The Landlord Doctor Forum

No I would not relax this policy. Accepting co-signers is an excellent way to rent to tenants who otherwise would not qualify. The least risky co-signer scenario is one where the prospects have little if any credit history. College students often find themselves in this situation.

Most landlords do charge the co-signer a fee for screening him/her. I might waive this fee depending on my rental unit and the local market. Be consistent with this policy to avoid Fair Housing issues.

If the prospects you are considering do not have the income to qualify, have they explained how they intend to pay the rent? Is the co-signer going to pay a portion of the rent?

Oten the co-signer lives in another town or state, and you may never meet them. It is very important to screen a co-signer as you would a tenant, require a copy of his/her driver's license, and have a separate "co-signer agreement". This agreement should be notarized if you can not meet the co-signer personally.

Good luck and let us know how it goes.

Thought I'd send along a follow-up. Yes, we have rented to this young couple. As you suggested, one of them has no credit history at all and this is his first rental. The other has enough income to cover rent, but just barely. However, they seem like an earnest, intelligent couple and seem excited and eager to maintain the apartment. We do have co-signers for both them, and security deposit for both of them. So, we'll cross our fingers and hope. Thanks for response.

I am glad it worked out for you. Now make sure the rent is paid on time every month. Allowing tenants to go late paying is a slippery slope that often ends with a huge debt upon move out.

Oh, gosh. Don't I know that! BTW, I have another rental where one of the tenants has moved out. He notified me ahead of time and has been working closely with us to get his roommate squared away. But it's not going as easy as it should - probably because I haven't stayed on top of it like I should have. Roommate is now running slightly behind in rent - has not signed the new lease - and was supposed to return a rental application for a prospective new roommate. So, I'm wondering how do all of you handle the situation where one of the two signers on the lease gives notice?

You need a room mate release form. The form releases the person leaving from the terms of the lease and any liability. You, the person leaving, and the one staying all need to sign it and each should have a copy. If I were the guy leaving I would want an original that I would keep in safe place.