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

Flatbush

880 Rogers Avenue

$2,885 No Fee

2 |

1

Bedford-Stuyvesant

1516 Fulton Street

$2,800 No Fee

1 |

1

Crown Heights

1185 Dean Street

$3,000 No Fee

1 |

1

Stuyvesant Heights

1110 De Kalb Avenue

$2,314 No Fee

Studio |

1

Stuyvesant Heights

733 Madison Street

$2,600 No Fee

1 |

1

Borough Park

905 43rd Street

$1,963 No Fee

2 |

1

Stuyvesant Heights

168 Sumpter Street

$2,895 No Fee

2 |

2

Canarsie

586 Remsen Avenue

$2,900 No Fee

3 |

1

Dyker Heights

6705 Twelfth Avenue

$2,500 No Fee

2 |

1

Park Slope

558 11th Street

$2,450 No Fee

1 |

1

Stuyvesant Heights

84 Chauncey Street

$2,252 No Fee

1 |

1

Prospect Heights

755 Dean Street

$2,295 No Fee

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 StreetEasy Article continues below

East Village

171 Avenue C

$2,350 No Fee

Studio |

1

East Village

338 East 14th Street

$2,829 No Fee

1 |

1

East Village

244 E. Houston Street

$2,699 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,400 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,400 No Fee

Studio |

1

East Village

43 Saint Mark’s Place

$2,500 No Fee

Studio |

1

East Village

156 East 2nd Street

$3,000 No Fee

1 |

1

East Village

526 East 11th Street

$2,595 No Fee

1 |

1

East Village

103 East Second Street

$2,775 No Fee

1 |

1

East Village

114 East 7th Street

$2,695 No Fee

Studio |

1

East Village

414 East 11th Street

$2,500 No Fee

Studio |

1

East Village

640 East 14th Street

$2,695 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

226 West 111st Street

$2,800 No Fee

2 |

1

South Harlem

115 West 117th Street

$2,500 No Fee

Studio |

1.5

South Harlem

2216 Frederick Douglass Boulevard

$2,417 No Fee

Studio |

1

South Harlem

268 West 120th Street

$2,513 No Fee

Studio |

1

South Harlem

444 Manhattan Avenue

$2,786 No Fee

Studio |

1

South Harlem

2074 F Douglas Boulevard

$2,631 No Fee

1 |

1

South Harlem

215 West 116th Street

$2,756 No Fee

2 |

1

South Harlem

312 Manhattan Avenue

$2,900 No Fee

1 |

1

South Harlem

243 West 115th Street

$3,000 No Fee

2 |

1

South Harlem

117 West 116th Street

$2,750 No Fee

2 |

1

South Harlem

63 East 115th Street

$2,300 No Fee

Studio |

1

South Harlem

312 West 114th Street

$3,000 No Fee

2 |

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 StreetEasy Article continues below

Manhattan Valley

209 West 104th Street

$2,450 No Fee

Studio |

1

Hell’s Kitchen

533 West 49th Street

$2,750 No Fee

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1

Sutton Place

160 East 55th Street

$2,500 No Fee

Studio |

1

Washington Heights

920 Saint Nicholas’s Avenue

$1,895 No Fee

Studio |

1

Carnegie Hill

123 East 90th Street

$2,395 No Fee

1 |

1

Hudson Heights

225 Bennett Avenue

$2,200 No Fee

Studio |

1

Hell’s Kitchen

613 Ninth Avenue

$2,995 No Fee

1 |

1

Lenox Hill

435 East 74th Street

$2,295 No Fee

1 |

1

Central Harlem

215 West 145th Street

$2,150 No Fee

1 |

1

Yorkville

1729 First Avenue

$2,475 No Fee

1 |

1

Gramercy Park

305 East 21st Street

$2,300 No Fee

Studio |

1

Hell’s Kitchen

350 West 55th Street

$2,595 No Fee

Studio |

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.