What is required from a guarantor?
Most NYC landlords require guarantors to live in the tri-state area (NY, NJ & CT), however many landlords will accept guarantors living in other states within the US. Very few landlords accept guarantors outside the US. If the guarantor is located outside the US, now is a good time to prepare a different plan.
A guarantor must provide the same documentation as tenants even when applying as guarantor. Guarantors will be asked to fill out an application and submit the following documents.
- Last year’s tax returns (1099 & W2)
- Letter from employer
- Two most recent pay stubs
- Two most recent bank statements
- Government issued photo ID
If a guarantor is not traditionally employed (salary position) and pay stubs are unavailable, they will need to provide a letter from a CPA.
What can a guarantor do to help?
The number one thing a guarantor can do it get paperwork in order fast! The NYC rental market moves incredibly fast. An experienced renter will know that it’s important to apply the same day they view an apartment. Delays in paperwork and deposits can increase the likeliness of losing the apartment to a competing application. Preparing paperwork at the start of the search, rather than after the ideal apartment has been located can make a huge difference.
What about credit score?
Credit score and credit history carry a lot of weight when it comes to qualifying for an apartment. Which such a huge pool of potential renters and lots of competition, landlords are becoming increasingly picky. Tip to the wise: Know your credit score.
Most landlords are willing to accept a 700+ credit score without question (providing the applicant earns sufficient income.) Credit scores under 680 will raise flags. Some landlords will allow extra security deposit or prepaid rent to fill the gap if credit is less than ideal. Other landlords will deny an application all together.
I don’t qualify as a guarantor. What can I do?
Many international renters are faced with one option: Paying rent in full. Even with paid in full leases, some landlords will ask for extra security deposit. (after the lease is up, they’re back at square one)
Finding a qualified guarantor is the quickest and easiest way.
If a guarantor is out of the questions and paying in full isn’t feasible, there’s one option remaining. Tenants can choose to purchase a guarantor. One of the largest lease guarantee companies, Insurent, serves as a purchasable guarantor. Typically costing a renter 80-120% of one month’s rent, Insurent is accepted by certain landlords. You can search Insurent.com for a list of cooperating landlords or ask a knowledgeable broker to point you in the direction of Insurent friendly options.