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. Whether you are a landlord or a tenant, a co-signed contract is useful in rental situations when there is a question about the tenant`s financial situation. With the contract co-signed by a financially secure third party, the tenant and landlord have a guarantee that agrees to assume financial responsibility for the lease if the principal tenant cannot pay for any reason. 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. 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. 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. 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. RentPrep compares a co-signer to insurance if you are considering a candidate who would otherwise not meet your rental criteria. According to You Check Credit, a co-signer`s contract should make the co-signer co-responsible for all of the tenant`s financial obligations, including surety, tenancy, costs and damages. 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.