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

Clinton Hill

104 Washington Avenue

$2,500 No Fee

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1

Bedford-Stuyvesant

140A Lexington Avenue

$2,700 No Fee

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1

Clinton Hill

104 Washington Avenue

$2,300 No Fee

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1

Bushwick

1054 Bushwick Avenue

$2,900 No Fee

2 |

1

East Flatbush

35 East 52nd Street

$2,495 No Fee

2 |

1

Flatbush

2709 Clarendon Road

$1,999 No Fee

2 |

1

Ditmas Park

777 Coney Island Avenue

$2,900 No Fee

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1

Kensington

135 Ocean Parkway

$2,500 No Fee

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1

East Flatbush

1630 Brooklyn Avenue

$2,635 No Fee

2 |

1

Bushwick

1054 Bushwick Avenue

$2,900 No Fee

2 |

1

Kensington

242 Newkirk Avenue

$2,850 No Fee

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1

Kensington

581 Ocean Parkway

$2,900 No Fee

2 |

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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

317 East 3rd Street

$2,800 No Fee

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1

East Village

235 East 12th Street

$2,906 No Fee

Studio |

1

East Village

516 East 6th Street

$2,950 No Fee

Studio |

1

East Village

514 East 11th Street

$2,750 No Fee

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1

East Village

73 First Avenue

$2,500 No Fee

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1

East Village

119 Avenue A

$3,000 No Fee

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1

East Village

208 East 6th Street

$2,703 No Fee

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1

East Village

432 East Ninth Street

$2,650 No Fee

Studio |

1

East Village

516 East 12th Street

$2,980 No Fee

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1

East Village

414 East 11th Street

$2,300 No Fee

Studio |

1

East Village

319 East 5th Street

$2,700 No Fee

Studio |

1

East Village

344 East 9th Street

$2,995 No Fee

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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

247 West 116th Street

$2,750 No Fee

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1

South Harlem

16 West 119th Street

$1,900 No Fee

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1

South Harlem

207 West 115th Street

$2,688 No Fee

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1

South Harlem

1465 Fifth Avenue

$2,822 No Fee

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1

South Harlem

243 West 115th Street

$3,000 No Fee

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1

South Harlem

53 Saint Nicholas’ Avenue

$2,295 No Fee

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1

South Harlem

279 West 117th Street

$2,489 No Fee

Studio |

1

South Harlem

80 Saint Nicholas Avenue

$2,600 No Fee

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1

South Harlem

1405 Fifth Avenue

$2,767 No Fee

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1

South Harlem

200 West 113rd Street

$2,295 No Fee

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1

South Harlem

302 West 114th Street

$2,700 No Fee

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South Harlem

3 West 122nd Street

$3,000 No Fee

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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

317 East 3rd Street

$2,800 No Fee

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1

East Harlem

434 East 115th Street

$1,859 No Fee

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1

Carnegie Hill

163 East 92nd Street

$2,750 No Fee

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1

Gramercy Park

132 East 17th Street

$2,550 No Fee

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Yorkville

328 East 93rd Street

$2,850 No Fee

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Midtown

57 West 58th Street

$2,480 No Fee

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1

Lower East Side

95 Orchard Street

$2,595 No Fee

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Murray Hill

535 Third Avenue

$2,495 No Fee

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Yorkville

214 East 85th Street

$2,650 No Fee

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Upper West Side

203 West 85th Street

$2,990 No Fee

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Central Harlem

137 West 137th Street

$2,300 No Fee

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West Village

496 Hudson Street

$2,800 No Fee

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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.