What are Lease Guarantors and Cosigners and When Would You Need One? 

If you’re just entering the housing market as a renter, the method for finding an apartment might seem like madness. You’ll have to fit a variety of requirements to be considered by a landlord including income limits, credit score qualifications, and related rules. 

As a young professional, it might be impossible to meet some of these requirements, which starts our discussion about lease guarantors and cosigners. 

What is a Lease Guarantor or Cosigner?

A guarantor is someone that will co-sign a lease for an apartment along with the tenant and guarantees that they will pay the rent if the tenant is unable to pay. A guarantor or cosigner is usually a parent, family member, or older friend who is willing to take on the legal responsibility of paying for the apartment if needed. Guarantor and co-signers are terms that can be used interchangeably when talking about apartment rentals as they both sign on to the lease along with the main tenant and have the same fallback obligation if the tenant can’t pay rent. 

When Do You Need a Lease Guarantor or Cosigner?

If you need to fit financial requirements for a lease and are unable to meet them, at that point you would need to have a lease guarantor or cosigner to rent an apartment. For example, landlords in major cities such as New York City sometimes require you to have an income that is 40x whatever the monthly rent is, which could be difficult in high-rent areas. If your income does not meet that threshold, you can find a guarantor who does meet that requirement. 

Another potential scenario is that a landlord requires certain credit history and a certain credit score that you may not meet because you either have a bad credit score or haven’t had time to build up much credit as a young professional. This is a common issue and you would need a lease guarantor that meets those credit requirements to rent the apartment. 

What Are the Requirements For a Guarantor or Cosigner?

A guarantor or cosigner potentially may have more stringent requirements than the ones imposed on a tenant and may be required to have an income at least 80x to 100x the monthly rent of the apartment they are helping to guarantee. To verify their income, they usually will have to hand over supporting documents such as: 

• Pay stubs and proof of income receipts

• Tax returns

• Bank account statements

• Social Security Number or other identification

Who Can Be a Guarantor or Cosigner?

Usually, family members such as parents or close friends are the best bet when finding a guarantor, but you are able to ask anyone that is willing to shoulder that rent liability and meets the guarantor requirements. If you are not able to find a personal guarantor, there are services and companies that could help with a professional cosigner in exchange for a fee probably equal to another month of rent. These services still may have considerable income and credit requirements as well. 

Overall, Alcove may offer a much better option than finding a lease guarantor, as Alcove's co-living rooms can be up to 50% cheaper than a normal studio on average so you might not have to go through this process. Check out Alcove's listings today.