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

970 Saint Mark’s Avenue

$2,700 No Fee

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1

Kensington

510 Ocean Parkway

$2,400 No Fee

1 |

1

Greenpoint

87 Commercial Street

$2,947 No Fee

Studio |

1

Prospect Lefferts Gardens

309 Fenimore Street

$2,600 No Fee

2 |

1

Ocean Hill

1884 Broadway

$2,650 No Fee

1 |

1

Bushwick

375 Menahan Street

$2,600 No Fee

1 |

1

Bergen Beach

7257 Bergen Court

$2,500 No Fee

2 |

1.5

Flatbush

1622 New York Avenue

$3,000 No Fee

2 |

2

Bushwick

24 Covert Street

$2,650 No Fee

2 |

1

Bushwick

491 Evergreen Avenue

$2,657 No Fee

2 |

1

Bedford-Stuyvesant

1175 Fulton Street

$2,830 No Fee

1 |

1

Crown Heights

885 Saint John’s Place

$2,500 No Fee

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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

326 East 6th Street

$2,550 No Fee

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1

East Village

425 East 12th Street

$2,795 No Fee

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1

East Village

26 Saint Mark’s Place

$2,500 No Fee

Studio |

1

East Village

129 East 4th Street

$2,900 No Fee

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1

East Village

78 East Third Street

$2,800 No Fee

Studio |

1

East Village

213 East 10th Street

$2,650 No Fee

1 |

1

East Village

300 East 5th Street

$2,700 No Fee

Studio |

1

East Village

139 Second Avenue

$2,900 No Fee

1 |

1

East Village

85 East Third Street

$2,400 No Fee

Studio |

1

East Village

128 Saint Marks Place

$2,675 No Fee

Studio |

1

East Village

518 East 6th Street

$2,800 No Fee

Studio |

1

East Village

150 East Third Street

$2,675 No Fee

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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

2166 Fred Douglas Boulevard

$2,300 No Fee

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1

South Harlem

9 East 118th Street

$2,700 No Fee

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1

South Harlem

127 West 119th Street

$2,400 No Fee

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1

South Harlem

301 West 112th Street

$2,595 No Fee

Studio |

1

South Harlem

200 West 113rd Street

$2,295 No Fee

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1

South Harlem

200 West 113rd Street

$1,845 No Fee

Studio |

1

South Harlem

2 West 120th Street

$2,100 No Fee

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1

South Harlem

108 West 114th Street

$2,150 No Fee

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1

South Harlem

91 West 119th Street

$2,400 No Fee

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1

South Harlem

312 West 114th Street

$2,950 No Fee

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1

South Harlem

117 West 116th Street

$2,750 No Fee

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1

South Harlem

56 West 125th Street

$2,335 No Fee

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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

Fort George

329 Wadsworth Avenue

$1,800 No Fee

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1

Upper West Side

327 West 85th Street

$2,500 No Fee

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1

Central Harlem

150 West 140th Street

$2,000 No Fee

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1

Washington Heights

502 West 167th Street

$2,350 No Fee

2 |

1

Central Harlem

150 West 140th Street

$1,950 No Fee

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1

East Harlem

336 East 112nd Street

$2,822 No Fee

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1

Hamilton Heights

19 Hamilton Terrace

$2,063 No Fee

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1

South Harlem

2166 Fred Douglas Boulevard

$2,300 No Fee

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1

Lenox Hill

346 East 62nd Street

$2,500 No Fee

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1

East Harlem

1992 Third Avenue

$2,500 No Fee

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1

Hudson Yards

362 West 36th Street

$2,748 No Fee

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1

East Village

326 East 6th Street

$2,550 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.