According to Nolo, a co-signer is a rent person if the tenant does not pay. They sign their name in the rental agreement and are fully responsible for the rent if the tenant stops paying the rent. Apartment Guide indicates that a co-signer gives you more options if something goes wrong. Depending on your national laws, you can track the payment of both parties at the same time or go directly to the co-signer. Since late payments can miss both the tenant`s credit and the co-signer, the co-signer has the motivation to quickly remedy the situation. This guide will explain what a co-signer is if someone could consider a co-signer when evaluating a candidate, the pros and cons of having a co-signer on a lease agreement and checking as the tenants and their co-signers. Add this addition to the standard lease to legally transfer the terms of the lease to a non-convict co-signer. Add a co-signer contract to your lease agreement to prove that a co-signer has agreed to assume financial responsibility if the tenant is unable to pay. As a tenant with an unstable job or a bad/no credit, a co-signed contract shows your landlord that rents are guaranteed.
As a landlord, it ensures that another party pays for rent and other costs if the tenant cannot pay. As a co-signer, she exposes your legal and financial responsibility for rent on behalf of a tenant. Your co-signature contract should contain information such as: Who is the owner; The (s) name (s) of the (s) tenant (s); When the original lease was signed; The location of the rental property The co-signer`s name, driver`s license and social security number; If the co-signer is responsible for extending or modifying the lease; and all other special provisions. Other names for this document: Co-Signer Agreement Form, Lease Co-Signer Agreement No Nonsense Landlord indicates that a co-signer does not help in case of risk based on the personal behavior of a tenant separated from financial risk. For example, a co-signer does not help in case of problems such as noise, inexorable behavior or the closure of utilities. You should continue to check your client carefully. A co-signer could help you protect your rental income while remaining more flexible with your rental criteria. For example, university students or young tenants may not have had enough time to build their credit history. There may be other circumstances, such as medical bills or unemployment, that can make a tenant good on paper risky. As an independent owner, you have the opportunity to make the best decision for your rental property.
If you decide to accept a co-signer, you should be sure to also conduct a thorough tenant review for that person. This is one of the best ways to ensure that your investment is protected. Some owners agree to consider co-signers as long as they pass a background check, while other owners do not allow them at all. As rentPrep says, there are no laws that require the acceptance of a co-signer, it`s up to you to determine what`s most useful for your property.