Should I allow a prospective tenant to have a co-signer?

Question

My husband and I own our condo and we want to rent it out.  A nice guy came today and looked at our place and was very interested, however he came forth and said he didn't have good credit and his brother would co-sign the lease.  I have a good legal lease I got from the CA Association of Realtors and I know it protects us as the landlords.  However I never thought about whether to accept co-signers or not.  Of course if I were to go through with this, I would make both tenant and co-signer sign the lease...but is this a good idea?  The economy sucks right now and I know people have crappy credit....but then again, I want to protect myself.  Any professional input would be greatly appreciated.

? · Accepted Answer

No, that would be foolish. If one of them loses his job, you will never get your rent and go through the renting process again. If you own a condo, that is probably too nice for this guy. Let him find another  apartment to rent. Condo should be rented to someone in a good financial position.

Anonymous · Answer

Peeshee, co-signers are common on all types of loans and leases.  Renting is no different.  If the tenant doesn't pay, the co-signer is obligated and their credit gets screwed.

Check the credit of the other person - of course.

And check to be sure the actual tenant has a good reason for the poor credit.  That to me is most important.  Bad things happen to good people.

But I would want to be sure as possible that BAD things didn't happen to a BAD person.

Good luck.

godged · Answer

If I were a landlord, I wouldn't take a tenant that needed a co-signor.  Of course you can make them both sign the lease, but if they didn't pay their previous debtors, you are going to be chasing this person and their co-signor every month for rent.  That sucks, I would pass.

TedEx · Answer

You really want to get involved with this??? 
Imagine this dialogue...

you. The rent is due
Tenant, Well, er. ah, I;m kinda short this month, but you know, my brother will make good for it.
You" Where's your brother,?
Tenant:. Well, er, he's in Kansas this week, 
You: Have you talked to him about lending you some money to pay the rent?/
Tenant: I haven't been able to get ahold of him for the last couple weeks, but he said if I need money, I should call him.
You"  You should call him if you need some money, but you can't get ahold of him?
Tenant" Uh, yea, he told me he'd let me know his new phone number.but I guess he's kinda busy.

Like I said, you REALLY want to get involved with this?

Should I allow a prospective tenant to have a co-signer?

4 Answers