I’ve had these tenants in question this will be their 3 lease signing come may 1st. I would say b- c+ tenants. It was two older grandparents and their granddaughter who was pregnant when we signed original lease. Well, granddaughter wants to have new husband move in and grandparents out. But have the grandmother co sign. So it would be the two young adults and their baby. I don’t know if they would qualify on their own. I need help with this one.
First evaluate the "new" tenants just as you would any other new tenant. If they qualify, then its simple.
Second, if they are borderline and you want extra assurance, how much stock do you place in the grandparents' as cosigners?
If these new tenants don't pay, what makes you think you'd be able to collect from the grandparents? Collecting on judgements is hard. The few times I have allowed a cosigner it has been because the cosigner owned a home. So, any unpaid judgement would become a lien on the property and give me a much better chance to collect eventually.
So, basically I only put any stock in a cosigner if they have assets and are "collectible".
@Kevin Sobilo excellent feedback. Thanks
Normally if we have an existing tenant who shows they can pay rent, we worry less at resigning, but this is a bit different. If grandparents are the big reason they qualified, need to put them through all your normal new tenant paces.
We've used a co-signer twice, with mixed results.
In one case it was a grandparent who owned a house, but we didn't know that she was terminally ill. We signed paperwork in the grandmas house. Any tenant who is that sneaky ends in disaster. We never collected anything.
Another adult son with a poor rental history had a dad as a co-signer. The tenant disappeared in the night with rent due, with belongings still there. We were able to work with the dad to get the tenancy ended sooner and he paid his son's debt to us.
You should screen the incoming tenant if they qualify.
Qualify her and her husband on their own. If they require grandparents as co-signers, that's a big red flag for trouble down the road. I only allow co-signers for college students; everyone else has to qualify on their own or rent somewhere else.
@Nathan G. Agreed. This is an odd situation. I have two years of rent payments made. But that’s with the grandparents on the lease. Now she is telling me the husband she wants to move in has no id, no SS and is self employed. I think this is a definite no.