Realtors conduct extensive research on behalf of property owners to ensure an applicant will make a good tenant. This is done through an application process that includes checking references, credit, criminal records and proof of employment. If a tenant’s income or credit does meet the owner’s requirements a co-signer may be an option!

What is a Co-Signer?

A co-signer is someone who is co-assuming the financial responsibilities that come with the apartment. However, they do not have to live in the apartment with you.

Who Can Be a Co-Signer and What are the Requirements?

Anyone who is willing to be a co-signer can be one. Parents and close friends are usually the most willing to co-sign on your lease. A co-signer will need to have a good credit score, be able to prove their income, and show that they have the capacity to pay for the unit if needed on top of their own debts and payments.

What to Consider Before Asking Someone to Co-Sign

Consider how having a person as your co-signer will affect your relationship with them. If you didn’t pay your rent and it ever fell on them, it could cause tension. You should also explain exactly what the landlord will need from them, which will likely include personal information, such as a credit report, bank statements, and employment details.

Always weigh the pros and cons with the person before having them co-sign. They should have a clear understanding that they will become responsible for paying the rent if you are unable to. This can affect their credit score, and the landlord can sue both tenant and co-signer in the event rent becomes outstanding.

How to Tell If You’ll Need A Co-Signer

If you have a low credit score, bad debt, or a bankruptcy in your past. If your income is lower than the required rent to income ratio or don’t have sufficient proof of income. A co-signer may also be required if you’re a young adult, such as a recent college graduate without rental history.

How Long Will They Be a Co-Signer?

The co-signer is bound to the agreement for the length of the lease. In many cases, if you haven’t missed any rent payments in that time, the landlord may not require you to have a co-signer when it comes time to renew.