Moving to a new apartment in Chicago? Whether you’re coming from across the country or just down the street, one thing that can throw a wrench in your rental search is the need for a guarantor. But what exactly is a guarantor, and why does your landlord want one? In this guide, I’ll break down when you need a guarantor, the typical requirements in Chicago, and how to ensure that you’ve got all the bases covered.
What is a Guarantor?
Simply put, a guarantor is someone who agrees to take on financial responsibility for your lease if you’re unable to pay your rent. Think of it as an insurance policy for your landlord. In Chicago, landlords will often ask for a guarantor if they perceive any risk in renting to you, whether that’s due to a lack of rental history, a low credit score, or insufficient income. This ensures that the landlord will get paid even if something goes wrong.
It’s a safety net both for the landlord and the tenant. But while it’s a common request, it doesn’t mean every renter needs one. Let’s dive deeper into when a guarantor is required and what it takes to qualify.
When Do You Need a Guarantor in Chicago?
While every landlord is different, there are a few scenarios where you’re more likely to encounter the need for a guarantor. Here are the most common situations where you may be asked for one:
1. Lack of Rental History
Renters who are new to the city or those without a history of renting will often be asked to provide a guarantor. Landlords may be hesitant to rent to someone with no track record of paying rent on time.
2. Low Credit Score
A low credit score is a common reason why landlords request a guarantor. If your score is below 600, you may be asked to secure a guarantor as an added layer of financial security.
3. Insufficient Income
If your monthly income doesn’t meet the usual standard — typically around 3 times the monthly rent — landlords may require a guarantor. For example, if your rent is $1,500 and your monthly income is $3,000, this would fall below the 3x rent rule.
4. Short-Term Lease
For those signing a shorter lease, landlords may ask for a guarantor to mitigate the risk of having a tenant leave before the lease ends. This is especially true for temporary or furnished apartments.
Typical Guarantor Requirements in Chicago
If you find yourself needing a guarantor, it’s important to know the typical requirements that landlords in Chicago will expect from your guarantor. Here’s a rundown of the most common prerequisites:
1. Financial Stability
Your guarantor will need to demonstrate financial stability. In general, landlords require that the guarantor earns at least 4-5 times the rent. For example, if you’re renting an apartment for $2,000 per month, your guarantor should earn at least $8,000-$10,000 per month.
2. Good Credit History
Just like tenants, guarantors need to have a strong credit score. A score of 700 or higher is often the benchmark. Landlords will look for someone who can prove they’re financially responsible.
3. U.S. Resident or Citizen
In Chicago, landlords typically require that the guarantor be a U.S. resident or citizen. While some may accept international guarantors, it’s less common, and the process might be more complicated.
4. Verifiable Income and Employment
Guarantors must provide proof of income and employment. This can include pay stubs, tax returns, or bank statements. The landlord wants to make sure the guarantor can comfortably cover the rent if the tenant can’t.
5. Co-signer Agreement
In addition to meeting financial criteria, the guarantor must sign a legal document agreeing to pay rent in case the tenant is unable to. This document should outline all of the obligations and responsibilities clearly.
How to Find a Guarantor in Chicago
Finding a suitable guarantor can feel like a daunting task. So, who exactly can act as a guarantor? Here are a few potential options:
1. Family Members
Parents or other close family members are the most common guarantors. In Chicago, it’s typical for parents to help out when their child is moving into their first apartment.
2. Friends
If you have a trustworthy friend with the right financial qualifications, they may be willing to step in as your guarantor.
3. Professional Guarantor Services
If you don’t have family or friends who can act as a guarantor, there are professional services that offer to act as a guarantor for a fee. These services will typically charge a one-time fee or a monthly rate for taking on this responsibility. Be sure to do your research to find a reputable company.
What to Do If You Don’t Have a Guarantor?
If you can’t find a guarantor or don’t want to involve someone you know, there are still options available:
1. Increase Your Deposit
Some landlords may be willing to accept a larger security deposit in place of a guarantor. This could mean offering up to two or three months’ rent in advance.
2. Rent with a Roommate
If your credit isn’t stellar but you have a steady income, you might want to consider getting a roommate. This not only splits the rent but can also give you both a leg up in the application process.
3. Find No-Guarantor Apartments
Many landlords in Chicago, especially those in competitive neighborhoods like Lincoln Park or Lakeview, will offer no-guarantor apartments. These units may have higher rent or stricter requirements, but they eliminate the need for a guarantor altogether.
Summary
In Chicago, a guarantor can be a crucial part of your rental application process, especially if you’re new to renting, have a low credit score, or lack sufficient income. The requirements can vary, but typically, a guarantor will need to meet specific financial criteria to provide security to the landlord. If you don’t have a guarantor available, options like increasing your deposit, renting with a roommate, or searching for no-guarantor apartments may help.
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