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 NYC rental.
Once you’ve found a place worthy of renting, you must now convince a landlord that you are rent-worthy. There are a bunch of ways to flunk this test, such as:
- Your perfectly respectable annual salary does not equal at least 40-50 times the monthly rent (say, at least $120,000/year for a $3,000 one-bedroom)
- You’re a foreign employee or international student relocating to the U.S. and you have 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 retiree and do not work
Some landlords will accept a large up front security deposit (three-12 months) to overlook your unworthiness. 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 75-85 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—accepted in around 4,000 NYC buildings representing over 420,000 rental units (and more in New Jersey, Chicago, Boston, and Washington D.C.)—will guarantee your lease for an average of between 65 and 85 percent of a month's rent if you have US 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/year—not $120,000—for that $3,000 one-bedroom)
- You earn less than 27.5x 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 less stringent than most NYC landlords, and they accept overseas parents as signatories.)
- You have a lot of liquid assets (in the bank or stock market) 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: