Applicant with cosigner vs Standalone Applicant.What's riskier?

[Christopher Lim]

Hi All,

I'm down to 2 prospective tenants for my first rental and was wondering if anyone had any experiences with co-signers? One prospective tenant has a decent income and is keeping under the "30% of your income as rent" guideline, while the other is above that, but with a substantial guarantor. Does the prospect with a cosigner present less risk with a cosigner or more risk based on income? Both applicants passed background checks, but different credit scores. Should I skip both and hold out for a better tenant?

Applicant 1 - Income 65k (29% of Income as rent), ~670 credit score

Applicant 2 - Income 50k (new job) + Cosigner 240k (39% of Income as rent). Both ~770 credit score. Based on estimation, they would have ~700/month leftover for food, gas, car, etc

Current rent 1600 (includes utilities)

[Julie Hartman]

@Bjorn Ahlblad makes excellent points about debt. If applicant 1 seems to have debt in check and/or if it is student loans, 670 isn't a terrible score at all. If they have the income and are making their payments on time, then they are probably ok.  Applicant 2 also looks good on paper from your description. We've never had a bad co-signor experience especially when it's been a parent. It's an extra layer of protection for you. And people with credit in the 700's usually don't want to jeopardize it.