As a landlord, you may not want to take the risk on students because of their age and relative inexperience renting but one way to quickly overcome this is by requiring a cosigner on the lease. Having a co-signer will ensure that you receive the rent and you can sleep easy knowing that each month’s rent will be covered no matter what even if your student tenants are tight on cash.
what is a co-signer
A co-signer is someone that agrees to take responsibility for the lease and paying the rent if the tenant is late or misses payments. In terms of student renters this is usually a parent or guardian, so if your tenants miss a payment you are assured that you will get the money from them. Depending on the lease agreement, they may also be responsible for any damage caused to the apartment in the tenant cannot pay for it themselves.
When requiring your tenants have a co-signer you should have them fill out the same background check information. This includes personal information like current address and employment hitory as well as the required info to run a credit check to ensure that they are able to pay the rent if the tenant is unable to do so. Assuming all the background info is adequate, you will then have the guarantors sign part of the lease to confirm they will take responsibility for paying the rent if need be.
Young tenants often have poor credit history due to their age, so giving them the option of having a co-signer will open up the pool of potential renters. They may also not have a rental history because they are still in school, but having their parents listed on their lease may make them more responsible tenants. Many people believe that students might be unreliable renters but having a guarantor absolves you of any risk involved. Having a guarantor on the lease assures you that you will receive the full rent on time and save you from starting the eviction process.
With a co-signer you can be confident that your student tenants will always pay rent on time, so why not make rent rewarding for your tenants. RentMoola allows your tenants to pay their rent online from anywhere and give them access to exclusive deals through MoolaPerks with many top brands. Find out more information here.