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

East New York

327 Milford Street

$2,250 base rent

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Cobble Hill

207 Pacific Street

$2,499 base rent

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Stuyvesant Heights

360 Bainbridge Street

$2,796 base rent

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1

Flatbush

2201 Beverley Road

$2,828 base rent

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East Flatbush

1597 New York Avenue

$2,665 base rent

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1

Bedford-Stuyvesant

554 Gates Avenue

$2,999 base rent

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2

Bedford-Stuyvesant

724 De Kalb Avenue

$2,727 base rent

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1

Flatbush

1620 New York Avenue

$2,899 base rent

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2

Flatbush

80 Clarkson Avenue

$2,600 base rent

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East Flatbush

879 Lenox Road

$2,281 base rent

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Bushwick

378 Weirfield Street

$2,824 base rent

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Flatbush

210 Clarkson Avenue

$2,515 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

345 East 9th Street

$2,500 base rent

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East Village

425 East 12th Street

$2,695 base rent

Studio |

1

East Village

149 First Avenue

$2,850 base rent

Studio |

1

East Village

73 First Avenue

$2,950 base rent

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1

East Village

171 Avenue C

$2,750 base rent

Studio |

1

East Village

336 East 5th Street

$2,950 base rent

Studio |

1

East Village

418 East 14th Street

$3,000 base rent

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1

East Village

330 East 11th Street

$2,850 base rent

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1

East Village

414 East 11th Street

$2,700 base rent

Studio |

1

East Village

84 East 3rd Street

$3,000 base rent

Studio |

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East Village

71 East 2nd Street

$2,750 base rent

Studio |

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East Village

232 East 2nd Street

$2,550 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

263 West 113rd Street

$2,700 base rent

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South Harlem

1516 Park Avenue

$2,995 base rent

Studio |

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South Harlem

207 West 115th Street

$2,911 base rent

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1

South Harlem

2092 Frederick Douglass Boulevard

$2,900 base rent

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1

South Harlem

278 West 117th Street

$2,300 base rent

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1

South Harlem

251 West 117th Street

$2,829 base rent

Studio |

1

South Harlem

1465 Fifth Avenue

$2,514 base rent

Studio |

1

South Harlem

127 West 112nd Street

$2,829 base rent

Studio |

1

South Harlem

60 West 125th Street

$2,688 base rent

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1

South Harlem

2103 Frederick Douglass Boulevard

$2,695 base rent

Studio |

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South Harlem

1833 7th Avenue

$2,594 base rent

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South Harlem

117 West 111st Street

$2,895 base rent

Studio |

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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

Fort George

560 West 192nd Street

$2,550 base rent

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Fort George

75 Ellwood Street

$2,200 base rent

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1

Hell’s Kitchen

313 West 55th Street

$2,400 base rent

Studio |

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Yorkville

321 East 88th Street

$2,550 base rent

Studio |

1

Fort George

124 Fort George Avenue

$2,450 base rent

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1

Fort George

64 Wadsworth Terrace

$2,595 base rent

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Central Harlem

255 West 131st Street

$2,399 base rent

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Hamilton Heights

523 West 141st Street

$2,800 base rent

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East Harlem

2177 Third Avenue

$2,100 base rent

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Fort George

24 Thayer Street

$2,295 base rent

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East Village

345 East 9th Street

$2,500 base rent

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Hudson Heights

728 West 181st Street

$2,252 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.