What is a Guarantor?
A guarantor, also called a co-signer, is someone who is willing to guarantee your lease. The guarantor
is responsible for all terms of a lease in its entirety; the guarantee cannot be limited to the interest of a single applicant
in a share situation.
Do I need
If you do not meet the landlords financial or
credit requirements, a guarantor may be your solution. Students or individuals with no income or credit history, or anyone
who does not meet the standard income requirements, will usually need a guarantor. When bad credit is the issue, whether or
not a guarantor is allowed will depend on how bad the credit report is, and on how strict the management company or landlord
may be. Sometimes a combination of guarantor and extra security is needed. If you are using the AptStar Program you will
be advised on how to proceed in a way that will be most effective for you.
Who can be a Guarantor?
does not have to be a relative. Many landlords in New York require a guarantor to live in the Tri-State area: New York, New
Jersey, or Connecticut. Prepare your potential guarantor by speaking with them and advising them of what they will be asked
for. You might have to act quickly, and their cooperation may be critical for your approval. A guarantor needs to fill out
an application form and provide the required documents.
are usually good credit and double the income requirements of an applicant. If an applicant is required to show an annual
income of 40-50 times the monthly rent, a guarantor is required to show an annual income of 80-100 times the monthly rent.
The documents required are similar, although usually all that is needed are proof of income (usually by providing tax returns)
and a credit report. Guarantors also have to sign the lease.
Fees and Commissions can I expect?
execution of the lease you will be expected to pay the following fees with bank or certified checks.
- Payment to landlord of first month's rent and security deposit
- Application fees, including
any credit check fees
- Building fees: these usually include move-in fees and deposits (typically only applicable to
co-ops or condos).