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What a guarantor is responsible for
It depends on the document, but a typical rental guarantee makes the guarantor responsible for:
- Unpaid rent for the lease term (and often renewals)
- Damage beyond normal wear and tear
- Fees and charges allowed by the lease (late fees, utilities billed through the landlord)
- Legal costs if the landlord sues, where the lease or state law allows
Some guarantees are unlimited; others cap liability at a dollar amount or number of months. If you’re being asked to guarantee a lease, read it before signing and ask for limits.
When landlords ask for one
- Income below the landlord’s requirement (commonly 2.5–3× rent)
- Limited credit history (students, young adults, recent immigrants)
- Low credit scores or collections
- No rental history or a past eviction
- Irregular income (self-employment, gig work, commissions)
Landlords must apply these criteria consistently. If you think you were asked for a guarantor because of a protected characteristic—race, national origin, familial status, disability—or, where protected, your source of income, contact a fair housing organization.
What guarantors typically need to show
- Income of about 4–5× the monthly rent (higher-cost markets may require more)
- Good credit
- Employment and income documents (pay stubs, tax returns)
- Sometimes residence in the same state (some landlords don’t accept out-of-state guarantors)
A checklist for the person guaranteeing
Before signing, the guarantor should:
- Read the full lease and the guarantee
- Ask for a cap on liability (for example, 12 months’ rent or a fixed dollar amount)
- Limit the guarantee to the current lease term, not automatic renewals
- Ask to be notified if rent is late
- Understand whether they’re guaranteeing only one roommate’s share or the entire rent (on joint leases, often the entire rent)
- Keep a signed copy
Institutional guarantor companies
Several companies act as professional guarantors. You pay a fee; the company promises the landlord it will cover defaults up to a limit, then seeks repayment from you.
Pros: no need for a family member; often accepted by large property managers. Cons: nonrefundable fees; you still owe any amount they pay; not all landlords accept them; coverage limits vary.
Compare the fee, coverage amount, whether it renews annually, and what happens if you move early.
Alternatives to a guarantor
| Alternative | How it helps | Watch out for |
|---|---|---|
| Larger security deposit | Reduces landlord risk | Many states cap deposits; see deposit laws |
| Prepaid rent | Shows ability to pay | Some states limit prepaid rent; get written receipts and terms |
| Proof of savings | Bank statements showing several months of rent | Don’t send full account numbers until you’ve verified the landlord |
| Letter from employer | Confirms stable income or a new job offer | — |
| Rental assistance guarantees | Some programs give landlords risk-mitigation funds or guarantees | Available mainly through housing programs and navigators |
| Housing voucher | The agency pays most of the rent | Ask landlords to apply income tests to your share only |
| Smaller landlords | May consider individual circumstances | Verify ownership to avoid scams |
| Roommate with stronger credit | Joint application | You’ll share joint liability |
For voucher holders and assisted renters
If a landlord says you need a guarantor because your income is below 3× the rent, point out that the housing agency pays most of the rent. Ask the landlord to apply its income requirement to your share. Some states and cities require this, and in source-of-income–protected jurisdictions, refusing to do so can be illegal. See source-of-income discrimination.
If the tenant can’t pay
If a guaranteed tenant falls behind:
- The tenant should contact the landlord early and apply for emergency rental assistance.
- The guarantor may receive a demand letter or be named in a lawsuit.
- Both should keep records of payments and communications.
- Guarantors who pay can often seek repayment from the tenant.
Building toward renting without a guarantor
- Pay rent on time and ask your landlord to report payments to credit bureaus (if offered).
- Build credit with a secured card paid in full each month.
- Save an emergency fund equal to at least one month’s rent.
- Ask your current landlord for a reference letter when you move.
Frequently asked questions
Is a co-signer the same as a guarantor?
They’re often used interchangeably, but they can differ. A co-signer may be named on the lease as a tenant with equal responsibility. A guarantor usually signs a separate guarantee and becomes liable only if you don’t pay. Read exactly what the document says.
Can a guarantor be released from the lease?
Usually only if the landlord agrees in writing or the guarantee has a built-in end date. Many guarantees automatically continue through renewals and month-to-month periods unless limited.
Do guarantor companies cost money?
Yes. Institutional guarantors typically charge a one-time fee—often a percentage of one month’s rent or of annual rent, depending on your profile—and the landlord must agree to accept them.
Can a landlord require a guarantor because I receive disability benefits or a voucher?
Requiring a guarantor solely because of a disability or source of income can be illegal under fair housing or source-of-income laws where they apply. Landlords must apply the same criteria to everyone and consider reasonable accommodations.
Does being a guarantor affect the guarantor’s credit?
Usually not unless the tenant defaults and the landlord pursues the guarantor and obtains a judgment or sends the debt to collections. A default can then appear on the guarantor’s credit and screening reports.
Sources and verification
Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.
- Tenant rightsUSAGov
- Review your rental background checkConsumer Financial Protection Bureau
- Co-signing a loan: What you should know (principles also apply to lease guarantees)Federal Trade Commission
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