Apartment guarantors in NYC: the 80x rule and who qualifies

Most New York City landlords want a guarantor who earns at least 80 times the monthly rent a year, has strong credit and, often, lives in New York, New Jersey or Connecticut. That 80x figure is a market convention, not a law, so each landlord can set its own bar, but it is the number you should plan around.

A guarantor is someone who signs a promise to pay your rent and other lease charges if you don’t. Landlords usually ask for one when you don’t meet their own test for tenants, which in NYC is typically yearly income of 40 times the monthly rent (see the 40x rent rule). Students, recent graduates, people new to the US, freelancers and retirees are the applicants most often asked.

How much does a guarantor need to earn?

Multiply the monthly rent by 80. Landlords explain the higher bar this way: the guarantor has to be able to cover their own housing and yours. Some landlords use a lower or higher multiple, so the 90x column below shows how fast the bar rises. Liquid assets sometimes count instead of salary, but how much the landlord will accept varies, so ask.

If your guarantor falls short at 80x, find the highest rent they cover by dividing their yearly income by 80. A guarantor earning $200,000 covers rents up to $2,500 a month. The guarantor income calculator runs those numbers at different multiples.

Who can be a guarantor?

Usually a parent, other relative or close friend. There is no legal rule about who it must be. What the landlord cares about is whether it can collect from that person if you stop paying. In practice that means:

• Income of about 80x the rent, shown with tax returns and pay stubs. Some landlords state the 80x test in assets instead, so ask which they use.
• Good credit. Guarantors go through the same credit review as tenants.
• A US address, often in the tri-state area. Brokers say many landlords prefer guarantors in New York, New Jersey or Connecticut because it is easier to sue them if things end up in court. Some large landlords accept guarantors in other states with extra paperwork. Few accept guarantors who live abroad, which is why many international renters use an institutional guarantor.

Documents a guarantor is usually asked for

A guarantor submits roughly the same package you do (see the rental application documents checklist). Expect requests for:

• A signed guaranty agreement
• Photo ID
• The most recent one or two years of federal tax returns, or W-2s or 1099s
• Recent pay stubs or an employment letter stating salary
• Recent bank and investment statements
• Permission to run a credit check

Sending more than asked, such as both tax returns and an employer letter, can speed approval. New York caps credit and background check fees at the actual cost or $20, whichever is less, and the fee must be waived if the applicant provides a check done within the past 30 days. The landlord must also give a copy of the report and the screening company’s receipt.

What a guarantor is agreeing to

A guarantor is on the hook for the rent if you stop paying, and often for other lease charges such as damage or legal fees. The exact promise is whatever the guaranty says, so the guarantor should read it, not just the lease. Points to check:

• Amount. Is the guaranty for the full lease or capped at a number of months?
• Renewals. Does it carry over automatically to renewal leases and higher rents, or end with this lease?
• Trigger. When can the landlord demand payment from the guarantor?
• Roommates. If several people sign the lease, does the guarantor cover only you or the whole apartment’s rent?

Guarantor vs co-signer

People in NYC often use the words interchangeably, but they are different. A co-signer is added to the lease as a tenant, is fully liable from day one and has the right to live in the apartment. A guarantor usually isn’t named as a tenant, can’t move in, and steps in only when the tenant doesn’t pay. When exactly the landlord can turn to the guarantor depends on the guaranty’s wording. Check which role the paperwork actually gives the person signing.

What a landlord can’t demand

New York and NYC law limit how far a landlord can go when you don’t have a guarantor or your guarantor falls short:

• No extra security. Deposits and advance payments are capped at one month’s rent. The state housing agency says an owner can’t ask the tenant, a guarantor or any third party for more. Offering two months’ security in place of a guarantor isn’t a lawful option for the landlord to accept.
• No extra fees to apply. Apart from the $20 screening cap, landlords can’t charge application processing fees or other charges before or at the start of the tenancy.
• No guarantor demand because of immigration status or national origin. The NYC Commission on Human Rights says information about status can’t be used to impose new rental terms, such as asking for a co-signer.

If you can’t find a guarantor

1. 1

   Add income

   Ask whether a roommate’s income counts together with yours toward 40x. Many landlords add up all tenants.
2. 2

   Look at lower rent

   Your own 40x limit is your yearly income divided by 40. Check it with the rent affordability calculator.
3. 3

   Show assets

   Some landlords accept savings or investments instead of salary. Ask what multiple they use.
4. 4

   Use an institutional guarantor

   A company acts as your guarantor for a one-time fee that providers publish at roughly 40% to 110% of one month’s rent. The building has to accept that provider.
5. 5

   Try smaller landlords

   Owners of small buildings sometimes decide case by case and may weigh a steady job history more than a formula.

Check your own number first with the rent affordability calculator, then see whether a guarantor would close the gap with the guarantor income calculator. If you’re new to the US, read renting in NYC without US credit history.