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

553 Williams Avenue

$2,999 No Fee

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1

Fort Hamilton

9602 Fourth Avenue

$2,200 No Fee

1 |

1

Crown Heights

500 Sterling Place

$2,575 No Fee

Studio |

1

Flatbush

896 New York Avenue

$2,250 No Fee

Studio |

1

Bushwick

54 Noll Street

$2,601 No Fee

Studio |

1

Williamsburg

126 Graham Avenue

$2,750 No Fee

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1

Flatbush

18 East 21st Street

$2,399 No Fee

2 |

1

East Flatbush

720 Lenox Road

$2,100 No Fee

2 |

1

Bushwick

1434 De Kalb Avenue

$2,700 No Fee

1 |

1

Bedford-Stuyvesant

1223 Atlantic Avenue

$2,450 No Fee

1 |

1

Crown Heights

1042 President Street

$2,500 No Fee

Studio |

1

Crown Heights

1499 Bedford Avenue

$2,858 No Fee

Studio |

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

140 East 7th Street

$2,700 No Fee

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1

East Village

322 East Sixth Street

$2,475 No Fee

Studio |

1

East Village

414 East 11th Street

$2,300 No Fee

Studio |

1

East Village

134 First Avenue

$3,000 No Fee

1 |

1

East Village

105 Avenue B

$3,000 No Fee

1 |

1

East Village

215 Avenue A

$2,885 No Fee

1 |

1

East Village

86 East Third Street

$2,950 No Fee

1 |

1

East Village

46 East 1st Street

$2,595 No Fee

Studio |

1

East Village

437 East 12th Street

$2,695 No Fee

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1

East Village

520 East 12th Street

$2,995 No Fee

2 |

1

East Village

526 East 11th Street

$2,600 No Fee

1 |

1

East Village

244 E. Houston Street

$2,599 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

60 West 125th Street

$2,287 No Fee

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1

South Harlem

272 West 117th Street

$2,070 No Fee

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1

South Harlem

2194 Frederic Douglas Boulevard

$2,700 No Fee

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1

South Harlem

1309 5th Avenue

$2,844 No Fee

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1

South Harlem

348 West 118th Street

$2,800 No Fee

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1

South Harlem

113 West 113rd Street

$2,995 No Fee

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1

South Harlem

280 West 117th Street

$2,800 No Fee

2 |

1

South Harlem

92 Saint Nicholas’s Avenue

$2,658 No Fee

2 |

1

South Harlem

60 West 125th Street

$2,809 No Fee

2 |

1

South Harlem

300 West 122nd Street

$2,800 No Fee

Studio |

1

South Harlem

312 West 114th Street

$2,900 No Fee

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1

South Harlem

215 West 116th Street

$2,954 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

Fort George

75 Ellwood Street

$2,100 No Fee

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1

Central Harlem

59 East 126th Street

$2,275 No Fee

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1

Lenox Hill

370 East 69th Street

$2,595 No Fee

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1

Washington Heights

551 West 161st Street

$2,100 No Fee

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1

Hamilton Heights

631 West 152nd Street

$2,600 No Fee

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1

Yorkville

1617 York Avenue

$2,842 No Fee

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1

East Harlem

101 East 116th Street

$2,995 No Fee

2 |

1

Fort George

90 Laurel Hill Terrace

$2,485 No Fee

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1

South Harlem

60 West 125th Street

$2,287 No Fee

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1

East Harlem

340 East 117th Street

$3,000 No Fee

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1

East Harlem

346 East 120th Street

$2,267 No Fee

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1

Lower East Side

104 Forsyth Street

$2,933 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.