This guide will explain what a co-signer is if someone could consider a co-signer when evaluating a candidate, the pros and cons of having a co-signer on a lease agreement and checking as the tenants and their co-signers. Add a co-signer contract to your lease agreement to prove that a co-signer has agreed to assume financial responsibility if the tenant is unable to pay. As a tenant with an unstable job or a bad/no credit, a co-signed contract shows your landlord that rents are guaranteed. As a landlord, it ensures that another party pays for rent and other costs if the tenant cannot pay. As a co-signer, she exposes your legal and financial responsibility for rent on behalf of a tenant. Your co-signature contract should contain information such as: Who is the owner; The (s) name (s) of the (s) tenant (s); When the original lease was signed; The location of the rental property The co-signer`s name, driver`s license and social security number; If the co-signer is responsible for extending or modifying the lease; and all other special provisions. Other names for this document: Co-Signer Agreement Form, Lease Co-Signer Agreement Add this addition to the standard lease to legally transfer the terms of the lease to a non-convicted co-signer. Some landlords prefer to accept a higher deposit than include a co-signer in the lease. However, according to Zillow, there may be government or local housing laws that limit the amount you have set. For example, you cannot charge more than two months` rent as a deposit. If the deposit is not enough to recover your losses in case of non-payment or desart, the best option may be to have a co-signer.
RentPrep compares a co-signer to insurance if you are considering a candidate who would otherwise not meet your rental criteria. According to You Check Credit, a co-signer`s contract should make the co-signer co-responsible for all of the tenant`s financial obligations, including surety, tenancy, costs and damages. According to Nolo, a co-signer is a rent person 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. Whether you are a landlord or a tenant, a co-signed contract is useful in rental situations when there is a question about the tenant`s financial situation. With the contract co-signed by a financially secure third party, the tenant and landlord have a guarantee that agrees to assume financial responsibility for the lease if the principal tenant cannot pay for any reason. When it comes to conducting a tenant review on all parties (especially if you have multiple tenants in the lease), you want to be sure to know who you are dealing with at all levels. In this way, you will have a more complete picture of who will live in your home and who will be responsible for the rent.