Signing a lease can sometimes require more than just your name and financial commitment. For renters who lack sufficient income, credit history, or meet other leasing requirements, landlords might request a cosigner. Here’s everything you need to know about using a cosigner when renting an apartment.
What is a Cosigner?
A cosigner is a person who agrees to take on financial responsibility for your lease if you are unable to meet your rental obligations. This includes paying rent, covering damages, or fulfilling other terms outlined in the lease agreement.
When is a Cosigner Needed?
You might need a cosigner in the following scenarios:
- Low Credit Score: If your credit history is poor or non-existent, landlords might see you as a financial risk.
- Insufficient Income: Many landlords require that tenants earn 2-3 times the monthly rent. If you fall short, a cosigner might be necessary.
- Lack of Rental History: First-time renters without a track record may need a cosigner to prove reliability.
- Non-U.S. Citizens or Recent Arrivals: Renters without U.S.-based credit or employment history might also face this requirement.
Who Can Be a Cosigner?
Typically, cosigners are trusted individuals such as:
- Parents or other family members.
- Close friends with stable income and a good credit score.
- Employers or other professional contacts (less common).
The cosigner must meet the landlord’s financial and credit criteria, as they are effectively a guarantor.
Pros of Using a Cosigner
- Access to Better Apartments: A cosigner can help you secure a lease for units you might not qualify for independently.
- Time to Build Credit: While renting, you can improve your credit score or income for future leases.
- Increased Trust with the Landlord: Having a cosigner reassures landlords that rent will be paid.
Cons of Using a Cosigner
- Financial Risk for the Cosigner: They are legally obligated to cover unpaid rent or damages.
- Strained Relationships: Disputes can arise if the cosigner feels burdened or unacknowledged.
- Limited Options: Not everyone has someone willing or able to cosign.
Alternatives to a Cosigner
If finding a cosigner is challenging, consider these options:
- Pay a Higher Deposit: Offer additional upfront payment to demonstrate financial security.
- Show Proof of Savings: Landlords may accept evidence of significant savings.
- Rent Guarantor Services: Some companies act as professional cosigners for a fee.
- Sublet or Roommate Agreements: Renting a room under an existing lease might have fewer barriers.
Final Thoughts
Using a cosigner can be a practical solution for renters who need additional support to qualify for a lease. However, it’s important to maintain open communication with your cosigner and uphold your rental responsibilities to avoid financial or relational complications. If possible, work towards improving your financial standing to eliminate the need for a cosigner in future leases.