Should you co-sign a lease?

If a potential renter has a low income, zero rental history or bad credit, the landlord might require them to have a co-signer on the apartment lease. As a co-signer, you don’t have to live in the apartment but your name will be on the lease and you’ll be legally obligated to follow the terms of the lease.

What happens when you co sign an apartment lease?

When you co-sign, you assume the financial responsibilities of renting that apartment. If the tenant cannot or does not pay the rent — and you’re the apartment lease co-signer – then the responsibility falls to you to pay it.

Can a parent sign the lease on an apartment?

You may be able to have a parent co-sign your lease agreement to get the keys to the apartment. By doing this, you may also be able to build a rental history and credit score that will make it easier the next time you want to rent.

When do you need a co-signer to rent an apartment?

Sometimes, a landlord might require a co-signer in order to lease the apartment to you. This is usually the case if you have low income, poor or no rental history, or bad credit. For any of these situations, having a co-signer will give the landlord a lot more peace of mind about letting you rent the apartment.

When to ask parents to co-sign for an apartment?

Be honest with yourself about your ability to afford the unit before you ask your parents to co-sign. If you default on the agreement, you risk hurting your parents’ credit rating and placing them in an unfortunate situation. Your relationship with your parents may become strained because of your inability to pay your bills.

How to have parents co-sign for an apartment?

Collection entries and judgments adversely affect the co-signer’s credit history, so it’s important that your co-signer know the risk. A judgment may also result in garnishment of the co-signer’s wages or a bank levy. Approach your parents and explain your financial predicament. Ask if they are willing to co-sign for your apartment.

What happens if a co-signer does not pay the rent?

What happens if the rent is not paid. When you co-sign, you assume the financial responsibilities of renting that apartment. If the tenant cannot or does not pay the rent — and you’re the apartment lease co-signer – then the responsibility falls to you to pay it. If you cannot, then you are in default.

Should you co sign a lease?

Does co signing a lease affect credit score?

According to the Experian.com website, cosigning for an apartment lease doesn’t normally affect a cosigner’s credit. Rental payments aren’t normally reported to credit bureaus. Because rental payments aren’t usually listed in a person’s credit report, there’s no affect, good or bad, on a cosigner’s credit history.

Do you have to cosign a lease with your son?

Not every apartment will require you to cosign a lease with your son. Check with your son’s university — some schools have websites or other resources to find off-campus housing. Landlords in college towns may be more willing to rent to students without cosigners.

Do you have to sign a lease if your son is renting a house?

This protects you as a cosigner — you are only on the hook for the rent your son has agreed to pay and the final state of your son’s room. Many landlords require tenants to sign a year-long lease, which means you or your son must cover rent during the summer, even if your son returns to your home.

What happens if both husband and wife sign the lease?

If you’ve both signed the lease, you share some rights along with your financial responsibilities. Even if your relationship falls apart, you have equal rights to live in the house until you amend the lease. In theory, your spouse could move out, then move back in if she’s still a signatory.

Can a landlord require a co-signer to pay rent?

A co-signer on a lease agreement assumes the same legal responsibilities as the tenant who signs the lease and will live in the rented property. If the lessee (tenant) fails to pay the rent, the landlord can require the co-signer to pay, including specified penalties and fees.

Can a couple sign the same lease as a cotenant?

Renting a place together and signing the same lease is the most common way that two people become cotenants. But you and your partner can become cotenants in another way, too. If you have a place and your landlord approves of an additional occupant, your partner can sign your original lease and become a cotenant.

Where does the signing of a lease take place?

The Lease Signing Process. Lease signing can take place in person or be completed online before you move into a new unit. If you sign the lease with your landlord or property manager present, they should go over all the important terms with you. Make sure you ask questions and understand these parts of the lease.

Can you kick out a person who is on the lease agreement?

If your roommate’s name is on the lease, she’s a co-tenant. Whether she moved in when you did or replaced your original roommate, she has as much legal right to the space as you do. Even if she breaks the lease, only the landlord can act against her. The exception is if she’s actually violent or threatening violence toward you.

What happens if you co-sign a mortgage for your child?

By co-signing a mortgage, your adult child moves out. You have a potential investment property. If all goes sideways and your adult child can’t make the mortgage payments, you can rent out the house or sell it — as real estate values rise in most areas of the country, you may gain a profit. Click here for today’s mortgage rates.