Apartment Guide indicates that a co-signer offers you more options in case of a problem. Depending on your state laws, you can track the payment of both parties at the same time or go directly to the co-signer. Since late payments can be paid by both the tenant and their co-signer, the co-signer has the motivation to remedy the situation quickly. A relatively new option for homeowners is to purchase insurance against rental defaults. For a few hundred dollars a year (usually 300-450 $US), landlords can sleep at night, because they know that if their tenant is late with the rent, insurance comes in and starts paying it until they go through the evacuation process and sign a lease with a new tenant. Look at Steady if you`re new to the idea of rental default insurance to get a free price offer. I would like to say that in a difficult period of my life, the possibility of securing housing is due to a landlord who admitted a co-signer who kept me both in a job and at university. It was written in the lease, it was for 1 year. The co-signer never had to pay part of my rent, the rent was never too late and after a year, a new lease was signed without a co-signer.
Whenever I can, I talk about it, because it turned my life around. I know not all stories have a happy ending, but mine did. Thanks for the article and comments below. Kaman & Cusimano, LLC Make sure you understand the difference between a co-signer and a guarantor of a lease, if any, in your country. Always use the lease that offers the maximum margin and lowest costs to collect your late rents. Wearing shoulder straps in addition to a belt seems exaggerated until your belt breaks. Using co-signers of leasing is a popular strategy to reduce rent risk, but it`s not the only one. Now that you have set up the co-signer, you have a written agreement that he has signed and you are ready to allow the applicant to move in, what will happen next? I hope your new tenant will pay their rent on time. However, if your tenant is unable to pay rent, damage, cleaning or other related costs, you must contact the co-signer to get payment. If the co-signer is unable to pay these fees, they are considered late and this information can be communicated to information offices. Since they assume financial responsibilities, it is not lightly to act as a co-signatory. Despite their frequent use, rental agreements are not a substitute for thorough screening of tenants.
Since a co-signer or guarantor is subject to the same obligations as the tenant, he must be subject to the same verification procedure. . . .