Guarantor for Renter

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

3mo

Hi RS. I have had this happen a couple of times with young people and I used the same criteria for co-signer. In one case mom elected to be the tenant on lease with her daughter as an occupant. Another time mom of one of the couple was included as joint tenant(s) with her son and son’s girlfriend. Small sample but both were great tenants. I kept it like this for as long as they stayed but would have been open to changing after 1st year term if they had requested.

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David Krulac

Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes

3mo

for my co-signers to a lease, my best would be an owner of real estate in the county of the rental or in a close by county. (No out of state or long distance collateral.) We had a case where a tenant did not have work history or suffiicent credit. They volunteered that they had a childhood friend, who was a real estate owner nearby. We did check out the co-signer and they also signed the lease. Later the tenant lost his job and could not pay the rent and we had to evict. The co-signer came to the hearing and lied under oath, but the judge tripped him up and asked if it was his signature on the lease and he said yes. I got the verdict and the judgement. I recorded the judgement at the courthouse, and neither party paid me. Finaly, the co-signer wanted to refi his house and had to pay me the principle plus 7 years of interest to get his house refinanced.

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

3mo

I typically have not had a guarantor as to go after them and sue them is usually gonna cost me time and money and even if you get a judgment then you still have to collect on it. If this was in NY or CA where a tenant could be there a very long time without being evicted it makes sense but if it is in a jurisdiction that has quick eviction laws if they default, it may have you sleep better at night knowing you have that guarantee but it will still be a long a costly battle to collect against it, so my point being if you think its a potential good tenant I would not get caught up in whether you do or do not have a guarantor.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

3mo

Quote from @Raveendra Singh:

Hi BP Community.... First of, thank you so much for all your comments and help. "Its like having elders for support when you are discovering the world."

I recently posted question about the screening criteria. I came across a situation where the renter has no rental history. They have secured a very good job at a good company, they pass the other standard criteria such as good credit score, Income, etc.
I have 4 questions.

1. What screening criteria should i have for Guarantor . in my case they are parents of renter and are retired. What should be my focus as a landlord.
2. Should i request background check on Gurantor like I would for renter.

3. Should the guarantor fill the application, should their name be on lease or just as guarantor.
4. What is your typical criteria to take guarantor off the lease - Once renter has shown "xyz" for how long ?

Thank you !!
RS

How "deep" is their credit report?

How many active tradelines at least 24 months old? 12 months old?

If they have enough credit why do you care about rental history?
- You could inspect property every 3 months if you're worried about damages.

If you go cosigner route:
1) Cosigner fills out app, supplies all same info and you do background check
2) They sign the lease as a, "Non-occupying Guarantor"
3) Maybe agree to remove them after 12 months of acceptable payments AND inspection showing the property in acceptable condition.

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

3mo

Quote from @Raveendra Singh:

Hi BP Community.... First of, thank you so much for all your comments and help. "Its like having elders for support when you are discovering the world."

I recently posted question about the screening criteria. I came across a situation where the renter has no rental history. They have secured a very good job at a good company, they pass the other standard criteria such as good credit score, Income, etc.
I have 4 questions.

1. What screening criteria should i have for Guarantor . in my case they are parents of renter and are retired. What should be my focus as a landlord.
2. Should i request background check on Gurantor like I would for renter.

3. Should the guarantor fill the application, should their name be on lease or just as guarantor.
4. What is your typical criteria to take guarantor off the lease - Once renter has shown "xyz" for how long ?

Thank you !!
RS

Welcome to BP! Based on what you described, this sounds like a pretty strong applicant overall. No rental history by itself isn't necessarily a deal breaker, especially if they have stable income, good credit, and a solid job. For the guarantor, I'd focus on their ability to actually cover the rent if needed. Since they're retired, I would look at assets, retirement income, pensions, investments, or any other reliable income source rather than just employment. I would absolutely run the same background and credit checks on the guarantor that I would on the tenant because you're relying on them as a financial backstop if things go sideways. In my leases, the guarantor completes an application and signs a separate guaranty agreement rather than being listed as a tenant on the lease, since I don't want them to have occupancy rights. As for removing the guarantor, I personally rarely do it during the lease term. If I were going to consider it, I'd want to see at least 12 months of on time payments, lease compliance, and enough income and credit strength from the tenant to qualify on their own. At that point I'd treat it almost like a brand new approval process before releasing the guarantor. Happy to connect and answer any questions you have!

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Jim Johnson

Real Estate Agent · Memphis · Member since 2026 · 549 posts · 317 votes

2mo

A lack of rental history by itself wouldn't necessarily stop me from considering the application, especially if everything else looks strong.

For a guarantor, I'd generally want to evaluate them much like I would any financially responsible part. If they're agreeing to back the lease, I'd want confidence they have the financial ability to do so if needed.

In your situation, I'd be thinking about:

• Their income and assets
• Credit history
• Overall financial stability
• Whether they're willing to guarantee the full lease term

I'd also have the guarantor complete an application and authorize whatever screening is part of my standard process. Even if they aren't living in the unit, they're taking on a financial obligation.

Personally, I'd keep the guarantor as a guarantor rather than making them a tenant on the lease, unless there's a specific reason to structure it differently. That keeps the occupancy and financial responsibilities clearly defined.

As for removing the guarantor, I wouldn't make it automatic. I'd usually reassess after the tenant has established a solid payment history and still meets my qualification standards independently. Whether that's after one lease term or a renewal would depend on the circumstances and your written policy.

Whatever criteria you decide on, I'd document it and apply it consistently. That consistency is just as important as the specific standards you choose.

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Guarantor for Renter

Guarantor for Renter

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