What to ask from a guarantor?

Question

Hi everyone, beginner landlady here; i am renting out my condo in NJ and found a tenant who is a student. His parents will be his guarantor and i was wondering what documents i should ask from them? Typically from the tenant i would ask for pay stubs, credit score, proof of income /employment, savings etc. Should the guarantors provide the same ? thank you!

Hubert Kim · Answer

Yes, the guarantor should provide the typical application documents for approval.

Peter Tverdov · Answer

I own a property management company that covers Central NJ and we deal with a ton of student rentals. You are likely more than fine with this person but I would recommend going over the Lease with them in person, as they don't know what they don't know. We always do that with the student rentals we manage.

Alex Smith · Answer

Screen them just like you would a regular applicant. More names on the lease is generally better for you if things were to go south.

Ricardo R. · Answer

@Margharita Silva yes you should verify them the same as you would a normal applicant the only difference is that they will not be listed as an occupant.

Jennifer T. · Answer

A one year lease is a one year lease.  Not even necessarily penalties, he could legally flat out refuse to move until his lease is up.  You'd probably need to offer him "cash for keys".  How much?  I don't know.  Depends on what you're willing to give and what he's willing to take for the inconvenience.  And, again, he wouldn't necessarily need to accept any offer you made.

You can do a shorter lease instead but, especially considering he is in school, he might want one that at least covers the whole school year.  As to how much notice you would need to give him if you are not going to renew his lease is usually at least 30 days before the lease ends.  But double check the landlord-tenant laws where this property is located.

Margharita Silva · Answer

@HubertKim the tenant is a student will attend postgrad at a local university. His mother will be his guarantor.

I did not check his current residency and pervious employment which i am not sure if he had.

his parents, both doctors will be his guarantor and they own a home . I will ask him to provide references from where he was previously staying.

Another question;I originally bought this unit as a primary residence but I ended up having to stay where i currently am longer than expected and uncertain of my plans.I expect to know in December, therefore  i may need to move there sooner than 1 year - i am giving him a one year lease - is this something that can be discussed with the tenant ? Would i incur any penalties for asking him to vacate sooner (legally) and how much of a notice i should give in advance in NJ state?

Hubert Kim · Answer

I suggest meeting to sign and go over the lease before handing over keys. Require a cashier's check for the 1st month and deposit as well. A move-in inspection of the premises is a must in order to be able to deduct for appropriate cleaning/repairs after the tenant leaves.

Just as a matter of caution, did you verify previous/current residency and employment?

Good luck!

Margharita Silva · Answer

ok i am asking one months deposit and first months rent. The background checks came good and no issues there (no evictions, liens, judgments, bankruptcy, criminal etc) How do i arrange deposit and keys? I was thinking about having them e-sign the lease but should i meet them to collect a check and have them sign the lease and then give them the keys? What is the protocol?

Wesley W. · Answer

In addition, I like @Brandon Turner's idea from his book by having them place a large cash deposit with you.  I forget what he called it - "performance deposit" or something.

What to ask from a guarantor?

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