If a landlord has a void in their rental property, he or she will check all potential tenants to make sure they place the best possible candidate in their property. A potential tenant usually has to complete a rent application that includes information such as: Before asking someone to be a co-signer for a lease, make sure they understand what they need to tax. In essence, the co-signer must be able to pay all rents, fees or fines related to property damage, if required by the lessor. 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. 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. When it comes to your first apartment to rent, rent management the first and last month or a deposit (depending on the province), concerns about damage, finding the appropriate tenant and even financial concerns surrounding evictions can be a lot to take care of. But owning property doesn`t have to be that complicated, especially if your property is backed by a guarantor. You can offer the signing of a separate commitment agreement to pay off all debts liability due to the co-signer. If, for some reason, they have to pay for one of your debts, you will be responsible for repaying them twice the amount they have paid off.
Anyone who signs a lease agreement must provide verifiable income and references and agree to a credit and background audit. A co-signer is an unnecessary protection, unless you can prove that he is financially responsible and has the funds to cover the rent if a tenant cannot do so. No Nonsense Landlord indicates that a co-signer does not help in case of risk based on the personal behaviour of a tenant separated from the financial risk. For example, a co-signer does not help in case of problems such as noise, inexorable behavior or the closure of utilities. You should continue to check your client carefully. Sometimes referred to as a guarantor, a co-signer signs the lease with the tenant and agrees to pay the rent if, for whatever reason, the tenant himself is unable to do so. Co-signers are not expected to reside in the unit or trade directly with management, but they will be financially responsible for unpaid rent, damages or fines that a tenant does not pay. 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.