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
Crown Heights
791 Sterling Place
$2,499base rent
Studio |
1
Gravesend
2269 East 2nd Street
$2,200base rent
2 |
1
Crown Heights
1042 President Street
$2,700base rent
Studio |
1
Prospect Lefferts Gardens
110 Empire Boulevard
$2,600base rent
2 |
1
Flatbush
62 East 21st Street
$2,697base rent
1 |
1
Ditmas Park
618 Marlborough Road
$2,600base rent
2 |
1
Bedford-Stuyvesant
220 Madison Street
$2,800base rent
1 |
1
Weeksville
1930 Pacific Street
$2,800base rent
2 |
1
East Williamsburg
62 Sharon Street
$2,650base rent
Studio |
1
Bushwick
347 Linden Street
$2,995base rent
2 |
1
Flatbush
641 East 28th Street
$2,650base rent
1 |
1
Weeksville
1980 Atlantic Avenue
$2,575base rent
2 |
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
513 East 5th Street
$2,900base rent
Studio |
1
East Village
232 East 2nd Street
$2,850base rent
Studio |
1
East Village
619 East Fifth Street
$2,995base rent
1 |
1
East Village
536 East 14th Street
$2,795base rent
Studio |
1
East Village
237 East 2nd Street
$2,750base rent
Studio |
1
East Village
58 East 1st Street
$2,995base rent
1 |
1
East Village
214 East 10th Street
$2,975base rent
1 |
1
East Village
105 East 2nd Street
$2,695base 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
140 West 123rd Street
$2,895base rent
1 |
1
South Harlem
245 West 115th Street
$2,650base rent
1 |
1
South Harlem
270 Saint Nicholas’s Avenue
$2,100base rent
Studio |
1
South Harlem
211 West 122nd Street
$2,600base rent
Studio |
1
South Harlem
150 West 121st Street
$2,550base rent
1 |
1
South Harlem
201 West 120th Street
$2,600base rent
1 |
1
South Harlem
302 West 114th Street
$2,521base rent
1 |
1
South Harlem
146 West 120th Street
$2,575base rent
1 |
1
South Harlem
117 West 111st Street
$2,795base rent
Studio |
1
South Harlem
1465 Fifth Avenue
$2,742base rent
Studio |
1
South Harlem
53 Saint Nicholas Avenue
$1,950base rent
Studio |
1
South Harlem
1516 Park Avenue
$2,895base 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
Yorkville
1727 Second Avenue
$2,995base rent
1 |
1
Yorkville
334 East 90th Street
$2,246base rent
Studio |
1
Central Harlem
2269 Acp
$2,999base rent
2 |
1
Gramercy Park
356 East 19th Street
$2,695base rent
Studio |
1
Fort George
520 West 190th Street
$2,275base rent
1 |
1
Fort George
520 West 190th Street
$2,395base rent
1 |
1
Hell’s Kitchen
405 West 54th Street
$2,750base rent
Studio |
1
Yorkville
530 East 89th Street
$2,850base rent
Studio |
1
Hell’s Kitchen
330 West 43rd Street
$2,875base rent
1 |
1
Hudson Heights
711 West 190th Street
$2,650base rent
2 |
1
East Village
513 East 5th Street
$2,900base rent
Studio |
1
South Harlem
140 West 123rd Street
$2,895base 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.