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

Flatbush

561 East 26th Street

$2,500 No Fee

2 |

1

Bushwick

287 Cornelia Street

$2,175 No Fee

1 |

1

Flatbush

1471 Nostrand Avenue

$2,400 No Fee

1 |

1

Midwood

1792 Ocean Avenue

$2,429 No Fee

1 |

1

Midwood

1792 Ocean Avenue

$2,995 No Fee

2 |

2

Flatbush

286 Linden Boulevard

$2,495 No Fee

1 |

1

Stuyvesant Heights

321 Pulaski Street

$2,550 No Fee

2 |

1

Williamsburg

53 Graham Avenue

$2,400 No Fee

1 |

1

Prospect Heights

195 Underhill Avenue

$2,498 No Fee

Studio |

1

Crown Heights

2303A Pacific Street

$2,350 No Fee

2 |

1

Bushwick

1198 Putman Avenue

$2,900 No Fee

2 |

1

Bushwick

820 Wyckoff Avenue

$2,495 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

338 East 14th Street

$2,829 No Fee

1 |

1

East Village

244 E. Houston Street

$2,699 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,400 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,400 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,500 No Fee

Studio |

1

East Village

156 East 2nd Street

$3,000 No Fee

1 |

1

East Village

526 East 11th Street

$2,650 No Fee

1 |

1

East Village

103 East Second Street

$2,775 No Fee

1 |

1

East Village

114 East 7th Street

$2,695 No Fee

Studio |

1

East Village

414 East 11th Street

$2,500 No Fee

Studio |

1

East Village

640 East 14th Street

$2,695 No Fee

1 |

1

East Village

536 East 14th Street

$2,395 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

226 West 111st Street

$2,800 No Fee

2 |

1

South Harlem

115 West 117th Street

$2,500 No Fee

Studio |

1.5

South Harlem

268 West 120th Street

$2,513 No Fee

Studio |

1

South Harlem

2216 Frederick Douglass Boulevard

$2,417 No Fee

Studio |

1

South Harlem

444 Manhattan Avenue

$2,786 No Fee

Studio |

1

South Harlem

2074 F Douglas Boulevard

$2,631 No Fee

1 |

1

South Harlem

215 West 116th Street

$2,756 No Fee

2 |

1

South Harlem

312 Manhattan Avenue

$2,900 No Fee

1 |

1

South Harlem

243 West 115th Street

$3,000 No Fee

2 |

1

South Harlem

117 West 116th Street

$2,750 No Fee

2 |

1

South Harlem

63 East 115th Street

$2,300 No Fee

Studio |

1

South Harlem

312 West 114th Street

$3,000 No Fee

2 |

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

Hell’s Kitchen

554 West 50th Street

$2,276 No Fee

1 |

1

Central Harlem

252 West 149th Street

$2,225 No Fee

2 |

1

Upper East Side

166 East 82nd Street

$2,800 No Fee

1 |

1

Yorkville

401 East 89th Street

$2,475 No Fee

1 |

1

East Village

338 East 14th Street

$2,829 No Fee

1 |

1

South Harlem

115 West 117th Street

$2,500 No Fee

Studio |

1.5

Hell’s Kitchen

537 West 49th Street

$2,300 No Fee

1 |

1

Yorkville

306 East 83rd Street

$2,200 No Fee

1 |

1

Upper West Side

148 West 80th Street

$2,500 No Fee

1 |

1

East Harlem

334 East 105th Street

$2,500 No Fee

2 |

1

East Harlem

340 East 105th Street

$2,500 No Fee

2 |

1

Fort George

480 West 187th Street

$1,850 No Fee

1 |

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.