what rights does a parent have as a cosigner?
I have a friend whose, daughter is getting her first apartment. She only makes 2 times rent and they require 3 times as most do. They would accept her if her father (My friend cosigns). I have not done cosigners so I am trying to advise him well. The issue of whether or not the daughter can afford it has been discussed. My question is about the rights of the cosigner and the extent of liability. My thought is that the cosigner has no rights to enter the property but does hold financial responsibility for unpaid rent as well as damages.
A suggestion I made was to be a Co-applicant so that he has full rights to the property as well as financially. Sign a 6 months lease with the intention that the daughter gets her income up within those 6 months and can be the sole lessee after 6 months.
Please let me know your experience with cosigners and if you would have any problems with a parent being a non resident lessee so that they can monitor condition and have a little more control. Thank you.
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Since we have several student rentals we run into this all the time. However, we do not have parents sign the lease as a co-tenant ... since they will not be living in the premises. What we do is have the parents as guarantors and execute a separate guarantee agreement which is attached as a schedule to the lease.