Wondering what a guarantor is and why you might need one for student housing near ASU? As a student preparing to sign your first (or even second) lease for an apartment in Tempe, you likely have many questions. Two of the most common we hear at Rambler Tempe are, “What is a guarantor?” and “Do I need a guarantor to sign a lease?”
In this article, we’ll answer these questions and provide the guidance you need to confidently navigate the leasing process. Specifically, we’ll cover:
- What a guarantor is and why they’re important
- What responsibilities a guarantor has on your lease
- Why many ASU students need a guarantor
What is a Guarantor?
A guarantor is someone who co-signs your lease and agrees to pay your rent if you can’t. When you sign a lease, it’s a legal agreement to pay rent each month. To determine if you’re eligible to sign, the landlord will typically evaluate your income and credit score to ensure you can be financially responsible for the rent.
Read Next: How to Sign a Lease: A Step-by-Step Guide for ASU Students
Landlords generally require your monthly income to be about three times the rent amount to qualify, which is challenging for most college students. As a result, nearly all students need a guarantor to co-sign. By co-signing, the guarantor agrees to cover any rent you can’t pay, making them partially responsible for the lease. Most students choose a parent or guardian as their guarantor to fulfill this responsibility.
Representative living and kitchen area at Rambler Tempe.
What Will My Guarantor Be Responsible For?
As previously mentioned, a guarantor is responsible for covering any rent the student is unable to pay. They agree to take on the full financial liability for the rent throughout the entire lease term including any damages.
For example, if you sign a 12-month lease at $1,500 per month, your guarantor would be responsible for the total $18,000 plus any additional fees for damages should you fail to pay.
Most student housing properties offer individual leases, meaning each roommate signs a separate lease with their own guarantor. The advantage is that you and your guarantor are only responsible for your bed space and shared common areas, not your roommates’ leases.
Read Next: 5 Reasons to Sign an Individual Lease as an ASU Student
In contrast, traditional apartment complexes often require you and your roommates to sign a joint lease. In this case, all roommates and their guarantor(s) are collectively responsible for the full rent and any damages to the entire apartment.
Why Do Many ASU Students Need a Guarantor? Do I Need a Guarantor?
Given the high income requirements for qualifying alone, most college students need a guarantor to co-sign. It’s essential to understand the role of the guarantor before signing your lease. To verify that your guarantor meets the income requirements, they’ll need to provide documents like bank statements or pay stubs. Additionally, both you and your guarantor may need to provide Social Security numbers so the landlord can conduct a credit check.
We require all residents at Rambler Tempe to guarantee their lease in one of four ways:
- Sign with a guarantor that meets the qualifications below
- Prepay two rent installments, which are applied to the last two months of your lease term
- Utilize the Guarantor Waiver Program (GWP) offered by Leap (full-time students only)
- Utilize the Rent Guaranty Program offered by Leap
For option #1, you will list the name and email of your guarantor during the application process, and your guarantor will receive an email to fill out their portion of the application.
For a guarantor to qualify, they must meet the following qualifications:
- Must earn 3x the monthly installment
- Must not have filed for bankruptcy in the past seven years
- Must have a credit score of 601 or above
- Must have a passing RV Index Score
If you are a full-time student and are not able to provide someone to act as a guarantor on your behalf, or you cannot prepay two installments, you will be enrolled in the Guarantor Waiver Program (GWP) offered by Leap through our leasing team. Leap acts as your guarantor for a monthly fee of $83, which is added to your rent payment. The GWP is only available for full-time students (domestic or international).
If you are not a full-time student and do not have a guarantor or the ability to prepay two installments, you will be enrolled in the Rent Guaranty Program offered by Leap. To enroll, you will fill out an online application with Leap and pay a one-time, non-refundable fee after your application is reviewed. This fee ranges between 55% and 90% of one month’s rent, depending on credit history and financial situation.
Please note: You can’t enroll in GWP within 60 days of your move-in.
Understanding what a guarantor does and why they’re essential can make the leasing process much smoother. If you’re ready to find housing near ASU or have questions about securing a guarantor, contact our leasing team today. We’re happy to help you navigate the process!
