Income verification is especially important. A co-signer may have an excellent credit score but already be carrying substantial financial obligations. Ideally, they should have sufficient income and assets to comfortably cover both their own expenses and the tenant's rent, if necessary. It can also be helpful to evaluate the relationship between the applicant and the co-signer. Parents commonly co- sign for college students and young professionals entering the rental market. In other situations, a friend or distant relative may volunteer to help. While the relationship alone should never determine your decision, it may provide insight into how committed the co-signer is likely to be if problems arise.
Pay particular attention to a co-signer’s:
Credit score and overall credit history
Debt-to-income ratio
Current employment and income stability
History of late payments or collections
Bankruptcies, judgments, or tax liens
Prior evictions or landlord disputes
Criminal background, where permitted by law
Before requesting a co-signer, landlords should establish clear written criteria for when one will be required. For example, a policy may state that a co-signer is needed when an applicant does not meet the property’s minimum income, credit, or rental history standards. Applying the same criteria consistently helps landlords avoid subjective decisions and reduces the risk of fair housing complaints. Landlords should also remember that Fair Housing laws apply throughout the screening process. Co- signers and guarantors must be evaluated using consistent criteria and cannot be treated differently based on protected characteristics such as race, color, religion, national origin, sex, familial status, or disability. When the screening process is complete, document your findings and maintain the same qualification standards you use for all applicants. Consistency helps reduce risk and supports fair, defensible leasing decisions.
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