Renting your very own apartment can be a liberating experience. Perhaps it signifies newfound independence or an exciting, new chapter. Although you may hope to embark on this apartment leasing adventure solo, there’s no shame in— how did that British band put it? — getting by with a little help from your friends.
For a multitude of reasons, you may not qualify for your dream apartment (or even your plan B or C) by yourself. Luckily, cosigners can open doors (literally) for those previously denied residence. So don’t throw in the towel on your apartment renting endeavors just yet! In the words of John and Paul— there will be an answer, let it be.
What is a cosigner?
Cosigners sign the apartment lease with you, taking on the same financial responsibility as a tenant and then some. Simply put, they are extra insurance for your property manager to ensure sufficient payments are received one way or another. If rent is due monthly, either you, your cosigner, or a combination of both, are expected to cover it completely.
Cosigners can exist as a roommate or offer support from a distance. Either way, their name is on the lease; they have a legal right to your space, and a legal obligation to ensure your rent is paid in full. Cosigners also hold a lot of power as they are capable of taking over your lease entirely.
What is the difference between a cosigner and a guarantor?
Both the cosigner and guarantor have skin in the game, and both can join you in court if nobody shells out the rent. Guarantors serve the same purpose as cosigners as they aim to shoulder some of the tenant’s financial burden. They both get their cards swiped if you fall short on payments.
However, cosigners enjoy rights and roomie privileges that guarantors do not have. Guarantors cannot live in the rental, and they are only contacted once you’ve missed a payment and breached your leasing agreement. Ultimately guarantors really get little out of this arrangement apart from helping someone in need of new digs —what saints!
Who should you ask to cosign your apartment?
The primary reason you are in this situation is that although you may very well be top-notch tenant material, your landlord doesn’t know you in the slightest. Your best chance at nailing down a solid cosigner is to pick someone who has experienced your character, reliability, and consistency firsthand. This could be a relative or close friend.
More likely than not, this person will have to complete the same thorough background check as you (which will include an intensive credit check). Ensure your cosigner-to-be boasts a solid credit history and admirable financial record. If not, it could be back to the drawing board.
Keep in mind that this person will be risking their financial standing if you lack rent funds, so make sure your future cosigner is both able and willing to lend a hand if needed.
Benefits of having a cosigner
1. You can get approved with poor or no credit
Whether you’re a recovering shopaholic or just beginning your credit-building journey, poor credit scores or no scores at all will often raise a red flag for landlords. While this certainly doesn’t mean you are an unfit tenant at present, past credit card mistakes and a lack of record altogether can serve as apartment-renting showstoppers. Fortunately, by securing a cosigner with stellar credit, you can continue growing your credit score from the comfort of your brand new (or new-to-you) apartment.
2. First-time renters can secure an apartment
Maybe you’re fresh out of college or on your own for the very first time. Whatever the scenario, first-time renters occasionally get turned down by landlords for lack of rental history or references to cite. If you obtain a cosigner, your property manager may feel more at ease renting to an apartment newbie. And good news— you’re only a first-time renter once! So, after this first rental, it’ll be a non-issue going forward.
3. Those with eviction history can be approved
If you’ve ever received an eviction notice and haven’t responded accordingly, a history of eviction may be stamped on your public record. But don’t panic! Whether this eviction was due to lease violations, failure to pay, or some other reason, your chances of securing an apartment increase if you have a cosigner backing you up.
It’s important you’re transparent with your cosigner since they’re putting themselves and their wallet on the line for you. It’s wise to disclose things like past evictions to your cosigner if they aren’t already aware. This way the cosigner can make an educated decision before signing on the dotted line.
4. They can allow you to live in a complex you wouldn’t otherwise qualify for
Although you were approved for several affordable apartments, perhaps you can afford to pay more and really had your eyes set on a luxury complex in the heart of downtown. While you may not be approved solo, a cosigner could seal the deal. This could afford you opportunities you wouldn’t otherwise have— no pun intended.
Risks of having a cosigner
1. It can strain or damage relationships
Cosigners are often people in your life that you respect or care about, like a parent or close friend. If you can’t come up with the dough for rent or cover the costs of damages, it’s going to be denting your cosigner’s pocket. If they refuse to pay, you could both have an eviction. If rent remains unpaid, your cosigner’s credit can take a hit as well.
All this being said, your cosigner’s commitment is no joke. If you impose financial inconveniences on a cosigner (albeit inconveniences they legally agreed to account for), then your relationship could become awkward or damaged. This is an important risk to consider when you’re choosing who to ask.
If you don’t want to risk the relationship or simply don’t have a candidate in mind, you have other options available. Cosign services allow you to pay an upfront price to be paired with a cosigner. If you’re approved for this service, it’s important to note that you’ll be contractually obligated to pay back the company if you require the cosigner’s aid. This is only legally viable for a hand-picked cosigner if you write up an agreement yourselves.
2. Property managers have the right to choose tenants that do not need a cosigner
Although having a cosigner increases the odds of securing your dream place, it doesn’t guarantee it. Although many landlords are perfectly comfortable with a solid tenant-cosigner duo, some prefer to avoid the situation altogether. If the landlord feels it's what's best for their rental, they are within their rights to deny your application.
