Use a Cosigner to Rent an Apartment

Some apartment renters don't expect landlords to check their credit history and base approved on their past record. However, more and more apartment complexes have begun running credit checks on applicants. Past issues, such as missed payments, late payments and even a high debt-to-income ratio can stop an approval and reduce rental options. But while some apartments have strict credit guidelines, they might relax their requirements if there's a cosigner on the rental agreement.

Who are Cosigners?

Cosigners are your saving grace if you have a low credit score. This is an individual with a good credit history who voluntarily signs your rental agreement and functions as a backup payee. As a backup on your agreement, this person is next in line to make the rent payment. They're only required to make the rental payment if you default. Finding someone to accept this responsibility is often challenging. The cosigner might not necessarily live in the apartment, but he is a co-applicant and liable for as long as his name remains on the lease.

How Cosigning Works?

Understand that not every landlord will put a cosigner on your rental agreement. Having a cosigner might require this individual occupying the unit with you. But if you come across a flexible landlord who permits a non-occupant cosigner, the cosigner must complete the rental application with you. Giving verbal confirmation isn't enough to qualify as a cosigner. This person must write his name on the application, provide his home address, employer name and address and evidence of income. What's more, he must give the landlord permission to run his credit report.

Once your landlord approves the application, your cosigner must return to the office and sign the rental agreement with you. Landlords reach a decision on approval by combining both credit scores, if applicable, and both monthly incomes.

What to Consider?

Lease terms are normally 12-month agreements, and cosigners remain on the lease for the duration of this one-year period. Anyone who cosigns needs to recognize the long-term consequences. Cosigners can't sign a lease and then request removal after a few months. Cosigners can only remove their name after the lease term ends.

"Potential Consequences of Cosigning an Apartment Lease," Experian Credit Bureau
Don Taylor, "Getting an Apartment after a Bankruptcy," Bankrate.com