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
950 Hart Street
$2,500No Fee
Studio |
1
Crown Heights
1401 Dean Street
$2,700No Fee
1 |
1
Flatbush
282 East 32nd Street
$2,936No Fee
2 |
1
Carroll Gardens
306 Bond Street
$2,450No Fee
Studio |
1
Stuyvesant Heights
1875 Atlantic Avenue
$2,755No Fee
2 |
1
Midwood
1375 Ocean Avenue
$2,000No Fee
1 |
1
Weeksville
1778 Bergan Street
$2,800No Fee
2 |
2
East Flatbush
1630 Brooklyn Avenue
$2,499No Fee
2 |
1
Flatbush
986 Rogers Avenue
$2,250No Fee
Studio |
1
Weeksville
239 Utica Avenue
$2,299No Fee
1 |
1
Midwood
1215 Avenue M
$2,250No Fee
1 |
1
Bedford-Stuyvesant
101 Jefferson Avenue
$2,627No 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 StreetEasyArticle continues below
East Village
63 East 7th Street
$3,000No Fee
Studio |
1
East Village
226 East 14th Street
$2,895No Fee
Studio |
1
East Village
92 Third Avenue
$2,950No Fee
Studio |
1
East Village
58 East 1st Street
$2,895No Fee
1 |
1
East Village
128 Saint Marks Place
$2,625No Fee
Studio |
1
East Village
21 East 2nd Street
$3,000No Fee
1 |
1
East Village
32 East 7th Street
$2,925No Fee
2 |
1
East Village
319 East 5th Street
$2,695No Fee
Studio |
1
East Village
515 East 5th Street
$2,895No Fee
Studio |
1
East Village
273 East Tenth Street
$3,000No Fee
1 |
1
East Village
153 Avenue A
$2,745No Fee
Studio |
1
East Village
112 East 7th Street
$2,500No Fee
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
16 West 125th Street
$2,599No Fee
1 |
1
South Harlem
230 West 123rd Street
$2,250No Fee
1 |
1
South Harlem
237 West 123rd Street
$2,895No Fee
1 |
1
South Harlem
1309 5th Avenue
$2,775No Fee
Studio |
1
South Harlem
9 Central Park North
$2,600No Fee
2 |
1
South Harlem
1638 Park Avenue
$2,337No Fee
Studio |
1
South Harlem
75 West 118th Street
$2,303No Fee
1 |
1
South Harlem
257 West 116th Street
$2,613No Fee
1 |
1
South Harlem
16 West 121st Street
$2,995No Fee
1 |
1
South Harlem
504 Manhattan Avenue
$2,700No Fee
1 |
1
South Harlem
132 West 117th Street
$2,450No Fee
1 |
1
South Harlem
3 East 115th Street
$2,495No 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 StreetEasyArticle continues below
Central Harlem
252 West 132nd Street
$2,895No Fee
Studio |
1.5
Central Harlem
17 West 125th Street
$2,700No Fee
1 |
1
Central Harlem
48 West 138th Street
$1,900No Fee
Studio |
1
Lenox Hill
509 East 77th Street
$2,800No Fee
1 |
1
Lower East Side
173 Ludlow Street
$2,595No Fee
Studio |
1
Morningside Heights
45 Tiemann Place
$2,750No Fee
1 |
1
Upper West Side
319 West 76th Street
$2,825No Fee
Studio |
1
Sutton Place
1073 First Avenue
$3,000No Fee
1 |
1
Central Harlem
242 West 136th Street
$3,000No Fee
1 |
1
Murray Hill
647 Second Avenue
$2,150No Fee
1 |
1
Manhattan Valley
54 West 106th Street
$2,562No Fee
1 |
1
Hamilton Heights
512 West 151st Street
$2,250No 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.