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

Bushwick

300 Stanhope Street

$2,650 No Fee

1 |

1

Bushwick

1209 Dekalb Avenue

$2,900 No Fee

1 |

1

Boerum Hill

132 Douglass Street

$2,950 No Fee

1 |

1

Bushwick

172 Knickerbocker Avenue

$3,000 No Fee

2 |

2

Bensonhurst

8100 Bay Parkway

$2,500 No Fee

2 |

1

Gravesend

2650 Ocean Parkway

$2,200 No Fee

1 |

1

Bedford-Stuyvesant

1157 Fulton Street

$2,400 No Fee

1 |

1

Crown Heights

1376 Dean Street

$2,900 No Fee

1 |

1

Ocean Hill

10 Sackman Street

$2,400 No Fee

2 |

1

Fort Greene

112 Ft Greene Place

$2,975 No Fee

1 |

1

Greenwood

875 Fourth Avenue

$3,000 No Fee

1 |

1

Fort Hamilton

146 92nd Street

$1,895 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

314 East Sixth Street

$2,350 No Fee

Studio |

1

East Village

112 East 7th Street

$2,550 No Fee

Studio |

1

East Village

514 East 5th Street

$2,665 No Fee

1 |

1

East Village

514 East 5th Street

$2,650 No Fee

Studio |

1

East Village

512 East Fifth Street

$2,630 No Fee

Studio |

1

East Village

217 Avenue A

$2,800 No Fee

Studio |

1

East Village

220 First Avenue

$2,398 No Fee

Studio |

1

East Village

91 East Third Street

$2,700 No Fee

Studio |

1

East Village

316 East Third Street

$2,790 No Fee

Studio |

1

East Village

221 Avenue A

$2,740 No Fee

1 |

3

East Village

425 East 12th Street

$2,250 No Fee

Studio |

1

East Village

72 East 7th Street

$2,700 No Fee

1 |

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

36 West 119th Street

$2,400 No Fee

1 |

1

South Harlem

454 Manhattan Avenue

$2,695 No Fee

Studio |

1

South Harlem

2070 Frederic Douglas Boulevard

$2,835 No Fee

1 |

1

South Harlem

1949 Adam Clayton Powell Boulevard

$2,395 No Fee

1 |

1

South Harlem

243 West 122nd Street

$2,250 No Fee

Studio |

1

South Harlem

243 West 115th Street

$3,000 No Fee

2 |

1

South Harlem

204 Saint Nicholas Avenue

$2,995 No Fee

2 |

1

South Harlem

1405 Fifth Avenue

$2,595 No Fee

1 |

1

South Harlem

119 West 117th Street

$3,000 No Fee

2 |

1

South Harlem

215 West 116th Street

$2,756 No Fee

2 |

1

South Harlem

540 Manhattan Avenue

$2,399 No Fee

1 |

1

South Harlem

207 Central Park North

$2,970 No Fee

1 |

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

Lenox Hill

1420 York Avenue

$2,750 No Fee

1 |

1

East Village

217 Avenue A

$2,800 No Fee

Studio |

1

Lincoln Square

148 West 68th Street

$3,000 No Fee

1 |

1

Sutton Place

160 East 55th Street

$2,800 No Fee

Studio |

1

Hell’s Kitchen

436 West 49th Street

$2,400 No Fee

Studio |

1

Lenox Hill

415 East 73rd Street

$2,933 No Fee

1 |

1

Sutton Place

1073 First Avenue

$2,350 No Fee

Studio |

1

Yorkville

1557 Second Avenue

$2,250 No Fee

Studio |

1

Sutton Place

1073 First Avenue

$2,500 No Fee

Studio |

1

Yorkville

224 East 89th Street

$2,600 No Fee

1 |

1

Yorkville

218 East 85th Street

$2,658 No Fee

1 |

1

Chelsea

251 West 26th Street

$2,827 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.