What Is a Lease Guarantor? (And Do You Need One?)
The short answer
A lease guarantor co-signs your rental agreement and agrees to pay if you cannot. Here is when you need one, who qualifies, and what they are committing to.
What Is a Lease Guarantor?
A lease guarantor — sometimes called a co-signer — is a third party who agrees to be financially responsible for your rent if you cannot pay. Guarantors are common when applicants have limited credit history, low income, or no rental history.
When Do You Need a Guarantor?
Landlords typically require a guarantor when:
- Your income is below the 2.5x-3x rent threshold
- Your credit score is below 620-650
- You have no rental history (first-time renter, recent graduate, new to the US)
- You have a recent eviction or significant derogatory credit marks
- You are a student renting near a university
Some landlords require guarantors for all student applicants regardless of income.
Who Can Be a Guarantor?
A guarantor is typically:
- A parent or other close family member
- A trusted friend with strong finances
- A professional guarantor service (e.g., Insurent, TheGuarantors)
Landlords usually require the guarantor to meet higher standards than the primary tenant — often 4x-5x the monthly rent in income and a credit score of 700+.
What Does a Guarantor Agree To?
A guarantor signs a legally binding agreement (usually part of the lease or a separate rider) agreeing to:
- Pay rent if the tenant defaults
- Be liable for unpaid rent, late fees, and damages through the end of the lease
- Be contacted directly if the tenant falls behind
This is a significant commitment. The guarantor's credit can be damaged if they have to pay and cannot, or if they are sued.
Guarantor vs. Co-Signer
The terms are often used interchangeably. Technically:
- Co-signer: Signs the lease and may have equal rights as a tenant
- Guarantor: Signs a separate guarantee agreement; typically does not occupy the unit
In practice, many landlords use "guarantor" to mean someone who co-signs but does not live in the unit.
Professional Guarantor Services
If you do not have a family member who qualifies, professional guarantor services can act as your guarantor for a fee:
- Insurent: Accepts most major US cities; fee is typically 70-90% of one month's rent
- TheGuarantors: Similar coverage; also offers deposit replacement
- Leap: Newer entrant, competitive fees
These services are underwritten like insurance. The landlord accepts them in lieu of a personal guarantor.
Alternatives to a Guarantor
- Larger security deposit: Some landlords will accept 2-3 months instead of a guarantor
- Prepaid rent: Offering 3-6 months upfront demonstrates financial reliability
- A verified Settl Verified Passport: Shows income, identity, and financial health — can reduce landlord skepticism before a guarantor is required
What Happens to the Guarantor at Lease End?
The guarantor's liability ends when the lease ends — assuming all obligations are met. For lease renewals, the landlord may require the guarantor to re-sign.
Building your financial profile to avoid needing a guarantor? Start with Settl — verify your income and identity to show landlords you are a low-risk applicant.
Settl Team
Settl Editorial
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