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.
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Brooklyn Rentals Under $3000 on StreetEasyArticle continues below
Bushwick
1092 Hancock Street
$3,000base rent
2 |
1
Stuyvesant Heights
686 Hancock Street
$2,500base rent
1 |
1
Prospect Lefferts Gardens
1767 Bedford Avenue
$2,700base rent
2 |
1
Kensington
470 Ocean Parkway
$2,450base rent
Studio |
1
Flatbush
1160 Rogers Avenue
$2,299base rent
1 |
1
Stuyvesant Heights
582 Mac Donough Street
$2,500base rent
Studio |
1
Weeksville
1563 Park Place
$2,500base rent
2 |
1
Flatbush
366 Lennox Road
$3,000base rent
1 |
1
Midwood
1532 Ocean Avenue
$1,950base rent
1 |
1
Bushwick
1154 Gates Avenue
$2,800base rent
1 |
1
Flatbush
2527 Cortelyou Road
$2,300base rent
1 |
1
Bay Ridge
1 74th Street
$2,225base rent
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 StreetEasyArticle continues below
East Village
195 East Second Street
$2,995base rent
Studio |
1
East Village
31 East 1st Street
$2,925base rent
Studio |
1
East Village
531 East 13th Street
$2,850base rent
Studio |
1
East Village
105 East 2nd Street
$2,795base rent
Studio |
1
East Village
310 East 6th Street
$2,750base rent
Studio |
1
East Village
425 East 12th Street
$2,895base rent
Studio |
1
East Village
222 First Avenue
$2,675base rent
Studio |
1
East Village
320 East 11th Street
$2,500base rent
1 |
1
East Village
414 East 11th Street
$2,895base rent
Studio |
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 StreetEasyArticle continues below
South Harlem
362 West 118th Street
$2,950base rent
1 |
1
South Harlem
2033 Adam Clayton Powell Boulevard
$2,500base rent
2 |
1
South Harlem
131 West 116th Street
$3,000base rent
2 |
1
South Harlem
2294 Frederick Douglas Boulevard
$2,475base rent
Studio |
1
South Harlem
2294 Frederick Douglass Boulevard
$2,895base rent
1 |
1
South Harlem
259 West 121st Street
$2,300base rent
Studio |
1
South Harlem
1309 5th Avenue
$2,516base rent
Studio |
1
South Harlem
2166 Frederic Douglas Boulevard
$2,300base rent
Studio |
1
South Harlem
104 West 114th Street
$2,550base rent
1 |
1
South Harlem
220 West 122nd Street
$2,200base rent
Studio |
1
South Harlem
18 East 116th Street
$2,800base rent
1 |
1
South Harlem
1465 Fifth Avenue
$2,445base rent
Studio |
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 StreetEasyArticle continues below
Hudson Heights
179 Bennett Avenue
$2,575base rent
1 |
1
Hudson Heights
56 Bennett Avenue
$2,395base rent
1 |
1
Washington Heights
515 West 169th Street
$2,500base rent
1 |
1
Chelsea
239 West 20th Street
$2,750base rent
Studio |
1
Hamilton Heights
536 West 142nd Street
$2,750base rent
2 |
1
Yorkville
226 East 85th Street
$2,995base rent
1 |
1
Upper West Side
103 West 80th Street
$2,600base rent
1 |
1
Hamilton Heights
785 Saint Nicholas Avenue
$3,000base rent
1 |
1
East Harlem
240 East 112th Street
$2,700base rent
1 |
1
Yorkville
217 East 85th Street
$2,750base rent
1 |
1
Upper West Side
316 West 105th Street
$2,800base rent
Studio |
1
Fort George
64 Wadsworth Terrace
$2,400base rent
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.