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

961 Washington Avenue

$2,895 No Fee

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1

Flatbush

200 Linden Boulevard

$2,800 No Fee

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1

East Flatbush

5002 Snyder Avenue

$1,895 No Fee

Studio |

1

Stuyvesant Heights

75 Ralph Avenue

$2,935 No Fee

2 |

1

Prospect Park South

170 Parkside Avenue

$2,995 No Fee

2 |

1

Boerum Hill

166 Hoyt Street

$2,700 No Fee

Studio |

1

Fort Hamilton

329 93rd Street

$2,000 No Fee

1 |

1

Cypress Hills

300 Lincoln Avenue

$2,350 No Fee

1 |

1

Flatbush

156 Martense Street

$2,900 No Fee

2 |

2

Weeksville

1598 Bergen Street

$2,600 No Fee

2 |

1

Bay Ridge

359 Ovington Avenue

$2,000 No Fee

Studio |

1

Crown Heights

201 Eastern Parkway

$2,350 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

309 East 9th Street

$2,995 No Fee

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1

East Village

185 Avenue C

$2,795 No Fee

Studio |

1

East Village

422 East 14th Street

$2,750 No Fee

Studio |

1

East Village

534 East 14th Street

$2,550 No Fee

Studio |

1

East Village

620 East 11th Street

$2,800 No Fee

1 |

1

East Village

620 East 11th Street

$2,840 No Fee

2 |

1

East Village

122 East 7th Street

$2,960 No Fee

Studio |

1

East Village

336 East 5th Street

$2,900 No Fee

1 |

1

East Village

336 East 6th Street

$2,100 No Fee

Studio |

1

East Village

209 East Fourth Street

$2,700 No Fee

Studio |

1

East Village

531 East 13th Street

$2,595 No Fee

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1

East Village

139 Second Avenue

$3,000 No Fee

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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

220 West 122nd Street

$2,085 No Fee

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1

South Harlem

348 West 118th Street

$2,500 No Fee

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1

South Harlem

201 West 120th Street

$2,500 No Fee

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1

South Harlem

16 West 119th Street

$1,900 No Fee

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1

South Harlem

1465 Fifth Avenue

$2,822 No Fee

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1

South Harlem

243 West 115th Street

$2,850 No Fee

2 |

1

South Harlem

279 West 117th Street

$2,489 No Fee

Studio |

1

South Harlem

80 Saint Nicholas Avenue

$2,600 No Fee

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1

South Harlem

1405 Fifth Avenue

$2,767 No Fee

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1

South Harlem

200 West 113rd Street

$2,295 No Fee

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1

South Harlem

3 West 122nd Street

$3,000 No Fee

2 |

1

South Harlem

2216 Frederick Douglass Boulevard

$2,712 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

Hell’s Kitchen

415 West 47th Street

$2,295 No Fee

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1

Yorkville

339 East 90th Street

$2,500 No Fee

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1

Upper West Side

129 West 87th Street

$2,500 No Fee

3 |

1

Washington Heights

505 West 161st Street

$2,100 No Fee

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1

East Village

219 East 10th Street

$2,450 No Fee

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1

Hamilton Heights

3694 Broadway

$2,600 No Fee

2 |

1

Washington Heights

573 West 156th Street

$2,495 No Fee

2 |

1

West Chelsea

415 West 24th Street

$2,450 No Fee

Studio |

1

Lenox Hill

791 Lexington Avenue

$2,750 No Fee

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1

Lenox Hill

421 East 65th Street

$2,500 No Fee

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1

Gramercy Park

151 East 20th Street

$2,600 No Fee

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1

West Village

42 Horatio Street

$2,495 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.