You might be familiar with the terms “cosigner” and “guarantor” if you are an Owasso renter. But what do they really mean? And what makes the two different from one another? This blog post will explain the distinction between cosigners and guarantors, as well as make suggestions on how to solicit assistance from friends and relatives.
What is a Cosigner?
A cosigner signs a lease with you and accepts the responsibility to be liable for the rent if you are unable to pay. A cosigner is regarded as an additional tenant, even if it’s just on paper. In order to be able to legally occupy the rental property, a cosigner must sign the lease with the tenant. This individual is also willing to share the financial responsibilities of a tenant, including any possible expenses, unpaid rent, or property damage. In the majority of cases, a cosigner will have better credit than the renter and a significantly higher income, as they will need to display up to six times the amount of rent to qualify. A co-signer can make it much simpler for a young or first-time renter to qualify for a rental home.
What is a Guarantor?
A guarantor, in contrast to a cosigner, promises to pay your rent only in the event that you are unable to. A guarantor is not a tenant and does not possess the same rights as a co-signer. In the event that the tenant is unable to pay their debts, the guarantor will act as a financial safety net. A guarantor, like a co-signer, must demonstrate income that is at least six times the monthly rent.
Key Differences
An important distinction between a cosigner and a guarantor is that a cosigner is legally liable for the rental property, whereas a guarantor is only financially responsible. If the tenant fails to pay rent or repair property damage, the guarantor assumes financial responsibility. In contrast, a cosigner is obligated to pay the rent regardless of whether the tenant pays.
Why You Might Need a Cosigner or Guarantor
There are a few situations where a cosigner or guarantor may be required. Possibly, you lack established credit because you are new to the rental market. Or perhaps you’ve encountered financial difficulties, which have caused your credit score to decline. Whatever the reason, you might need to enlist the assistance of a friend or relative if you can’t get approved for an apartment on your own.
How to Ask Someone to Help
It’s important to be open and truthful when asking someone to cosign or serve as your guarantor. Describe your need for assistance and what would happen to them if you were unable to make rent. You should also provide pertinent documentation, such as your lease or income verification. Finally, make sure they are aware that if you are unable to pay your rent, they may be held accountable. Because of this, it’s best to select a reliable and financially secure person.
A big choice is making someone your cosigner or guarantor. However, the right person will be happy to assist you if you are honest about your financial situation and outline the risks involved. You may contact one of our Owasso property managers if you have additional questions.
Are you looking to rent a new house? View our available rentals online for a list of quality rental homes in your area!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
