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

Brooklyn Heights

226 Henry Street

$3,000 No Fee

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Crown Heights

809 Park Place

$3,000 No Fee

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1

Sunset Park

535 45th Street

$2,500 No Fee

2 |

1

Stuyvesant Heights

930 De Kalb Avenue

$2,875 No Fee

2 |

1

Flatbush

178 East 32nd Street

$2,500 No Fee

2 |

1

Midwood

1652 East 14th Street

$2,650 No Fee

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1

Ocean Hill

145 Rockaway Avenue

$2,450 No Fee

2 |

1

Midwood

1277 E 14th Street

$2,773 No Fee

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1

Park Slope

374 Seventh Avenue

$2,600 No Fee

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1

Greenwood

208 18th Street

$2,250 No Fee

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1

Prospect Lefferts Gardens

181 Hawthorne Street

$2,367 No Fee

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1

Park Slope

208 Saint John’s Place

$2,800 No Fee

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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

309 East 9th Street

$2,800 No Fee

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1

East Village

512 East 12th Street

$2,500 No Fee

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1

East Village

414 East 11th Street

$2,500 No Fee

Studio |

1

East Village

531 East 13th Street

$2,695 No Fee

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1

East Village

32 East 7th Street

$2,950 No Fee

2 |

1

East Village

620 East 11th Street

$2,521 No Fee

Studio |

1

East Village

314 East 6th Street

$2,395 No Fee

Studio |

1

East Village

319 East 5th Street

$2,695 No Fee

Studio |

1

East Village

515 East 5th Street

$2,995 No Fee

Studio |

1

East Village

515 East 12th Street

$2,375 No Fee

Studio |

1

East Village

518 East 5th Street

$2,765 No Fee

Studio |

1

East Village

215 Avenue A

$2,675 No Fee

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

2270 Frederick Douglass Boulevard

$2,650 No Fee

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South Harlem

2074 F Douglas Boulevard

$2,850 No Fee

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South Harlem

16 West 119th Street

$1,900 No Fee

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1

South Harlem

1770 Madison Avenue

$2,932 No Fee

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South Harlem

318 West 117th Street

$3,000 No Fee

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1

South Harlem

68 East 120th Street

$2,900 No Fee

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1

South Harlem

230 West 116th Street

$2,600 No Fee

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1

South Harlem

15 West 116th Street

$2,967 No Fee

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1

South Harlem

15 West 116th Street

$2,634 No Fee

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1

South Harlem

217 West 123rd Street

$2,750 No Fee

Studio |

1

South Harlem

274 West 115th Street

$2,500 No Fee

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South Harlem

2010 Fifth Avenue

$3,000 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

Hamilton Heights

620 West 143rd Street

$2,995 No Fee

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Hamilton Heights

620 West 143rd Street

$2,598 No Fee

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1

South Harlem

2270 Frederick Douglass Boulevard

$2,650 No Fee

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1

South Harlem

2074 F Douglas Boulevard

$2,850 No Fee

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1

Lenox Hill

125 East 71st Street

$2,850 No Fee

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1

Washington Heights

715 West 172nd Street

$2,908 No Fee

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Central Harlem

112 West 138th Street

$2,200 No Fee

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East Village

309 East 9th Street

$2,800 No Fee

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Sutton Place

1047 Second Avenue

$2,700 No Fee

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1

Fort George

9 Thayer Street

$2,400 No Fee

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Inwood

5008 Broadway

$3,000 No Fee

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1

East Village

512 East 12th Street

$2,500 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.