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The Ultimate Guide to Co-Signing With a Guarantor

Published on August 3, 2017 by rae steinbach

There are times when the perfect apartment is just too expensive. Unless you are earning a mighty salary or come across an incredibly affordable NYC apartment, chances are high that you don’t have the income required on the lease. As this is often the case, there’s always a way to win the apartment of your dreams even if you don’t meet all of the lease requirements: Signing with a guarantor.

A guarantor, or better known as co-signer, guarantees that you will meet the requirements of the landlord. By signing, they take legal responsibility of the apartment and its conditions on behalf of the tenant.

Landlords usually prefer guarantors that live near the vicinity of the apartment that they are renting. Regardless, they require the guarantor earn on average, 80 times the monthly rent. Without a guarantor, this rate drops to usually 40 times the monthly rate. However, for a recent graduate or first-time buyer, that salary requirement is still often too high. Thus, a guarantor makes signing feasible.

signing

What to Look for in a Guarantor

If you’re someone who’s looking to co-sign with a guarantor, here are some things to consider before making the deal:

  • Discuss the lease policy and the requirements with the guarantor you’re thinking of co-signing with. Though the guarantor is often a parent or guardian, in some cases it can be a company or someone else that you hire to sign for you.
  • Ask questions. It’s perfectly okay (and even advised) to ask personal questions related to the income or bank statements from the potential guarantor. As a tenant, it’s your job to make sure the guarantor you’re co-signing with has a solid financial repute. They’ll also be required to provide proof of earnings, so screening ahead of time is wise.
  • Have someone you can rely on at any time. Apartments go off the market just as fast as they get on them, so you want to have a guarantor you can rely on the moment you find the perfect place.
  • Once you’ve found the right guarantor, keep to the terms you’ve agreed on and make sure to thank him after the lease has been signed.

Benefits of a Guarantor

Every landlord wants a resident that is respectful, prompt, and more importantly, able to pay each month’s rent. However, it can be difficult to judge the tenant’s behavior and fiscal responsibility. This is especially true if they don’t have the past credentials for it (e.g. they are first-time renters). A guarantor vouches for the tenant. If something goes awry and the resident is at fault, then the responsibility falls upon the co-signer’s shoulders.

For any price range, Short Term Rentals NYC is the apartment search solution for you. Our vast inventory of listings include apartments for every salary range, whether you’re looking to sign with a guarantor or not.

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