If you are a South End renter, you may be familiar with the terms “cosigner” and “guarantor.” What do they mean, however? Exactly how do the two differ from one another? The distinctions between cosigners and guarantors will be discussed in this blog post, along with advice on how to address friends and family for help.
What is a Cosigner?
A cosigner signs a lease with you and accepts the responsibility to be liable for the rent if you are unable to pay. Even if only on paper, a cosigner is considered to be an additional tenant. A cosigner must first sign the lease with the tenant and then can legally occupy the rental property. This individual is also willing to share the financial responsibilities of a tenant, including any possible expenses, unpaid rent, or property damage. In the majority of instances, a cosigner should have better credit than the renter and a much higher income, as they will need to demonstrate up to six times the amount of rent to qualify. A young or first-time renter may find it much simpler to qualify for a rental home with the help of a co-signer.
What is a Guarantor?
A guarantor, in contrast to a cosigner, promises to pay your rent only in the event that you are unable to. A guarantor is not regarded as a tenant and has fewer rights than a co-signer. A guarantor serves as a financial safety net in the event that the tenant is unable to pay their debts. Like a co-signer, a guarantor must demonstrate income that is at least six times the monthly rent.
The key distinction between a cosigner and a guarantor is that a cosigner is legally liable for the rental residence, whilst a guarantor is only financially responsible. In the event that the tenant fails to pay rent or make necessary repairs to the property, the guarantor is held financially liable. A cosigner, on the other hand, is accountable for paying the rent regardless of whether or not the tenant pays.
Why You Might Need a Cosigner or Guarantor
You may require a cosigner or guarantor for a variety of reasons. Maybe you are fresh to the rental market and do not yet have established credit. Or you may have experienced financial difficulties, resulting in a lower credit score. Whatever the reason, you might need to enlist the assistance of a friend or relative if you can’t get approved for an apartment on your own.
How to Ask Someone to Help
It’s important to be open and truthful when asking someone to cosign or serve as your guarantor. Justify your need for assistance and let them know what would happen if you were unable to make rent. A copy of your lease agreement or proof of your income should be given to them as well. Finally, make sure they are aware that if you are unable to pay your rent, they may be held accountable. Choose a person you trust and who is financially secure as a result, as this will work best.
Finding a cosigner or guarantor is a significant choice. But if you are truthful about your financial situation and explain the associated risks, the appropriate person will be eager to assist you. One of our South End property managers is available if you have any additional inquiries.
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We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.