Cosigner

Example

Jordan, 22, earns $3,600 a month and applies for a $1,400 apartment where the landlord wants income of 3 times the rent, or $4,200. Jordan’s parent cosigns the lease. If Jordan misses a month, the landlord can bill the full $1,400 to either of them, and a judgment for unpaid rent can name both. The lease says the cosigner has no right to live there, so the parent carries the risk without the apartment.

In a lease it looks like…

Co-Signer signs this Lease to secure Tenant’s obligations and is jointly and severally liable with Tenant for all rent, fees and damages. Co-Signer shall not occupy the premises.

Good to know

Cosigner and guarantor are often used for the same role. The practical difference is the paper: a cosigner signs the lease, a guarantor signs a separate guarantee, and either can be pursued for the whole debt. Before signing, ask whether the obligation continues if the lease renews.