At the moment, I am applying to rent/sublease an apartment in a co-op building. The owner of the apartment has chosen to proceed with me and now I am putting together my application in the hopes that the co-op board will approve me. I will be using a guarantor for this process as I do not make 40x the monthly rent (however, I have very good credit). I know that my guarantor will need to provide... [more]
At the moment, I am applying to rent/sublease an apartment in a co-op building. The owner of the apartment has chosen to proceed with me and now I am putting together my application in the hopes that the co-op board will approve me. I will be using a guarantor for this process as I do not make 40x the monthly rent (however, I have very good credit). I know that my guarantor will need to provide all of the required financials (W2, bank account statements, credit report, pay stubs, employer letter, etc.) but do they also have to submit the non-financial parts (personal letters of reference, for example)? Similarly, do I need to submit my financial information as well or could that work against me since I do not make very much money relatively speaking? Additionally, if my parents are my guarantor, do they need to each submit things like pay stubs and credit reports or can just one parent do this (for example, my father makes more money and has better credit than my mother)? Annd finally (sorry for all the questions!), what are co-op boards looking for in terms of reference letters and whom from (landlords vs. bosses vs. friends)? Thanks again!
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Response by RobGeils
over 13 years ago
Posts: 1
Member since: Mar 2009
Hi: Every buiding is different, if you are not using an agent, have the owner contact the managing agent and ask if rental guarantors need to submit references and a full set of application documentation. If you are using an agent shame on them, they should help you with this, or if owner has an agent they should handle this. As far as parent guarantors, if you need both parents income to reach the 40x, then yes, both need stubs, etc. If they file joint tax returns its a good idea otherwise numbers won't add up. Good luck, let me know if you need help.
Rob Geils
646-296-5215
VP Associate Broker
Corcoran Real Estate Greoup
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Response by krichellety
over 13 years ago
Posts: 6
Member since: Jan 2010
Thanks! Yeah, it's just through the owner--no agent. So we should ask the managing agent, not the board? I just heard back from him, and he suggested only having the guarantor submit financials. I'm just nervous that if the board wants my info too, they'll reject the application outright instead of ask for more information. One other thing--the owner has us obtaining the credit report. I thought that is the owner's responsibility to get it presumably so that we don't alter it or something, but that we pay for it? Is that common? Thanks again for your help!
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Response by renterjoey
over 13 years ago
Posts: 351
Member since: Oct 2011
not only will the owner want your credit report but the managing agent will likely be be requiring this from you and your guarantor as well.
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Response by sma10022
over 13 years ago
Posts: 72
Member since: May 2010
The coop where I am a Board member, would not be likely to approve your application. Even with a financial guarantor, we prefer subtenants that possess similiar financial maturity (income and reserves) to those of the other shareholders. The only difference is that this person has decided to rent vs buy for their own reasons, not because they do not have the financial reserves and income.
The criteria to approve a buyer vs a renter have to be very similiar as both will be living under the same roof and living wall to wall.
I suggest to friends in this situation that they consider a rental building as that is their primary business.
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Response by krichellety
over 13 years ago
Posts: 6
Member since: Jan 2010
Thanks, everyone! sma10022--I'm not too worried about that aspect since the owner said that he has successfully subleased to tenants in the past who used guarantors on their applications. Someone pointed this out in another thread, but the owner still responsible for paying his monthly maintenance fees. The rent I pay would be to him and not to the building, as I understand it.
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Hi: Every buiding is different, if you are not using an agent, have the owner contact the managing agent and ask if rental guarantors need to submit references and a full set of application documentation. If you are using an agent shame on them, they should help you with this, or if owner has an agent they should handle this. As far as parent guarantors, if you need both parents income to reach the 40x, then yes, both need stubs, etc. If they file joint tax returns its a good idea otherwise numbers won't add up. Good luck, let me know if you need help.
Rob Geils
646-296-5215
VP Associate Broker
Corcoran Real Estate Greoup
Thanks! Yeah, it's just through the owner--no agent. So we should ask the managing agent, not the board? I just heard back from him, and he suggested only having the guarantor submit financials. I'm just nervous that if the board wants my info too, they'll reject the application outright instead of ask for more information. One other thing--the owner has us obtaining the credit report. I thought that is the owner's responsibility to get it presumably so that we don't alter it or something, but that we pay for it? Is that common? Thanks again for your help!
not only will the owner want your credit report but the managing agent will likely be be requiring this from you and your guarantor as well.
The coop where I am a Board member, would not be likely to approve your application. Even with a financial guarantor, we prefer subtenants that possess similiar financial maturity (income and reserves) to those of the other shareholders. The only difference is that this person has decided to rent vs buy for their own reasons, not because they do not have the financial reserves and income.
The criteria to approve a buyer vs a renter have to be very similiar as both will be living under the same roof and living wall to wall.
I suggest to friends in this situation that they consider a rental building as that is their primary business.
Thanks, everyone! sma10022--I'm not too worried about that aspect since the owner said that he has successfully subleased to tenants in the past who used guarantors on their applications. Someone pointed this out in another thread, but the owner still responsible for paying his monthly maintenance fees. The rent I pay would be to him and not to the building, as I understand it.