Renting to a tenant with guarantor

I am renting a high end apartment in NYC. The prospective tenant is a college age student who does not have a job. She is pursuing an art fellowship. Her father is acting as guarantor for her. He lives in California. He had 900K in income in 2017 and 650K in income in 2016. The rule of thumb is a guarantor needs to show 80x the monthly rent. In 2017 he made 92x the rent. In 2016 he only made 67x the rent.

The tenant is showing $250K in cash.

The father is listing $1.1MM in Cash. $3MM in real estate. $1.5MM in business value. He has $1MM in mortgages. His net worth is $4.5MM.

I’ve only see the statements for the cash amounts.

Should I be concerned?

decoart

in General Discussion 6 years and 9 months ago

5

Please log in, in order to post replies!

5 replies

Newest Oldest

angelique.m.west | 6 years and 9 months ago

string(1) "1"
object(WP_User)#4954 (8) {
  ["data"]=>
  object(stdClass)#4943 (12) {
    ["ID"]=>
    string(6) "195789"
    ["user_login"]=>
    string(16) "angelique.m.west"
    ["user_pass"]=>
    string(34) "$P$BKyCNqhmpN//us7xYEZbcaPfVpZcKF0"
    ["user_nicename"]=>
    string(25) "angelique-m-westgmail-com"
    ["user_email"]=>
    string(26) "angelique.m.west@gmail.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2017-08-10 14:37:10"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(15) "Angelique Marie"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(195789)
  ["caps"]=>
  array(1) {
    ["subscriber"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(10) "subscriber"
  }
  ["allcaps"]=>
  array(3) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Avoid. This tenant isn’t worth the trouble. The rental market is pretty robust most times of the year with the exception of these holiday months. Why not just find a standard tenant?

resident2 | 6 years and 9 months ago

string(1) "1"
object(WP_User)#4953 (8) {
  ["data"]=>
  object(stdClass)#4952 (12) {
    ["ID"]=>
    string(6) "181002"
    ["user_login"]=>
    string(9) "resident2"
    ["user_pass"]=>
    string(34) "$P$BYKCrEpDU34.3RJghRPk8/Xp1XpCve/"
    ["user_nicename"]=>
    string(9) "resident2"
    ["user_email"]=>
    string(21) "Jamanda1255@Yahoo.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2017-08-10 14:07:33"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "resident2"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(181002)
  ["caps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

An out of State Guarantor is not worth the paper it is written on. If they cannot come up with a New York State resident there are Insurance companies (Insure Rent is one) is one; that will basically Insure the Guarantee. The tenant / Guarantor pay the insurance. It is expensive & most people if they want the apartment will offer to pay the cash for whole lease up front.
I personally do not like taking the whole years rent up front for many reasons; it often leads to a mental /psycho challenge / entitlement attitude problem from the occupant / guarantor. It also triggers a cash flow/ income tax issue. Tax is due as it is received.
Mid winter is not the best time to look for tenants, but sometimes you are better off loosing a months rent now, to get the right tenant than having 12 months of stress.

crhorsken | 6 years and 9 months ago

string(1) "1"
object(WP_User)#4949 (8) {
  ["data"]=>
  object(stdClass)#4955 (12) {
    ["ID"]=>
    string(6) "196415"
    ["user_login"]=>
    string(9) "crhorsken"
    ["user_pass"]=>
    string(34) "$P$BBngYBh2VeuKdqLv81IBoeuQh/Bk851"
    ["user_nicename"]=>
    string(18) "crhorskengmail-com"
    ["user_email"]=>
    string(19) "crhorsken@gmail.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2018-02-25 05:02:06"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(15) "Charles Horsken"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(196415)
  ["caps"]=>
  array(1) {
    ["subscriber"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(10) "subscriber"
  }
  ["allcaps"]=>
  array(3) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

I doubt the money will be the issue, but since it’s a college age student that may cause more of a headache

crhorsken | 6 years and 9 months ago

string(1) "1"
object(WP_User)#4954 (8) {
  ["data"]=>
  object(stdClass)#4956 (12) {
    ["ID"]=>
    string(6) "196415"
    ["user_login"]=>
    string(9) "crhorsken"
    ["user_pass"]=>
    string(34) "$P$BBngYBh2VeuKdqLv81IBoeuQh/Bk851"
    ["user_nicename"]=>
    string(18) "crhorskengmail-com"
    ["user_email"]=>
    string(19) "crhorsken@gmail.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2018-02-25 05:02:06"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(15) "Charles Horsken"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(196415)
  ["caps"]=>
  array(1) {
    ["subscriber"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(10) "subscriber"
  }
  ["allcaps"]=>
  array(3) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

I doubt the money will be the issue, but since it’s a college age student that may cause more of a headache

kevrob | 6 years and 9 months ago

string(1) "1"
object(WP_User)#4953 (8) {
  ["data"]=>
  object(stdClass)#4957 (12) {
    ["ID"]=>
    string(6) "191903"
    ["user_login"]=>
    string(6) "kevrob"
    ["user_pass"]=>
    string(34) "$P$BZ8EufCpWGVUVZ08/keQNKfoKQqPmH1"
    ["user_nicename"]=>
    string(6) "kevrob"
    ["user_email"]=>
    string(23) "kevrob1984203@gmail.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2024-02-22 17:18:41"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(61) "Your first name Your last name Your first name Your last name"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(191903)
  ["caps"]=>
  array(1) {
    ["subscriber"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(10) "subscriber"
  }
  ["allcaps"]=>
  array(3) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Your problem is not what’s in the bank accounts, it’s that for an out of state guarantor, it’ll be a total pain to ever get ahold of it should you end up in court.