Finding the perfect Downtown Austin apartment can be exciting, but it can also come with challenges—especially when it comes to meeting income and credit qualifications. After putting in the effort to find the right place, getting denied during the application process can be frustrating.
At Paseo, we understand that not everyone meets the income requirements for renting an apartment. Whether you’re a student, self-employed, or new to building credit, you may need a guarantor or alternative solution to help secure a lease.
In this article, we’ll explain what a guarantor is, when you might need one, and what your options are if you cannot find someone to act as your guarantor.
What is a guarantor?
A guarantor is someone who co-signs your lease agreement and takes on financial responsibility in the event that you are unable to pay rent. Essentially, they serve as an added layer of security for the landlord, ensuring that rent is covered no matter what.
For example, if you sign a 12-month lease at $2,800 per month, your guarantor is legally responsible for covering the full $33,600 lease commitment, plus any additional costs for damages or fees if you are unable to pay.
Typically, guarantors are parents, relatives, or close family friends, as they need to meet certain income and credit requirements to qualify.
When might a guarantor be needed?
You may be required to have a guarantor if you do not meet the income or credit requirements set by the apartment community. The most common reasons include not earning enough to qualify, having little to no credit history, or having a low credit score.
1. You don’t meet the income requirement.
Most luxury apartments in downtown Austin require tenants to earn at least three times the monthly rent to qualify for a lease. This means if your desired apartment is $2,500 per month, you would need a minimum monthly income of $7,500 to meet this requirement.
If your income falls below this threshold, you can add a guarantor to your lease. However, guarantors must meet an even higher income requirement, typically making four to six times the rent amount to qualify. They will be required to show proof of income, such as pay stubs, tax returns, or bank statements, and will often undergo a credit check.
2. You have little or no credit history.
If you are a student or first-time renter, you may have little to no credit history, which can make it difficult to qualify for an apartment. Landlords often rely on credit scores to determine whether applicants are financially responsible and capable of making consistent payments.
If you don’t have an established credit history, a guarantor can step in to strengthen your application and provide landlords with the financial reassurance they need.
3. You have a low credit score.
While apartments in downtown Austin don’t always list a minimum credit score requirement, most landlords prefer applicants with a credit score of 650 or higher. If your credit score is lower, your application may be denied, or you may be required to pay a larger security deposit or add a guarantor to qualify.
A guarantor with a strong credit score can help improve your chances of approval.
What if I can’t find someone to act as my guarantor?
If you don’t have a family member or friend who can act as a guarantor, you still have options. Some third-party companies specialize in offering guarantor services for renters who don’t meet standard qualifications.
Companies like The Guarantors and Leap assess your financial situation and, if approved, act as your guarantor for a one-time fee or a monthly premium. This is a great alternative for renters who don’t have someone to co-sign but still need financial backing to secure an apartment.
Another potential option is to offer a larger security deposit upfront or prepay a portion of your rent, though not all apartment communities allow this. Be sure to ask leasing offices about alternative qualification options.
If you were to default on your lease, rather than a guarantor being responsible for the missed payments, the insurance policy secured through your third-party guarantor company will cover the missed payment. You would then need to reimburse the insurance company for what was paid on your behalf. In addition to reimbursement of the third-party company, eviction and legal action may occur, so it’s important to understand exactly what is required and what is covered under the policy.
So, what about Paseo?
If you’re considering leasing at Paseo, there are a few key qualifications you’ll need to meet to ensure a smooth approval process.
When submitting your application, you’ll be required to provide a valid government-issued photo ID, which will be used for a credit and background check. If any issues arise during this review, it could impact your approval status, potentially requiring a higher security deposit or a guarantor to move forward.
To qualify, applicants must have a combined verifiable income of at least three times the monthly rent. This helps ensure financial stability and reduces the likelihood of missed rent payments.
If you plan to apply with a guarantor, they will need to meet a higher income threshold—earning at least six times the monthly rent—to be eligible.
Read Next: How Do I Qualify to Rent an Apartment at Paseo?
We hope this article has helped you better understand your options if you don’t meet the standard income or credit requirements.
If you have any questions or need further clarification, reach out to our leasing team to learn more about availability, pricing, and the application process!
James Idunate
James is a leasing professional at Paseo, born and raised in Austin. He’s passionate about building authentic relationships and helping create a community here at Paseo. When he’s not at work, you’ll find him on the golf course, out on the lake or finding new restaurants around Austin. James' go-to Daydreamer Café order is a mocha with oat milk and honey!
July 30, 2025