What Is a Lease Guarantor—and How Can It Help You Find Affordable Housing?

Finding a safe and affordable home is an important step for many individuals and families. Sometimes the process takes a little extra support, especially if your income is low, your credit score needs improvement, or you’ve had rental challenges in the past. Even people with steady jobs or housing vouchers may face extra requirements. In these situations, having a lease guarantor can provide added confidence for landlords and can open the door to more housing opportunities.

A lease guarantor (also called a co-signer) is someone who promises to pay the rent if you cannot. According to the U.S. Consumer Financial Protection Bureau (CFPB), landlords often use credit and rental history reports to decide if they want to rent to someone. When they feel unsure, they may ask for a co-signer to guarantee the payments. You can read more about how landlords use screening reports on the CFPB’s page: Understanding tenant screening reports.

Below is an easy-to-understand guide explaining what a guarantor does, why landlords ask for one, and how it can help people searching for affordable housing—especially those who are struggling to get approved.

1. What Exactly Is a Lease Guarantor?

A lease guarantor is a person—often a parent, friend, or family member—who agrees to cover your rent and any money you owe if you cannot pay. The U.S. Department of Housing and Urban Development (HUD) explains that a co-signer is someone who gives a legal promise that any debt will be repaid. You can find HUD’s definition on their website under Housing Counseling Program Terms.

A guarantor usually does not live with you. They simply sign a separate form or add their name to the lease as financial backup. Landlords see this as extra protection.

In short: You are the renter, and they are the safety net.

2. Why Do Landlords Ask for a Guarantor?

Landlords want to be sure they will receive rent on time each month. To help them decide, they check:

Your income
Your credit report
Your rental history

If these reports show late payments, low income, a short work history, or past problems, landlords may deny the application. The CFPB notes that landlords may legally deny someone if information in the tenant screening report suggests high risk. See more at CFPB: What landlords can consider.

In many cases, landlords choose a middle option—not a denial, but a request for a guarantor.

They do this because a guarantor makes the landlord feel more secure. If the renter cannot pay, the guarantor must pay—no questions asked.

For low-income renters, students, first-time renters, or people with past credit trouble, a guarantor can turn a “no” into a “yes.”

3. How Does a Guarantor Help People Looking for Affordable Housing?

People searching for affordable housing face two major problems:

Not enough options
Many rules and strict requirements

Public housing, Housing Choice Vouchers (Section 8), and other programs exist to help low-income families, seniors, and people with disabilities. You can learn about these programs on HUD’s Affordable Housing page.

But even when renters have help, many private landlords still require:

Minimum income levels
Good credit
Steady employment

This is where a guarantor becomes useful.

3.1 It increases your chances of getting approved

When a guarantor signs the lease, the landlord has someone reliable to turn to if rent is late. This makes your application look stronger.

A guarantor is especially helpful if:

Your income is too low for the landlord’s requirements
You have a housing voucher but still need approval
You have poor or limited credit
You are starting over after a tough period
You are young or renting for the first time

The guarantor helps ease the landlord’s worries.

3.2 It may help you access better housing options

In areas where rent is high or apartments are competitive, having a guarantor can help you qualify for:

Safer neighborhoods
Units closer to work or school
More stable and better-managed properties

For many renters with low incomes, this can be life-changing.

3.3 It can reduce upfront costs

Sometimes landlords choose either:

A very large deposit, or
A guarantor

If you cannot afford a big deposit, a guarantor may be a more realistic option.

4. What Responsibilities Does a Guarantor Take On?

A guarantor’s promise is serious. They agree to pay:

Any unpaid rent
Any damage charges
Any fees or money owed under the lease

This is why HUD-approved housing counselors often advise both renters and guarantors to fully understand the agreement before signing. You can find a counseling agency through the HUD Housing Counselor Search Tool.

If the renter does not pay, the guarantor can:

Be asked to pay the full amount
Face credit damage
Be sent to collections
Even be taken to court

Because of these risks, being a guarantor is a big financial commitment.

5. What Should Renters Do Before Asking Someone to Be a Guarantor?

Before asking anyone to take on this responsibility, renters should think carefully.

Be honest and open

Explain your real situation:

Your income
Your job
Any past credit issues
Your rent budget

If you use Section 8 or another housing program, explain how the voucher works and what share of the rent you pay.

Review the lease together

You don’t need legal training to look at the papers. Simply take time to read:

The monthly rent
Fees
What happens if rent is late
What the guarantor must pay

If anything is unclear, a good first step is contacting a HUD-approved counselor. They are trained to help renters understand leases in simple terms. Find one using the CFPB’s Housing Counselor Locator.

Protect the relationship

Money can hurt friendships and family ties. Make sure everyone is comfortable and clear about expectations.

6. What If You Cannot Find a Guarantor?

Many people do not have someone who can or will co-sign. That is okay—there are still options.

The CFPB explains that renters can sometimes improve their application by:

Providing a larger security deposit (if state law allows)
Showing regular income from benefits
Giving past landlord references
Fixing errors on credit or background reports
Creating a simple budget to show they can afford rent

You can learn about fixing mistakes on your reports at the CFPB Credit Report Dispute Guide.

Sometimes, cleaning up a report or showing proof of stable income is enough for approval—even without a guarantor.

7. Where to Find Free, Trusted Help

If you feel unsure about leasing, co-signing, or finding affordable housing, help is available.

HUD-Approved Housing Counselors

These counselors can explain renter rights, help with budgeting, review your lease, and guide you through housing programs. Find one at HUD Housing Counseling Agencies

Consumer Financial Protection Bureau (CFPB)

The CFPB offers guides on tenant screening, credit reports, and rental decisions: CFPB Resources for Renters

These services are usually free or low cost and can be extremely helpful for first-time renters or people with limited experience.

8. Key Takeaways

A lease guarantor (co-signer) is someone who promises to pay your rent if you cannot.
Landlords ask for guarantors when they feel unsure based on income, credit, or rental history.
A guarantor can help renters—especially low-income renters—get approved for affordable housing.
If you cannot find one, you still have options like fixing credit errors, giving landlord references, or working with a housing counselor.
Trusted help is available through HUD and the CFPB

If you’re currently searching for an affordable place to live, you may also find our guide on newly built affordable housing helpful. Many renters don’t realize that some new construction developments set aside units specifically for low-income households. To learn where to find these opportunities and how to apply, visit our article: How to Find New Construction Affordable Housing.