Co-Signers and Guarantors
Landlords’ requirements in the New York City metropolitan are very difficult for many renters to meet, particularly college and professional school graduates entering the workforce. Landlords
typically require that an applicant's annual income be 40 to 50 times the monthly
rent, and that the applicant has good credit. For applicants whose income or credit
does not meet these financial tests, a landlord may require significant additional
security or a guarantor or co-signer on the lease. Normally, a guarantor or co-signer
is the mother or father of the applicant.
A landlord may require the guarantor or co-signer to reside in the local metropolitan
area, and have an annual income of 80 to 100 times the monthly rent. For example, a
landlord may require the annual income of the guarantor/co-signer to approximate $240,000
to $300,000, if the tenant is seeking to rent an apartment with a monthly rent of $3,000.
In addition, the landlord may require the guarantor or co-signer to submit extensive
due-diligence documentation to the landlord, such as 2 to 3 years of tax returns, net
worth statements from their accountants, bank and brokerage statements.
Finally, the landlord will require the guarantor or co-signer to have a credit report showing
no delinquencies, defaults, judgments or bankruptcies.
All of this takes considerable time and effort for the parent to compile for the landlord.
In many cases, the time taken causes your son or daughter to lose the chosen apartment.
The Insurent® Lease Guaranty can offer a simple solution.
Assuming your son or daughter passes the Insurent® Lease Guaranty qualification
process, he or she will pay a fee representing a small percentage of the
annual rent. Rather than acting as a co-signer or guarantor, the parent now has the
option to utilize the Insurent® Program and pay the Insurent® fee for their son or
daughter rather than subjecting themselves to the burdensome, time-consuming and
invasive process required of co-signers by landlords.