My husband and I will be renting to two college kids who, do to their age, do not have a credit background and (since they have retail college jobs) make $50 less than 3x the rent (net income). The mother who attended the viewing is going to co-sign for them. It was recommended to me that I collect a refundable performance guarantee fee from co-signer so she has some skin in the game. What is typical for this fee? I was thinking half of one months rent-- does that sound reasonable? I will also be collecting one months rent for security deposit from tenants.
Thanks in advance for your reply.
@Brittany Regts I've never heard of a co-signer fee. I would think the skin in the game is the signature.
I've rented to ~1,000 college students and only had 4 not pay their lease in full. They almost always pay. At least in my market.
If you'd like to get more from them, I'd recommend asking for first month, last month and deposit prior to move in. That has worked really for me.
Thanks, guys. I altered the co-signer agreement to require no performance fee.