Are you considering renting a property but have concerns about meeting the landlord’s requirements for income, credit score, or rental history? One solution could be to find a co-signer. A co-signer is an individual who agrees to sign a lease agreement with the primary tenant and accept equal legal responsibility for the lease. They serve as the lease’s guarantor and are held accountable for any rent payments, damages, or other fees if the main tenant fails to fulfill their obligations. In this article, we will discuss the responsibilities and duties of a co-signer compared to a guarantor, whether it is easier to secure a rental property with one, and what is required to complete the rental process.
What is a Co-signer
An individual who consents to sign a lease agreement with the main tenant and accepts equal legal responsibility for the lease is known as a co-signer. When the primary tenant does not satisfy the landlord’s requirements for income, credit score, or rental history, the co-signer is usually needed by the landlord. By agreeing to co-sign the lease, the co-signer consents to be held legally accountable for any rent payments, damages, or other fees if the main tenant is unable to fulfill their end of the bargain. In essence, the co-signer serves as the lease’s guarantor and may be held accountable if the main tenant breaks the terms of the agreement
How do the responsibilities and duties of a guarantor and a co-signer differ?
Guarantor: A guarantor is a person or organization that promises to pay the rent only in the event that the renter is unable to do so. Their yearly income is recommended to be 40–80 times the monthly rent, including liquid assets. They are unable to reside there with the tenant, though. A guarantor is at a moderate danger of being evicted.
Co-Signer: A co-signer is usually someone who agrees to split the rent payment each month with the tenant, such as a parent or roommate. Their yearly income is recommended to be 70–80 times the monthly rent, including liquid assets. They are permitted to reside in the leased home with the tenant.
Is it easier to get an apartment with a co-signer?
The short answer, yes. Moving into a rental property can be made considerably easier if co-signers are permitted. Having a co-signer is particularly beneficial for first-time renters, such as college students, people building their credit, or people with a low credit score or previous eviction due to reasons beyond their control, even though it is not a guarantee.
What is needed?
What actions do they need to perform to finish the process after you’ve chosen someone to help you pay your rent?
The co-signer must submit a rental application, pay the application cost, and have their background and credit checked, according to the property manager’s requirements. In order to prove their salary, they must present at least two documents proving that they have enough money to pay the rent and their own housing costs. Their history of timely bill payment, absence of prior evictions, and possession of a favorable credit report from at least one of the three major credit agencies will also be verified by the property manager.
In conclusion, a co-signer is an individual who agrees to take on equal legal responsibility for a lease agreement with the main tenant. They are typically required by landlords when the primary tenant does not meet certain income, credit, or rental history requirements. A co-signer is held accountable for any rent payments, damages, or other fees if the main tenant fails to fulfill their obligations. The responsibilities and duties of a guarantor and a co-signer differ, with a guarantor only agreeing to pay rent if the tenant is unable to do so, while a co-signer splits the rent payment with the tenant each month.
Having a co-signer can make it easier to secure a rental property, especially for first-time renters or those with credit challenges. To complete the process of having a co-signer, they must undergo a background and credit check, provide proof of income, and demonstrate a history of responsible bill payment, absence of prior evictions, and a favorable credit report from at least one of the major credit bureaus.