What is a Co-signer?

You’ve finally found the perfect apartment. The next step is to get approval from the landlord. For this, you’ll need good credit, substantial rental history, and an income around 3 times the monthly rent. Sound easy? Not always. Meeting a landlord or property manager’s rental qualifications can be difficult, especially for first-time renters. If for any reason you fall short of the landlord’s guidelines, you’ll want to consider having a co-signer for the lease agreement.

What is a co-signer for an apartment?

A co-signer is a person who signs a lease agreement alongside the renter and, by doing so, accepts financial responsibility for the apartment if the renter is unable to pay rent. This is typically done in order to prove to the landlord that the renter is dependable and will follow through on rent. For the co-signer, this may mean stepping in to make any outstanding payments the renter finds themselves unable to meet, as these can affect the credit scores of both the renter and co-signer if left unpaid.

When would I need a co-signer?

The screening process to determine your eligibility to rent is generally conducted with a rental application. On a rental application, you’ll supply information such as your rental history, reason for moving, length of employment, monthly income, and criminal record, if applicable. 

When selecting a renter from among applicants, the landlord looks for a reliable individual who will keep the property in good condition and make all payments in full and on time. You might need an apartment co-signer if for any reason your credit, rental history, or employment status put this in doubt.

Certain factors that may require you to have a co-signer include:

• Poor credit or no credit: Landlords look for renters with a credit score that proves the applicant is financially responsible. For this, you’ll usually need a credit score above 620, but 700 is ideal to demonstrate your financial dependability. No credit history can also be a deal-breaker for landlords, as this makes it challenging to determine the potential risks. This often makes it difficult for young renters to sign a lease agreement on their own. If you have no credit history — and therefore no credit score — you’ll more than likely need a co-signer.
• Low income or no income: On average, landlords ask that rental applicants have a minimum monthly income of roughly 2.5 times the stated rent. This is to ensure that all payments are met, even under extenuating circumstances, such as job loss or other events that may inhibit your ability to acquire the money necessary for rent. For example, if an apartment’s monthly rent is $1,200, rental applicants are expected to make $3,000 per month. If you find yourself falling short of this requirement, you’ll want to find an apartment with lower monthly rent or seek out a co-signer.
• A history of eviction or no prior rental experience: If you’ve been evicted from a rental property for any reason, this sends up a red flag for landlords. Having a co-signer is an easy way to give the landlord peace of mind that you’ll treat the property right and abide by the lease agreement. Similar to having no credit history, an absence of rental experience can also cause a landlord to hesitate in taking you on as a renter. For this reason, first-time renters may also need a co-signer. 

Who should I ask to co-sign?

When it comes to finding a co-signer, you’ll want to choose someone who fulfills any and all renter qualifications that you’re unable to meet. If you have a lower income than requested, you’ll need a co-signer who makes enough money to cover the minimum. If you have no credit history, you’ll want a co-signer with a score on the upper end of the spectrum. This can typically be a parent or a close friend as long as they’re comfortable and willing to take financial responsibility for the property. 

It’s important that both you and your co-signer know and understand that any breach of the lease agreement would reflect poorly on both parties. Be sure to discuss all potential outcomes of co-signing — even those you consider unlikely — to make sure that both parties are prepared for anything that could come your way. 

What if I can’t find a co-signer?

If you’re unable to find a reliable co-signer for an apartment, you still have a few options. 

Landlords may still be willing to accept you as a renter if you can provide a legitimate reason for any failure to meet the designated renter requirements. For example, if you were evicted by a previous landlord, you’d want to explain the reason for eviction, what you did to remedy the situation, and how you’ve changed your behavior to prevent future evictions. Proof of this will go a long way here, so any documentation you can provide, even a rental reference, can help you plead your case. 

Money can also prove a viable way to show you’re good for your word. Offering a larger security deposit or more rent upfront could help to convince a landlord that you’re worth the risk. Opting to take a cheaper unit may also help, and it shows how invested you are. 

If worse comes to worst, looking for another housing option will give you time to speak with other potential co-signers, build your credit, or grow your available funds. You might also find that properties owned and managed by local companies or an individual landlord have less strict renter requirements. This could help you find a willing co-signer or apply without one. 

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