Fremont, CA · Member since 2015 · 47 posts · 6 votes
I'm renting a property for $1600. A couple wants to rent but one of them has income of $19k while the other is attending college full time to get Physical therapy certification so no income. They have 10k savings. Mother is willing to be a co-signer to meet the income criteria.
What are the risks of renting to the couple with a co-signer?
What documents does the co-signer need to sign?
Who is responsible if rent is not paid?
Any differences in eviction procedures to be followed with a co-signer? I'm in California.
Anything else I need to be careful about?
Thank you
John
Investor · Los Angeles, CA · Member since 2019 · 132 posts · 91 votes
5y
I agree with @Peter Tverdov move forward and look for other tenants. But if you do decide to allow cosigner to vouch for tenants draft an airtight lease agreement outlining the responsibilities of everyone involved.
Hey John - did you ever find a solution? Did you rent to the couple? Going through my own version of this now, and after I saw your post, thought "YES!" then no one replied. :)
Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
5y
Co-signer signs the lease as well as the tenants. Co-signer also signs a co-signer's addendum that reinforces their responsibility, legal action to be taken will be against them, eviction, credit reporting etc, etc.
Co-signer gets fully screened. Income 3.5x rent or more. Debt to income ratio low enough to handle paying full rent.
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
5y
If these are college students I can understand but if these people are working for a living and can't qualify based on income that should be a no. What does it say about a young adult who makes below the poverty line and yet Mom and Dad will pay to have them out of the house? IMO keep looking.
Investor · Los Angeles, CA · Member since 2019 · 132 posts · 91 votes
5y
I agree with @Peter Tverdov move forward and look for other tenants. But if you do decide to allow cosigner to vouch for tenants draft an airtight lease agreement outlining the responsibilities of everyone involved.