On the rental side of the market, relying on guarantors is relatively common. Indeed, most apartments rented to students and recent graduates with relatively short work histories also involve a guarantor. To close the deal, the guarantor generally needs to make at least 80 times the monthly rent. This means, if you’re renting a one-bedroom apartment for $3,000 monthly, your guarantor will need to make at least $240,000 annually. If you’re sharing the apartment and only going to pay half the monthly rent, some owners are willing to combine more than one guarantors’ incomes (e.g., two parent guarantors’ making $120,000), but in many cases, owners will only accept a single guarantor.
In addition, if your guarantor lives in another country, you’ll likely run into problems. Many owners won’t accept foreign guarantors, and if they do, they typically ask for much higher income requirements and more money down. Wherever your guarantor lives, however, they will also need to be willing and able to produce all the appropriate paperwork needed to close the deal. This typically means handing over recent pay stubs and any information needed for the owner to run a credit check. Most owners will ask for one to two years of income tax returns.
But what if you don’t have a parent or close relative or friend in the United States who can serve as a guarantor? If this is the case, your best bet is to turn to a third-party guarantor such as Insurent or TheGuarantors. While these companies do charge a fee, generally only accept applicants with good credit histories, and don’t work with all owners, they can help at least some people overcome the credit and income requirements that typically determine who can and cannot rent in New York City.
