Apartment Guide indicates that a co-signer gives you more options if something goes wrong. Depending on your national laws, you can track the payment of both parties at the same time or go directly to the co-signer. Since late payments can miss both the tenant`s credit and the co-signer, the co-signer has the motivation to quickly remedy the situation. 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. As an independent owner, you have the opportunity to make the best decision for your rental property. If you decide to accept a co-signer, you should be sure to also conduct a thorough tenant review for that person. This is one of the best ways to ensure that your investment is protected. Accepting a co-signer can help you fill vacancies when the market is scarce, while ensuring that you are able to appeal if the rent is not paid on time. Instead of simply denying a candidate with a poor or low-income credit score, you can accept it and reduce your risk with a 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. 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.