If you are a Providence renter, you may be familiar with the terms “cosigner” and “guarantor.” What do they mean, however? Exactly how do the two differ from one another? We’ll outline the distinctions between cosigners and guarantors in this blog post, as well as offer advice on how to solicit assistance from friends or family.
What is a Cosigner?
A cosigner is someone who signs your lease with you and pledges to pay the rent if you are unable to do so. Even if only on paper, a cosigner is considered to be an additional tenant. A cosigner must sign the lease with the tenant and may legally occupy the rental property as well. This individual is also willing to share a tenant’s financial obligations, such as any potential fees, unpaid rent, or damaged property. A cosigner generally has better credit than the renter and a higher income because they must show an income of at least six times the rent in order to qualify. Young or first-time renters may find it much easier to qualify for a rental home with a co-signer.
What is a Guarantor?
In contrast to a cosigner, a guarantor agrees to pay your rent only if you are unable to. In contrast to a co-signer, a guarantor is not regarded as a tenant and does not have the same rights. A guarantor can be viewed as a financial safety net in the event that the tenant is unable to meet his or her financial obligations. Like a co-signer, a guarantor must show income that is at least 6 times the monthly rent.
Key Differences
The key distinction between a cosigner and a guarantor is that a cosigner is legally liable for the rental residence, whilst a guarantor is only financially responsible. A guarantor assumes financial responsibility if the tenant fails to pay rent or repair property damage. A cosigner, on the other hand, is liable for the rent whether or not the tenant does.
Why You Might Need a Cosigner or Guarantor
You might need a cosigner or guarantor for a few different reasons. Maybe you are fresh to the rental market and do not yet have established credit. Or maybe you’ve undergone financial difficulties, causing your credit score to suffer. If you cannot qualify for an apartment on your own, you might have to request a friend or family member for assistance.
How to Ask Someone to Help
When requesting a person to be your cosigner or guarantor, it’s crucial to be truthful about your financial situation. Clarify why you require their support and what their role would be if you were unable to pay your rent. You must also supply them with any crucial documentation, such as your lease or proof of income. Last but not least, be sure they are aware that if you are unable to pay your rent, they may be held accountable. Therefore, it is preferable to choose someone you can trust and who is financially secure.
Finding a cosigner or guarantor is a significant choice. But if you are truthful about your financial situation and explain the associated risks, the appropriate person will be eager to assist you. If you have additional inquiries, please contact one of our Providence property managers.
Are you looking for a new rental 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.
