Tenant without Established Credit and Foreign Parents

[Denise Gold]

Hello,

I have a prospective tenant who is foreign.  She has just graduated from college in the U.S. on a student visa and is looking for full-time employment (her visa is valid for another 10 months).  She has not yet established credit.  Her parents (who live abroad) are willing to co-sign, but I don't see a way to run a credit check on them or, practically speaking, how I would even enforce a co-signer agreement with them if the tenant and her parents default.  Any suggestions?   You can assume she cannot pay full rent for the lease term up front.

Thanks very much for any assistance!

Denise

[Kenny Dahill]

@Denise Gold, a few ideas to help reduce risk:

• Upfront Rent: Have them pay the first 2-3 months upfront, plus the security deposit.
• Increased Security Deposit:  If they are against upfront rent then consider increasing the security deposit to your area's legal max.
• Proof of income/funds:  Have the co-signer provide their latest 2-3 bank statements to prove they can afford it.
• Roommates: Are there any roommates for this individual or is it a single?
• Background Check: Anyways she doesn't have credit, I would still run the background and credit reports on her.
  Month-to-Month Lease:  Have her accept a shorter term lease that way you can cancel the renewal much earlier in case something happens.  It could be a 1,3, or 6 month lease.