When renting an apartment, the property manager often checks references from previous landlords to determine whether an applicant is reliable. If this is your first apartment, you may not yet have established references or a rental history. In this case, the landlord may request a co-signer on your lease to ensure that they will receive rent. A co-signer signs a lease along with the renter, even though they usually aren’t going to live on the property, and accepts financial responsibility if the renter defaults on the rent.
There are many possible reasons you may be reluctant to find a co-signer. You may not want to ask anyone for a financial favor, you may feel uncomfortable doing so, or you may not have a close friend with a solid credit score. Even if there is someone you know who might agree to co-sign for your apartment, you may not want to put your friend or family into that position. When a landlord asks for a co-signer on a lease, there are several ways you might be able to get around this requirement.
Pay Several Months of Rent in Advance
Some landlords may allow you to pay rent in advance, such as paying three to six months of rent before moving in. The pre-paid rent gives the landlord security and allows them to lift the co-signer requirement. Although this kind of agreement requires you to save up a larger sum of money prior to moving in, it’s one method for eliminating the need for a co-signer.
It isn’t legal in all areas for a landlord to receive more than one month of rent in advance, so it’s important to research the state and local laws where you desire to rent.
Offer a Larger Security Deposit
You may be able to pay an extra security deposit, which requires more money in the short term, but it will give you a nice return when you’re moving on to your next place. As long as you pay rent on time, take care of the property, and follow the guidelines on your lease, you should get your security deposit back.
Provide Proof of Trustworthiness
Providing your prospective landlord with personal documents that attest to your trustworthiness may alleviate the requirement for a co-signer. For instance, you may share pay stubs or bank statements for the past year showing proof of income. You may be able to collect personal references from bosses or professional acquaintances who will vouch for your reliability and character. If you had a roommate in the past, you may be able to get a personal letter of recommendation from your prior roommate as a reference.
Search for an Apartment That Doesn’t Require a Co-Signer
You may be able to find an apartment that doesn’t require a co-signer. While larger apartment complexes often have property managers and strict applicant policies to follow, a private landlord or smaller apartment location may be more lenient in this area. You may also rent an apartment on the upper floor of a private home without a co-signer.
Sometimes renters sublease an apartment, and in this case, they already have a rental lease so there won’t be a co-signer requirement for this type of arrangement.
Find a Roommate
Instead of a co-signer, you may be able to find a roommate. A landlord may remove the need for a co-signer if there are two renters listed on the lease.
Maintain Good Credit
One of the primary reasons a landlord requires a co-signer is to reduce their losses in case you default on your rent. Good credit is a strong indicator that you’re responsible and pay your bills on time, so having good credit can be a great way to get out of needing a co-signer.
If you already have below-average credit, you can start working immediately to clear that up by living within your budget and starting to pay all your bills on time. It may take several months, but over time your credit will improve and this will help you in many financial areas, not just in getting an apartment. Also try to keep the balance of your credit cards under 30% of your total available credit, since two of the biggest factors impacting credit scores are on-time payments and the amount of available credit used.
Negotiate a Higher Rent
Some landlords may accept an offer to pay a higher monthly rent to rent the apartment without a co-signer. For instance, you may offer to pay $1,050 or $1,100 a month for an apartment with a rent of $1,000 a month. The extra money offsets the risk of you defaulting on the rent.
Create a Rental Resume
If you’re looking to find an apartment without a co-signer, you can even prepare a rental resume that contains proof of your reliability. You can include items like the following:
- Bank statements or check stubs validating employment and income
- Receipts for bills you’ve paid on time
- Contact information for people willing to provide positive references
- Letters of reference from credible sources, such as a current or previous boss, roommate, or landlord
Whenever you use somebody as a reference, always be sure to check with them in advance and make sure they are willing to provide a positive recommendation for you.
While it may be more of a challenge to find an apartment that doesn’t require a co-signer, it’s definitely possible. There are many options out there, and each of us had to rent our first place at some point in our lives. Use some of these suggestions along with a little bit of diligence and investigative skills, and you’ll be able to move into your next apartment without a co-signer.
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