A co-signer could help you protect your rental income while remaining more flexible with your rental criteria. For example, university students or young tenants may not have had enough time to build their credit history. There may be other circumstances, such as medical bills or unemployment, that can make a tenant good on paper risky. 3) Let the tenant execute an agreement to you that if they are late and you are forced to pay as part of the guarantee, you can collect by the tenant not only what they owe under the rental contract, but also your own legal fees or other fees to enforce your rights. If you co-sign someone`s lease, it means you agree to financially cover your home if you can`t do it yourself. If they delay their monthly rent or can`t pay the damages, it means you have to do it for them. If you don`t pay, then this can be reported in your credit history and can affect your credit score. Keep in mind that by reallocating the rental documents, you will be responsible for the apartment as if it were yours, which means that if payments fail, you could even be brought to court. With TransUnion SmartMove, you can check potential tenants and co-signers in minutes without having to store their personal data. SmartMove offers a rental credit report, a rental background review and a national eviction report so you have a more complete picture of their context. With reliable information from TransUnion, you may feel safer in your decision to accept a client with a co-signer. You are your training partner tells you nothing about your financial responsibility. Remember that your relationship with the tenant must be able to withstand all the low and down and from this agreement.
If you don`t think you know this person well enough to remain your friend if your lease is wrong, it`s probably not a good idea to sign up with them. Make sure you know your financial habits before signing on the polka dot line. Do you know their spending trends and, preferably, their credit score. Are they fiscally responsible? Do they pay their bills by the hour? Are they employed and can they cut a job? As they are comfortable asking you to become their co-signer, you should feel the same feeling when you have to see their bill statements to check after late fees and credit history.