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Cosigning A Rental Agreement

  • April 09, 2021

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. 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. 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. 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. 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. 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.