Cosigners -- do you accept them?

[Andy Kaye]

I have some applicants with low income, but they say their mom has good income and can cosign. Should I allow cosigners?

[Kelly N.]

Hi Andy,

If the applicant is a student (I invest in a college town) then I will allow a "personal guarantor" which means they guarantee the payment of rent and any other obligations but are not given automatic access to the property.  I check their income to make sure they are able to pay their own bills plus the rent for the applicant.

I had one fellow in his late 20's who brought mom along to see the apartment.  He was living with her and not going anywhere in life, she wanted to help him move out so she signed on as a personal guarantor.  She and the tenant's father were going to each pay 1/3 of the rent leaving 1/3 up to him.  I wasn't too keen the whole arrangement but it was the first time I had a vacancy to fill and an empty apartment- I had signed leases for all other apartments before they were even vacant.  Anyways, I should have taken the inability to support himself at that age as a warming sign about his maturity level.  Worst tenant ever even with rent being paid on time, ended up with his girlfriend kicking my husband in the chest on the day they were supposed to be out.  So long story short, if they can't pay the rent by themselves and don't have a legitimate need for support from family, they don't qualify.

Kelly