What is a guarantor on a rental application?

Guarantor vs co-signer

A guarantor signs a separate guaranty of the tenant's obligations. They are not a tenant, have no right to occupy, and are usually pursued only after the tenant defaults.

A co-signer signs the lease itself and is a tenant party to it, jointly and severally liable from day one, often with occupancy rights.

Most landlords who say "co-signer" actually want a guarantor. Use the right term in your documents, because the legal effect differs.

When a guarantor makes sense

• Students and recent graduates with limited income history
• Applicants relocating with a signed offer letter but no local income yet
• Applicants slightly below your income threshold who are otherwise strong
• Applicants with no US credit file

What to require of a guarantor

• A higher income multiple than the tenant, commonly 4x–5x rent, since the guarantor is also housing themselves
• The same income documentation you require of applicants
• Government-issued identification
• A signed written guaranty referencing the specific lease, term and amount
• Consider whether you need them in the same state for practical enforceability

Practical cautions

A guaranty is only worth what you can collect. Verify the guarantor's income as carefully as the tenant's. Make sure the guaranty covers renewals or expressly ends at the initial term — an ambiguous term is the most common defect. And collect the guarantor's documents directly from them, not through the applicant.