South Harlem

91 West 119th Street

$2,400 No Fee

1 |

1

South Harlem

268 West 120th Street

$2,513 No Fee

Studio |

1

South Harlem

444 Manhattan Avenue

$2,786 No Fee

Studio |

1

South Harlem

454 Manhattan Avenue

$2,645 No Fee

Studio |

1

South Harlem

251 West 117th Street

$2,895 No Fee

Studio |

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

Lenox Hill

1332 Third Avenue

$2,850 No Fee

Studio |

1

Gramercy Park

105 East 15th Street

$2,750 No Fee

Studio |

1

Lincoln Square

66 West 69th Street

$2,550 No Fee

Studio |

1

Hudson Heights

4101 Broadway

$2,650 No Fee

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1

Kips Bay

73 Lexington Avenue

$2,350 No Fee

Studio |

1

East Village

112 East 7th Street

$2,470 No Fee

Studio |

1

Hell’s Kitchen

752 Ninth Avenue

$3,000 No Fee

Studio |

2

Carnegie Hill

119 East 89th Street

$3,000 No Fee

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1

Central Harlem

145 West 131st Street

$3,000 No Fee

1 |

1

Yorkville

300 East 86th Street

$2,825 No Fee

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1

East Harlem

2205 Third Avenue

$2,108 No Fee

Studio |

1

East Harlem

375 Pleasant Avenue

$2,172 No Fee

2 |

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.