What Is A Cosigner On A Rental Agreement

A co-signer is someone who agrees to sign a lease with you. By signing the contract, he agrees to be responsible for all debts you owe to the landlord if you do not pay your rent or if you break the lease in another way. A co-signer is mentioned in the rental agreement with the actual tenant, although he does not physically live in the property. Accepting a co-signer can help you fill vacancies when the market is scarce, while ensuring that you are able to appeal if the rent is not paid on time. Instead of simply denying a candidate with a poor or low-income credit score, you can accept it and reduce your risk with a co-signer. You Check Credit reminds landlords that a co-signer is responsible for their own housing costs and possibly the tenant`s. They must be able to determine whether the co-signer has the means to meet all of these financial commitments. Since you have to treat them as a tenant if the serttheist occurs, you should check a co-signer as carefully as the candidate. Becoming a co-signer is a big responsibility, so make sure you make an informed decision about whether you are willing to co-sign your friend`s rental contract. With TransUnion SmartMove, you can check potential tenants and co-signers in minutes without having to store their personal data. SmartMove offers a rental credit report, a rental background review and a national eviction report so you have a more complete picture of their context.

With reliable information from TransUnion, you may feel safer in your decision to accept a client with a co-signer. No Nonsense Landlord indicates that a co-signer does not help in case of risk based on the personal behaviour of a tenant separated from the 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. You are your training partner tells you nothing about your financial responsibility. Remember that your relationship with the tenant must be able to withstand all the low and down and from this agreement. If you don`t think you know this person well enough to remain your friend if your lease is wrong, it`s probably not a good idea to sign up with them. Make sure you know your financial habits before signing on the polka dot line. Do you know their spending trends and, preferably, their credit score. Are they fiscally responsible? Do they pay their bills by the hour? Are they employed and can they cut a job? As they are comfortable asking you to become their co-signer, you should feel the same feeling when you have to see their bill statements to check after late fees and credit history.