Most NYC landlords require your annual income to be 40 times the monthly rent. If you're a student, new grad, freelancer, or just don't earn enough yet, you'll need a guarantor. Here's everything you need to know about getting one.
The 40x Rule Explained
What is a Guarantor?
A guarantor is someone who co-signs your lease and agrees to pay your rent if you can't. They're legally responsible for the lease if you default.
Typical guarantor requirements:
- Must earn 80x the monthly rent (double the tenant requirement)
- Must reside in the tri-state area (NY, NJ, CT) — some landlords require NY only
- Good credit score (typically 700+)
- Stable employment
- Must provide same documentation as tenant (tax returns, pay stubs, bank statements)
Option 1: Personal Guarantor
The most common option is a family member (usually a parent) who meets the income requirements.
Pros
- • No additional cost
- • Fastest approval process
- • Most landlords accept
Cons
- • Must earn 80x rent (high bar)
- • Must be in tri-state area
- • Puts relationship at financial risk
What if your guarantor lives out of state? Some landlords won't accept out-of-state guarantors because it's harder to pursue them legally. Ask upfront.
Option 2: Institutional Guarantor Services
If you don't have someone who can guarantee you, companies will do it for a fee.
The Major Players
Insurent
The most established institutional guarantor. Works with most NYC landlords.
TheGuarantors
Newer competitor, often slightly cheaper. Growing acceptance among landlords.
Rhino
Offers security deposit insurance (different product). Some landlords accept as alternative.
Important: Check First
Not all landlords accept institutional guarantors. Ask before applying to avoid wasting time and application fees.
How Institutional Guarantors Work
- Check eligibility online — Enter your income and the rent amount
- Get pre-approved — Usually takes 24-48 hours
- Apply for the apartment — Tell the landlord you'll use an institutional guarantor
- Finalize guarantor — Once approved for the apartment, pay the guarantor fee
- Guarantor co-signs lease — They guarantee your rent for the lease term
Other Options
Pay More Rent Upfront
Some landlords will accept several months' rent upfront (e.g., 3-6 months) instead of a guarantor. This ties up cash but avoids guarantor fees.
Find a Roommate Who Qualifies
If you're renting with roommates, the combined income of all tenants on the lease is considered. A roommate with higher income can help you qualify.
Look for Flexible Landlords
Some smaller landlords or buildings have more flexible requirements. Large management companies tend to be stricter.
Target Buildings with Lower Requirements
Some newer luxury buildings, eager to fill units, may accept 35x or even 30x income. Often no-fee buildings offer more flexibility.
Total Cost Comparison
For a $3,000/month apartment:
For International Renters
International students and workers face extra challenges:
- No US credit history — Many landlords require this
- No US guarantor — Family can't guarantee if they're abroad
- Solution: Institutional guarantors specifically work with international renters
- Alternative: Target international-friendly buildings (many luxury buildings)
- Documents needed: Passport, visa, offer letter, international bank statements
Tips for Approval
- Get pre-approved from an institutional guarantor before apartment hunting
- Have all documents ready — speed matters in NYC
- Be upfront with landlords about using a guarantor
- Apply early in the month when there's less competition
- Consider no-fee buildings — they often have flexible requirements