What is a guarantor and when do you need one in NYC?

Question

Accepted Answer

A guarantor (also called a co-signer) is a person who agrees to be legally responsible for your rent if you fail to pay. NYC landlords typically require a guarantor when:

Your annual income is less than 40 times the monthly rent
You have little or no credit history in the US
You are a student or recent graduate
You are new to the US and have no domestic credit profile

Who can be a guarantor:

A family member with strong US credit history and income of 80 times the monthly rent
A professional guarantor service (such as Insurent or TheGuarantors) — these charge a fee of approximately 4-10% of annual rent

Tip: If you are an international renter without a US credit history, a professional guarantor service is often the fastest solution.