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

205 Himrod Street

$2,300 No Fee

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1

Bushwick

1122 Willoughby Avenue

$2,900 No Fee

2 |

1

Flatbush

948 New York Avenue

$2,999 No Fee

2 |

1

Bedford-Stuyvesant

785 Dekalb Avenue

$3,000 No Fee

1 |

1

Williamsburg

314 Bedford Avenue

$2,800 No Fee

2 |

1

Greenwood

233 34th Street

$2,700 No Fee

Studio |

1

Fort Hamilton

368 94th Street

$3,000 No Fee

3 |

1

Gravesend

235 Quentin Road

$2,195 No Fee

1 |

1

Bushwick

1801 Broadway

$2,600 No Fee

1 |

1

Bushwick

1801 Broadway

$2,400 No Fee

Studio |

1

Flatbush

868 New York Avenue

$2,900 No Fee

3 |

1

East Flatbush

1630 Brooklyn Avenue

$2,250 No Fee

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 StreetEasy Article continues below

East Village

69 First Avenue

$2,300 No Fee

Studio |

1

East Village

11 Avenue D

$2,875 No Fee

2 |

1

East Village

510 East 13th Street

$2,712 No Fee

1 |

1

East Village

624 E 11th Street

$2,699 No Fee

Studio |

1

East Village

624 E 11th Street

$2,699 No Fee

Studio |

1

East Village

512 East 12th Street

$2,525 No Fee

1 |

1

East Village

345 East 9th Street

$2,100 No Fee

Studio |

1

East Village

536 East 14th Street

$2,395 No Fee

Studio |

0.5

East Village

414 East 11th Street

$2,500 No Fee

Studio |

1

East Village

231 East 4th Street

$2,995 No Fee

Studio |

1

East Village

272 East 3rd Street

$2,600 No Fee

1 |

1

East Village

103 East Second Street

$2,975 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

73 East 115th Street

$2,083 No Fee

Studio |

1

South Harlem

121 West 116th Street

$2,698 No Fee

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1

South Harlem

444 Manhattan Avenue

$2,786 No Fee

Studio |

1

South Harlem

251 West 117th Street

$2,995 No Fee

Studio |

1

South Harlem

143 West 117th Street

$2,700 No Fee

1 |

1

South Harlem

6 East 116th Street

$2,595 No Fee

1 |

1

South Harlem

305 West 111st Street

$2,909 No Fee

1 |

1

South Harlem

243 West 115th Street

$3,000 No Fee

3 |

1

South Harlem

5 East 115th Street

$2,295 No Fee

2 |

1

South Harlem

28 West 125th Street

$1,995 No Fee

Studio |

1

South Harlem

365 West 120th Street

$2,200 No Fee

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1

South Harlem

309 West 121st Street

$2,999 No Fee

2 |

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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

East Village

11 Avenue D

$2,875 No Fee

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1

Yorkville

233 East 89th Street

$2,695 No Fee

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1

East Village

510 East 13th Street

$2,712 No Fee

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1

Central Harlem

304 West 151st Street

$2,425 No Fee

2 |

1

Central Harlem

2750 Frederick Douglass Boulevard

$2,756 No Fee

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1

Fort George

570 West 182nd Street

$2,319 No Fee

1 |

1

Central Harlem

168 West 136th Street

$2,799 No Fee

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1

West Village

634 Hudson Street

$2,495 No Fee

Studio |

1

South Harlem

73 East 115th Street

$2,083 No Fee

Studio |

1

South Harlem

121 West 116th Street

$2,698 No Fee

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1

Yorkville

1640 York Avenue

$2,267 No Fee

Studio |

1

Little Italy

375 Broome Street

$2,800 No Fee

2 |

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.