What is a Guarantor for an Apartment?
A Guarantor is somebody who guarantees to pay rental fees if the tenant can no longer do so. They sign the lease along with the tenant and are legally-bound to pay rent if the tenant cannot.
Unlike a co-signer, a guarantor can’t claim the asset they’re promising to pay for. This means they cannot suddenly move into the apartment in the event that the original tenant can no longer pay rent.
Many people rely on guarantors to be able to secure a place to live. It is likely that most people will need a guarantor at some point in their lives, usually when they’re young adults moving out for the first time.
Common Scenarios Where a Guarantor is Needed
- First-time renter
- Bad credit score
- No credit history
- Past bankruptcy
- Eviction on rental history
- Questionable relationship with previous landlord
- Employment history isn’t consistent
- Proof of income isn’t up to par (depending on the region, landlords usually don’t want tenants spending more than 33-40% of their income on monthly rent).
Who Can be a Guarantor?
Many people, especially young adults moving out for the first time, will utilize their parents as guarantors. You can also ask other family members, or close friends. Just bear in mind how that might affect the relationship you have with that person. You also want to make them feel reassured that they will not actually need to take over your rent payment. There are also guarantor services. You will pay additional fees for that, usually anywhere from 5-15% of the annual rent. Be sure to weigh all options carefully before making a decision.
What Does a Guarantor Need?
A guarantor usually needs good credit, financial stability, and some savings. They will need to sign additional paperwork in the apartment application process. They need to provide proof of income, along with several other requirements.
What If I Don’t Want a Guarantor?
Property managers or landlords have the option of being as flexible as they want when it comes to guarantors. Maybe, instead of a guarantor, you can front 3 months rent off the bat, or offer a larger security deposit up front. Either way, just show them that you’re willing to do whatever it takes to make good on your rent payment. Also consider that you can be your own guarantor by providing some other type of asset as collateral on the loans.
Though there is quite a bit of paperwork involved in applying for your dream apartment, finding the right movers is easy. Metropolis Moving has gained the reputation of being one of New York City’s most courteous, careful, and friendly professional moving services. Get a moving quote today and you’ll be on your way to living the life you envision for yourself in your new apartment.