No Nonsense Landlord states that a co-signer does not help with risks based on the personal behavior of a tenant separated from the financial risk. For example, a co-signer will not help with problems such as noise complaints, unnecessary behavior or shutdown of public services. You should, however, check your tenant carefully. A co-signer could help you protect your rental income while being more flexible with your rental criteria. For example, university students or younger tenants may not have had enough time to build their credit history. There may be other circumstances, such as medical bills or unemployment, that make an otherwise good tenant risky on paper. This guide explains what a co-signer is when someone can consider a co-signer when assessing an applicant, the pros and cons of a co-signer in a lease agreement, and how to verify tenants and their co-signers. Some landlords would prefer to accept a higher bond than add a co-signer to the lease. However, according to Zillow, there may be public or local housing laws that limit the amount you`ve set. For example, you may not be allowed to charge more than two months of rent on deposit.
If the deposit is not enough to compensate for your losses in case of non-payment or damage, a co-signer may be the best option. According to Nolo, a co-signer is a person who is destined to pay rent 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 rented property. If you decide to accept a co-signer, make sure that you also conduct a thorough review of that person`s tenant. This is one of the best ways to ensure that your investment is protected. TransUnion SmartMove allows you to verify potential tenants and co-signers in minutes without having to keep their personal data. SmartMove provides credit information for tenants, a criminal background check for tenants, and a national eviction report so you have a more complete picture of your context. With reliable information from TransUnion, you can feel safer in your decision to accept a tenant with a co-signer.
You Check Credit reminds the landlord that a co-signer is responsible for their own housing costs as well as perhaps those of the tenant. You must be able to determine whether the co-signer has the resources to meet all of these financial obligations.. . .