EVERYTHING THAT YOU NEED TO KNOW ABOUT USING OR BECOMING A GUARANTOR
By Kim Williams of Sovereign Associates
The option of having a Guarantor has opened doors for numerous individuals to secure housing, granting access to those who might not otherwise qualify. However, the role of a Guarantor in the apartment application process needs to be understood.
When an individual's income or credit falls short of an apartment's requirements, some landlords offer the possibility of applying with a guarantor. In most cases, the criteria for becoming a Guarantor are an annual income that exceeds 80 times the monthly rent and a credit score ranging from 680 to 700 or above. Eligibility is open to U.S. citizens or green card holders with a valid Social Security number and a positive credit history. While these prerequisites form the core, it's advisable to inquire about additional conditions that can differ between landlords. Some property owners insist the Guarantor be a close family member or a parent. In contrast, others are more lenient regarding the relationship. Certain landlords may have geographical preferences, requiring the Guarantor to reside within the same state or region, while others might exclude Guarantors from specific States.
When requesting that someone be your Guarantor, transparently communicate the prerequisites to them before initiating the application process. It's also prudent to encourage your potential Guarantor to review a standard guarantor form to ensure they are comfortable with their commitment and its implications; any broker can provide one. A precautionary measure like this is invaluable in avoiding the unfortunate scenario of progressing through the apartment selection and lease signing only to discover that your chosen Guarantor is reluctant to proceed. Regrettably, I have recently encountered clients who lost an apartment due to this unforeseen circumstance.
So, what does becoming a guarantor entail? While the agreement's specifics can vary between landlords, the fundamental principle remains consistent. When you consent to be a guarantor, you assume responsibility for the entire apartment, not just the individual who sought your support. This point can complicate matters, especially when multiple roommates share the apartment. Some guarantors may intend to guarantee only a specific applicant on the lease. However, legally, agreeing to be a guarantor entails ensuring the entirety of the apartment, irrespective of the number of occupants. To formalize this commitment, the Guarantor or guarantors must be willing to comprehend and acknowledge this obligation in the presence of a notary.
By understanding the role of a guarantor, applicants can facilitate a smoother apartment application process, empowering all parties to make informed decisions.
