Finding a new apartment is one thing, but worrying about being approved for an apartment with a guarantor on your lease is another. If you’re a first-time tenant or someone with unstable employment history, NYC landlords may require you to have a guarantor on your lease.
What Is a Guarantor?What Is a Guarantor?
If you’re preparing to relocate to NYC or move into your first apartment there, you may wonder what a guarantor is and if you even need one. A guarantor is someone who will co-sign your lease and guarantee that they will make your rental payment if you don’t. A guarantor is similar to a co-signer, but unlike a co-signer (usually a roommate or partner), a guarantor only steps in if the renter cannot make payments.
Qualification standards for guarantors can also be strict. While some landlords may accept out-of-state guarantors, some prefer to work with one in the tri-state area. It could be riskier and more difficult for the landlord to take legal action against an out-of-state guarantor. Additionally, landlords typically require that a guarantor has an annual income of at least 90 times the monthly rent.
Do I Need a Guarantor on My NYC Apartment Lease?Do I Need a Guarantor on My NYC Apartment Lease?
To be safe, it’s always a good idea to know ahead of time whether or not you’ll need a guarantor before you apply for an apartment. Some typical reasons why landlords may want you to get a guarantor before they feel comfortable renting include the following:
- Credit: Includes low or no credit score, bankruptcy, or problematic credit history.
- Rental history: Without one, you may have difficulty finding a landlord willing to take the risk without a guarantor.
- Employment history: If you’re a college student or have employment gaps, this may be a potential risk for your landlord.
- Income: Most landlords want you to earn 3x the monthly rent, a rent-to-income ratio of 30% to cover rent and living expenses.
Taking care of all of these details might help you boost your chances of being able to rent an apartment in NYC without a guarantor.
How to Rent an Apartment in NYC Without a GuarantorHow to Rent an Apartment in NYC Without a Guarantor
While most ask their parents or family members, many are unaware they may use a third-party guarantor. However, if you don’t feel comfortable hiring a third party, there are other workarounds to renting an NYC apartment without a guarantor.
Offer to Pay a Higher RentOffer to Pay a Higher Rent
Offering to pay a greater rent as requested is one technique to persuade a landlord to rent you an apartment despite less favorable conditions and higher risk. It is surprisingly common for individuals to engage in bidding wars for a specific apartment, making this a viable alternative for securing an apartment despite the absence of a guarantor.
Consider a SubletConsider a Sublet
It’s also possible to get an apartment in NYC without going through the lengthy application or guarantor process by looking at short-term rentals or sublets. Your name will not appear on the lease, and you will not be required to provide a guarantor — a win-win situation. But, this could potentially prevent you from accumulating a rental history for future apartments.
Look Up Co-Living CompaniesLook Up Co-Living Companies
Co-living companies that provide furnished flats with pre-selected confirmed housemates aren’t as well-known but may have greater flexibility with their requirements. Thoroughly vet any co-living firms and double-check that your name is added to the lease.
Get Rent Guarantee InsuranceGet Rent Guarantee Insurance
Rarely heard of is a new type of insurance called Rent Guarantee that will pay your rent in case you lose your job, though it’s usually paid for by the landlord and added to your rent. However, if you use this type of insurance, you’re forfeiting the right to withhold the rent payment if your landlord fails to make any necessary repairs. Another popular option is called Insurent you can try.
Find a Landlord Willing to Work With YouFind a Landlord Willing to Work With You
Finally, if you can’t find a landlord prepared to cooperate with you, you may want to look elsewhere. While this doesn’t guarantee you’ll receive the apartment of your dreams, you’d be surprised at the hidden gems you’ll discover.
Final ThoughtsFinal Thoughts
Whatever your situation, finding an apartment in New York City may be nerve-wracking, particularly when your landlord asks you to have a guarantor on your lease. Though there are various workarounds, navigating the procedure alone may be challenging. This is where your local rental agent may be your best chance to manage the process and discover an apartment that meets your needs.