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General Landlording & Rental Properties

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David Moore
  • Investor
  • Crystal, MN
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Brother of Potential Renter wants to pay

David Moore
  • Investor
  • Crystal, MN
Posted Mar 5 2015, 08:50

I'm showing one of my properties and I've gotten a good response to come see the property.  One guy sounded really impressed with the property, and he was very confident in his credit, telling me he is an electrical engineer.  He says he wants to help his sister, who is divorcing the husband, and needs a place soon for her and the two kids.  I will require both the adults to do the credit check...he doubts her credit is good.  Yet, the brother is convinced he will foot the bill each month.

No matter how well intentioned, 2 or 3 months out, if she isn't getting assistance or looking for work, how can I trust this guy to keep paying the rent?  I know how family relations can sour in a minute.  Have any of you come across a similar circumstance, and can you share how you addressed it?  I have other applicants, but I want to give this guy a fair shake.

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Richard C.
  • Bedford, NH
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Richard C.
  • Bedford, NH
Replied Mar 5 2015, 08:53

If he's signing the lease, he is legally obligated.

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Adam Hershman
  • Las Vegas, NV
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Adam Hershman
  • Las Vegas, NV
Replied Mar 5 2015, 08:58
Originally posted by @Richard C.:

If he's signing the lease, he is legally obligated.

 I agree.

The whole point of a co-signer with good credit is that he has good credit, and as long as you subscribe the principles of most lenders, can be relied upon to satisfy debts. 

If you think it is too much of a risk then take a pass, if not have him sign. If hes a 750 plus score and advertises that he has good credit, he probably wont wan't to jeopardize that. 

Adam

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Marcia Maynard
  • Investor
  • Vancouver, WA
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Marcia Maynard
  • Investor
  • Vancouver, WA
Replied Mar 5 2015, 09:53

The lack of good credit can be covered by the cosigner. I agree with the above responses. Also, don't overlook the need to do thorough screening of those who will actually live in the home. You want renters who will take care of the place and who will follow the terms of the rental agreement. Set clear expectations from the start.