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

Crown Heights

1004 Union Street

$2,350 No Fee

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1

Bushwick

1154 Gates Avenue

$2,675 No Fee

2 |

1

Bushwick

879 Knickerbocker Avenue

$1,900 No Fee

1 |

1

Williamsburg

56 Stagg Street

$2,500 No Fee

1 |

1

Fort Hamilton

59 Gelston Avenue

$1,850 No Fee

Studio |

1

Fort Hamilton

347 91st Street

$2,500 No Fee

1 |

1.5

Homecrest

2728 Kings Highway

$2,800 No Fee

2 |

2

Fort Hamilton

9710 Third Avenue

$2,400 No Fee

1 |

1

Bushwick

1222 Bushwick Avenue

$2,250 No Fee

Studio |

1

Crown Heights

1120 Saint John’s Place

$2,999 No Fee

1 |

1

Prospect Heights

363 Prospect Place

$2,861 No Fee

Studio |

1

Flatbush

2017 Caton Avenue

$2,100 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

520 East 14th Street

$2,850 No Fee

Studio |

1

East Village

512 East Fifth Street

$2,500 No Fee

Studio |

1

East Village

512 East Fifth Street

$2,650 No Fee

1 |

1

East Village

620 East 11th Street

$2,370 No Fee

Studio |

1

East Village

620 East 11th Street

$3,000 No Fee

2 |

1

East Village

338 East 11th Street

$2,450 No Fee

Studio |

1

East Village

438 East 13th Street

$3,000 No Fee

2 |

1

East Village

102 Saint Mark’s Place

$2,675 No Fee

1 |

1

East Village

128 Saint Mark’s Place

$2,675 No Fee

Studio |

1

East Village

101 Avenue D

$2,800 No Fee

Studio |

1

East Village

45 First Avenue

$2,575 No Fee

Studio |

1

East Village

123 East 7th Street

$2,045 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

136 West 118th Street

$2,500 No Fee

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1

South Harlem

257 West 113rd Street

$2,300 No Fee

Studio |

1

South Harlem

215 West 116th Street

$2,756 No Fee

2 |

1

South Harlem

138 West 112nd Street

$2,950 No Fee

2 |

1

South Harlem

2192 Frederic Douglas Boulevard

$3,000 No Fee

1 |

1

South Harlem

91 West 119th Street

$3,000 No Fee

1 |

1

South Harlem

69 East 110th Street

$2,250 No Fee

2 |

1

South Harlem

312 Manhattan Avenue

$2,425 No Fee

Studio |

1

South Harlem

296 Manhattan Avenue

$2,650 No Fee

Studio |

1

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

5 East 115th Street

$2,250 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

West Harlem

371 West 126th Street

$2,800 No Fee

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1

Washington Heights

470 West 165th Street

$2,700 No Fee

2 |

1

East Village

330 East 11th Street

$2,700 No Fee

1 |

1

Lenox Hill

344 East 65th Street

$2,900 No Fee

1 |

1

East Harlem

222 East 111st Street

$2,950 No Fee

1 |

1

Murray Hill

5 Tudor City Place

$2,950 No Fee

Studio |

1

Upper West Side

47 West 87th Street

$2,175 No Fee

Studio |

1

Yorkville

1553 York Avenue

$2,300 No Fee

Studio |

1

Sutton Place

1073 First Avenue

$2,600 No Fee

1 |

1

Upper West Side

324 West 96th Street

$2,695 No Fee

1 |

1

Turtle Bay

307 East 44th Street

$2,750 No Fee

Studio |

1

East Harlem

401 East 116th Street

$2,500 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.