Guarantor

A guarantor is a person or company that promises to pay a tenant's rent if the tenant fails to. The guarantor signs a guaranty attached to the lease, does not live in the unit, and becomes liable only when the tenant defaults.

Landlords ask for a guarantor when an applicant falls short of the income requirement. In New York City, where tenants need a yearly income of 40 times the monthly rent, the usual standard for a guarantor is 80 times. On a $2,500 apartment that is a $200,000 income.

Portland, Oregon limits this by ordinance: a landlord there cannot require a friend or family guarantor to earn more than 3 times the rent. Paid guarantor services also exist and charge the tenant a fee to stand in. The 40x rent calculator shows both figures.