Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
I have a potential applicant who wants to rent the unit for his retired parents who do not have sufficient income to qualify. He would co-sign or take the lease himself, and let them live there. I don't recall ever allowing a co-signer, it always seemed just a licence to sue a 3rd party if things went bad, so I don't have actual experience with this. Any thoughts on what my liabilities are in the situation above a normal tenancy? I'm thinking it won't happen as it's a 3rd floor walkup, but I'd like to have a well thought out answer.
I've rented and even had clients rent with a co-signer. While I'm not an attorney, the cosigner is responsible, along with the actual tenant, for the terms of the lease. I always thought it was great insurance. I know that with college student housing, the student usually does not qualify, and the parent(s) typically co-sign to ensure payment of rent.
But, I think you're right, a 3rd floor walk up for an elderly couple may not fly ;-)