As an independent owner, you have the opportunity to make the best decision for your rented property. If you decide to accept a co-signer, make sure that you also conduct a thorough review of that person`s tenant. This is one of the best ways to ensure that your investment is protected. Accepting a co-signer can help you fill vacancies when the market is tight, while ensuring you have recourse if rent isn`t paid on time. Instead of just turning down an applicant with poor creditworthiness or low income, you can accept it and reduce your risk with a co-signer. For example, you may not be allowed to charge more than two months of rent on deposit. If the deposit is not enough to compensate for your losses in case of non-payment or damage, a co-signer may be the best option. TransUnion SmartMove allows you to verify potential tenants and co-signers in minutes without having to keep their personal data. SmartMove provides credit information for tenants, a criminal background check for tenants, and a national eviction report so you have a more complete picture of your context.
With reliable information from TransUnion, you can feel safer in your decision to accept a tenant with a co-signer. No Nonsense Landlord states that a co-signer does not help with risks based on the personal behavior of a tenant separated from the financial risk. For example, a co-signer will not help with problems such as noise complaints, unnecessary behavior or shutdown of public services. You should, however, check your tenant carefully. There may be certain circumstances in which a co-signer may not be the answer. If a tenant doesn`t have enough income to cover the rent, it`s likely that you`re chasing both parties` rent and that means more work for you. If a person has a criminal record, a co-signer may not be able to reduce the associated risk. . . .