If you have a friend or family member who cannot qualify to rent an apartment by themselves, you may have already been asked to co-sign the lease for them. In today's tough rental market, especially in big cities, finding an affordable apartment can be challenging. An applicant's background, employment, credit and rental history will usually be verified and if one of those factors is insufficient or negative, the question of getting a co-signer may be mentioned. Otherwise, the person that you are helping will probably not be allowed to sign a lease on the apartment they like.
Co-signing The Lease Is Just Like Renting The Apartment Yourself
Although co-signing sounds as if your responsibilities are minimal, the truth is that you can be held liable for any portion of the rent that is not paid. By co-signing a lease, you are also agreeing to all the terms of the lease, so you will be held responsible for any lease violations or damage to the apartment.
Therefore, it is crucial to be sure that the person who will be living in the apartment will be able to pay the rent, on time and in full, for the duration of the lease. In addition, before co-signing you should plan to discuss how the person you are helping would be able to pay their rent if they suddenly lost their job or were unable to work for a period of time. Effective communication throughout the lease term will often help the situation work out better for everyone.
Co-signing The Lease Is Not Always As Easy As You Think
As a co-signer, a great credit score and steady employment may not always be enough to have you automatically approved as a co-signer. Instead, your income often needs to be higher than the person you are helping, since you would be responsible for the rent if it goes unpaid and your own living expenses at a separate residence.
As a result, even if otherwise you would qualify, you may not be approved as a co-signer if your income is only three times the rent, which would not be enough to pay all of the expenses you are responsible for. The requirements that each management or landlord can vary, so there is no set guidelines for qualifying as a landlord.
You Should Determine Whether Or Not You Are Co-signing For Roommates
It will be helpful to determine whether or not the person you are helping will be living alone. If there are roommates, now or in the future, it is a good idea to see about separate leases. That way, you would be co-signing for the person you know and trust, not their roommates. The same information applies if it ever becomes necessary to sublet the apartment.
Co-signing a lease is an ideal way to help a young renter get their first apartment, so it can be a wonderful way to help out someone you trust. As long as the person you are helping is financially responsible and able to abide by the terms of the lease, even if problems occur, it can work out well for everyone.
For more information, contact a company like Advanced Realty.