As most renters know (or are shocked to learn), finding an apartment that’s affordable, livable, and available is only the first chapter in the epic battle for a New York City rental. Once you’ve found a place worthy of renting, you must convince a landlord that you are rent-worthy.
However, your income may be reduced now because of the coronavirus pandemic, or you may flunk the test in other ways, such as:
- Your perfectly respectable annual salary does not equal at least 40-50 times the monthly rent (say, at least $120,000 a year for a $3,000 one-bedroom)
- You’re a foreign employee relocating to the U.S. with no U.S. credit history
- You are an international student or a U.S. student with no income and no U.S. credit history
- You’re self-employed (to a landlord, your income is too unpredictable), or...
- You have a lot of money, but no job (think investor, retiree, trust-fund baby, newly single, etc.)
- You are a full-time student or a retiree and do not work
In the past, some landlords would accept a large, up-front security deposit or pre-paid rent for the entire lease to overlook any issues (that's no longer allowed because of changes to the rent laws). Many will take a guarantor—but the guarantor usually has to live in the tri-state area, be willing to wade through cumbersome paperwork, and earn 75 to 85 times the monthly rent (that works out to about $240,000 for that $3,000 one bedroom).
Or, you can simply hire a guarantor. Insurent, which works with over 7,000 NYC buildings, representing over 725,000 rental units (and more in New Jersey, Massachusetts, Maryland, Virginia, Illinois, Washington D.C., California, and Florida)—will guarantee your lease for 65 to 85 percent of a month's rent if you have U.S. credit and around a month's rent if you are foreign with no U.S. credit.
Here are some scenarios in which Insurent can save the day and get you that apartment:
- You have good (not necessarily perfect) credit and earn at least 27.5 times the monthly rent (that’s $82,500 per year—not $120,000—for that $3,000 one-bedroom)
- You earn less than 27.5 times rent or you’re a student, and you have parents who live outside of tri-state area or even overseas. (Insurent’s requirements for parents are much less stringent than most NYC landlords, and they accept overseas parents as signatories with 50 times the monthly rent in annual income or 80 times the monthly rent in the bank.)
- You have a lot of liquid assets (in the bank or stock market) at a minimum of 50 times the monthly rent but no job.
- You’re moving here from another country to start a job, but you don’t have U.S. credit history
- You’re self-employed
- You have roommates and none of your parents make 80 times the monthly rent or do not wish to guarantee the full lease
- Your parents don't want to guarantee roommates whom they may or may not know or they don't want to divulge all of the financial information required to be a guarantor
- At this stage of your life, hitting up mom and dad as guarantors feels wrong. Plus you don’t want them to know how much you’re spending on an apartment.
Click here to view the buildings and landlords that accept the Insurent Program.
Also from Insurent: