If a parent is going to act as a guarantor for their child who is renting an apartment in NYC, What kind of documents should the parents provide and are there forms to sign?
Thank you for your inquiry. You are asking a very good question.
Let’s take the last part first. Yes, you will be signing, as guarantor, the lease itself, in a separate section referred to as the Guarantee of Lease. There are a number of different standard leases commonly used by NYC landlords, but they all contain a similar guarantee section. On some, it is a separate page of the lease, on others, it is a final paragraph or two after the tenant and landlord signatures.
As the guarantor, you will be asked to provide proof of income and the landlord will want to run a credit report on you. Proof of income can be a YTD (Year To Date) pay stub from your employer or copies of your last year’s tax return. You will be asked to fill out a detailed application form that will also ask you to list any additional assets you may have. Don’t withhold information here, as your goal is to show the landlord that you are not living paycheck-to-paycheck yourself, but rather, that you have a comfortable amount of assets to assure your ability to pay the rent if your child doesn’t. So be sure to list your home, if you own it and have equity in it, any brokerage accounts you may have, any savings accounts, and any trust or other instruments that show ownership of valuable, liquid assets.
Please take a look at our renting guide, The Essential Guide for Smart Renters for more information about guarantors.