Wearing straps in addition to a belt seems like oververkill until your belt breaks. The use of rental co-signers is a popular strategy to reduce the risk of rent payments, but it is not the only one. In some states, a co-signer of a lease is the same as a signatory to the lease. Therefore, unless the lease is otherwise available, the co-signer may have the same rights as a tenant who resides in the rental unit concerned or who works in a commercial rental unit. In other words, the co-signer may become a co-tenant, even if he does not live in the rented premises or if he does not do business. Therefore, if there is no further indication in the documents executed by the co-signer, it is important to communicate to the co-signers of a lease agreement all communications or other legal documents (for example. B the complaint about expulsion) which are served on the signatories occupying the unit. The co-signer contract should qualify the tenant as the co-signer`s “procedure distribution agent” and indicate that the co-signer or guarantor is not entitled to communications that could be served on the tenant or that have other rights for a tenant. Therefore, the landlord only has to send notifications or complaints to the tenant and does not need to personally communicate communications or complaints about the co-signer. It will generally be easier to serve the tenant and it is up to the tenant to inform the co-signer of communications and complaints filed with the co-signer. If the tenant does not notify the co-signer, the landlord can obtain a default judgment against the co-signer. Whether you are a landlord or a tenant, a co-signed contract is useful in rental situations when there is a question about the tenant`s financial situation. With the contract co-signed by a financially secure third party, the tenant and landlord have a guarantee that agrees to assume financial responsibility for the lease if the principal tenant cannot pay for any reason.
Fortunately, there is an alternative to a tenant`s refusal: securing a co-signer on the lease. The agreement should specify that the co-signer provides only a financial guarantee and has no right to rent or occupy.