How to Co-Sign a Rental Lease

Co-signing a lease can be risky if the tenant defaults.

Co-signing a rental lease is a straightforward process but not something to take lightly. When you co-sign a lease, you are on the hook for the rent if the tenant defaults, and any late payments or evictions will show up on your credit. To co-sign, you will need to meet the guidelines of the rental company and sign the contract.

Instructions

1. Read the rental agreement. Find out how much the monthly rental payments are and how long the lease will last. Also ask if you will be notified if the renter misses a payment before the property reports the late payment to credit bureaus or before they file any eviction proceedings. Will you be responsible for damage to the property if the renter doesn't pay? Will your co-signing agreement be extended automatically if the renter renews the lease? Get the answer to all of these questions before signing.

2. Gather the required supporting material. Lease requirements vary from company to company, but you may be required to submit pay stubs, bank statements, proof of address and other materials to qualify as a co-signer.

3. Complete and submit the co-signer application, along with your supporting materials. Depending on the rental company's policies, you may be required to submit your co-signer application together with the prospective tenant's application.

4. Review and sign the lease. If you are approved as a co-signer, make sure the lease reflects all of the terms you discussed with the rental company, and sign the lease. Once you sign, you are financially responsible for the lease if the tenant defaults.

Tips & Warnings

• Some rental properties do not accept out-of-state co-signers.

References

• Washington Post: Co-siging a Lease Carries Risk, Responsibilities
• People's Law: Co-signers
• All Business: Should I Accept Cosigners for the Lease Agreement of My Rental Property?