A cosigner can be the difference between landing the apartment of your dreams and having to move on to that building that gives you the heebie-jeebies. Sure, the thrill of finding an apartment may be gone quickly when the landlord requires someone to cosign your lease. But it could be the one thing that seals the deal.
Cosigned lease agreements
Typically, only the tenant appears on the lease agreement. If you cannot qualify for a lease on your own, the landlord may ask for a cosigner—another adult who agrees to go in on the lease with you. The cosigner won’t be expected to live with you or handle the day-to-day management of the rental and the lease, but they may be held responsible if problems arise.
Finding a cosigner
Any adult can act as a cosigner provided they meet the landlord’s qualifications. Often, tenants ask a family member or trusted friend to cosign for them. However, keep in mind that your cosigner will also have to submit an application and be put through a credit and background check. If your cosigner can’t qualify, you’ll have to find someone else or look for a different rental.
Potential problems
It will be your responsibility to pay upfront fees such as a security deposit or pet deposit, make timely rent payments, and keep your rental clean and undamaged. If you run into problems, the landlord has the legal right to go after either you or your cosigner for money owed. For example, if you lose your job and cannot pay the rent, the landlord may evict you and ask the cosigner to pay the remaining rent on the lease or another fee. If you cause damage to the property while you’re living there, the landlord will deduct the damage from your security deposit first. However, if the cost of repairs exceeds your security deposit, the landlord may ask either you or your cosigner to pay the remainder.
If your time in the rental doesn’t go smoothly, the problems could put a strain on your relationship with the cosigner. Keep this in mind before asking a family member or friend to sign on to the deal.
The upside of having a cosigner
Renting with a cosigner may not be ideal, but it does have benefits. On top of getting the apartment you want, you will have time to build a good relationship with your landlord. If everything goes well, your landlord will likely give you a positive reference and you may not need a cosigner for your next lease.
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