Do You Need a Cosigner For Your Apartment? How it Works and What to Expect

Renting an apartment can be tough if your financial background doesn’t meet a landlord’s requirements. A cosigner can help by guaranteeing rent payments, giving landlords that extra security. This can be especially helpful if you’re renting in a competitive market, such as an apartment in New York, or if you’re applying to a luxury complex, like many apartments in San Fransico. Whether you’re a first-time renter, have a low credit score, or just need extra support, here’s what to know about cosigning and how it works.

What is a cosigner for an apartment?

A cosigner is someone who signs your lease and shares responsibility for your rent payments. If you can’t pay, the cosigner steps in financially and is held equally accountable for the rent. In many ways, a cosigner is treated the same as a cotenant, with equal rights to the apartment.

While a cosigner can be a roommate or partner living in the apartment, they could also be someone living elsewhere who simply agrees to take on financial responsibility if needed.

A cosigner provides an extra layer of security for landlords, ensuring that rent will be paid even if the primary tenant faces financial difficulties. Many landlords require a cosigner when a tenant’s financial history does not meet the leasing criteria, such as low credit, insufficient income, or limited rental history. By adding a cosigner, applicants increase their chances of rental approval in competitive markets.

Deciding between renting or buying your next home? Explore your options.

Compare the costs of renting vs buying and find a lender to secure your mortgage.

Deciding between renting or buying your next home?

Compare the costs of renting vs buying and find a lender to secure your mortgage.

Co-signer requirements for an apartment

Not everyone qualifies as an apartment cosigner. Landlords set strict criteria to ensure a cosigner is financially stable and capable of covering rent if the tenant cannot. These requirements typically fall into two categories: basic qualifications and additional financial criteria.

Basic co-signer requirements for an apartment (almost always required):

• Must be at least 18 years old (some landlords require 21+)
• Good to excellent credit score (typically 670+, though some landlords require 720+)
• Steady income with proof of employment or financial resources
• Willingness to sign a legally binding lease agreement

Additional requirements (varies by landlord):

• Higher income threshold: Many landlords require cosigners to earn 3 to 5 times the monthly rent
• Low debt-to-income ratio (DTI): Preferably below 40%, ensuring they can take on additional financial obligations if necessary
• U.S. citizenship or permanent residency: Some landlords require a U.S.-based cosigner for legal enforceability
• Homeownership or rental history: Some landlords prefer cosigners who own property or have a strong rental background
• Employment verification: A letter from an employer or recent tax returns may be required, especially for self-employed cosigners

Understanding these cosigner requirements upfront can help tenants secure a qualified cosigner and boost their chances of approval. If a personal cosigner isn’t an option, third-party guarantor services may be an alternative option. Keep in mind that cosigner rules vary by location and landlord, so research local requirements before moving, for example, what’s required for an apartment in San Diego may differ from an apartment in Dallas.

What’s the difference between a cosigner and a guarantor?

The terms “cosigner” and “guarantor” are often used interchangeably, but they have key differences. 

Cosigner: Shares full responsibility for rent throughout the lease and has the same rights as a tenant, including access to the apartment. If you miss a payment, they must cover it.

Guarantor: Only steps in if you fail to pay rent. They have no tenant rights or access to the unit.

Despite these differences, both cosigners and guarantors share the risk of financial consequences. If you miss a payment, both can face damage to their credit score. They also have the legal right to sue you for unpaid rent or, in some cases, other financial damages like credit harm.

Why would you need a cosigner for an apartment?

There are several reasons why a renter might need a cosigner:

1. Limited rental history: First-time renters, like college students, often struggle to secure an apartment without a solid rental reference. In this case, a cosigner can serve as a substitute to provide the landlord with the assurance they need.
2. Poor or no credit: If you have a low credit score or no credit history, landlords may be hesitant to approve your application. The minimum credit score to rent an apartment is typically around 630, but this can vary depending on the property. If your score is low due to missed payments or high credit card debt, landlords may view this as a red flag. A cosigner with a stronger credit history can ease these concerns.
3. Past evictions or bankruptcy: A past eviction or bankruptcy can significantly impact your credit score and make it harder to rent an apartment. Even if your credit has since improved, landlords may be reluctant to approve you without the added security of a cosigner.
4. High rent-to-income ratio: If your rent is more than 30% of your monthly income, landlords may require a cosigner to ensure that the rent will still be paid if your financial situation changes.

If you’re dealing with one or more of these issues, a cosigner can be a practical solution. With time, effort, and a solid plan, you can get your financial situation on track and make your next rental application smoother.

How to get a cosigner for an apartment

Start by asking a parent, guardian, or close family member or friend—someone trustworthy who understands the responsibility. Keep in mind that a cosigner has legal access to your lease, even if they don’t live there, and you’ll need to be comfortable discussing your finances with them.

Before asking, be prepared to answer questions like:

• How much money do you have in savings?
• How do you plan to make your payment every month?
• Do you have a budget?
• What will you do if you can’t make your payment?
• How will you pay me back if I need to cover some or all of a rent payment for you?

When searching for a cosigner, be upfront about what’s required. Before they agree, provide them with details on credit and income requirements, potential financial risks, and the responsibilities they’ll be taking on. 

Can you hire a cosigner and how much does it cost?

While you can’t technically hire a personal cosigner, you can pay for a guarantor service. These services are provided by independent third-party companies, known as institutional or professional guarantors. In exchange for their help, you’ll typically pay between 75% and 110% of one month’s rent upfront. Rates can vary depending on your location and the specific guarantor company you choose.

However, using a guarantor service comes with risks. If you miss rent, the company will cover the payment but will still hold you responsible for repayment, potentially leading to debt or legal action if you fail to pay.

What happens if you’re denied an apartment with a cosigner?

If your application is denied, you may still have options. Consider offering a larger security deposit, prepaying rent, or negotiating other terms to reassure the landlord. If they choose another applicant, reassess why you needed a cosigner—if your income was too low, look for a more affordable rental; if credit was the issue, offering a higher deposit or building your credit could improve future applications.

Steps to cosigning for an apartment rental

Adding a cosigner to your lease is typically a straightforward process, though steps may vary based on local laws and landlord preferences. Here’s a general guideline to help you navigate the process:

Step 1: Confirm cosigner policy with the apartment complex or landord
Before moving forward, check with your landlord or property manager to confirm if cosigners are allowed. Some landlords may not work with cosigners, so it’s important to get confirmation early in the process.

Step 2: Choose a cosigner
Find a financially responsible person you trust to cosign the lease. This person should be someone you feel comfortable communicating with, as they’ll be equally responsible for the rental payments.

Step 3: Cosigner application and documentation
Have your cosigner submit the necessary paperwork to the landlord. This usually includes:

• A completed rental application
• Proof of income (e.g., pay stubs, bank statements)
• A credit check
• Criminal background check (if required)

Step 4: Sign the lease agreement
If the landlord approves your application, both you and your cosigner will need to sign the lease. Depending on the landlord’s preference and local laws, your cosigner may sign the same lease or a separate cosigner agreement.

Step 5: Submit initial payments
Upon signing the lease, you’ll typically need to pay a security deposit, the first month’s rent, and possibly the last month’s rent. If you’re renting with pets, a pet deposit may also be required.

Step 6: Move into your new apartment
After the lease is signed and payments are made, you can move into your new apartment. Don’t forget to transfer utilities into your name if required.

Step 7: Pay rent on time
Once you’re settled, make sure to pay your rent on time each month. If you encounter any financial difficulties, communicate with your cosigner ahead of the due date. Maintaining open communication is key to a positive relationship with your cosigner.

FAQs about apartment cosigners

What credit score does a cosigner need?

According to Experian, a cosigner needs a credit score of 670 or higher. However, credit score requirements are often left up to the landlord, so your landlord could require your cosigner to have a higher credit score. On the other hand, if you work with a cosigner who barely makes the cut, you can lose out to another applicant who has a stronger application.

Does a cosigner have rights to the property?

While a cosigner might not be considered a primary tenant, they can have equal rights to access the property. In many places a cosigner and a cotenant are treated the same, so always double-check your local laws. You can also make an agreement with your cosigner about property access and more, which is one more reason to work with someone you trust.

Does a cosigner need to be present for signing the apartment lease agreement?

A cosigner can be present for the lease signing or may provide a signature from somewhere else electronically. Most of the time, cosigners sign their paperwork via email. In some cases, cosigners may need to have one or more documents notarized. 

Can a cosigner terminate a lease?

Generally, no. A cosigner cannot terminate a lease unless the lease has an early termination clause. You may be able to work out a deal with the landlord depending on the circumstances and your landlord. In either case, you should expect to either pay a termination fee or manage the monthly rent until the end of the lease term.

Can a cosigner be removed from the lease?

In most cases, a cosigner cannot be removed from the lease until the lease term ends or until the tenant qualifies to take on full responsibility for the lease. However, some landlords may allow for a cosigner to be released early if certain conditions are met, such as the tenant proving their ability to pay rent independently over time. Always check with the landlord for specific terms related to cosigner removal.

Does cosigning for an apartment affect your credit?

If you’re cosigning on an apartment, there’s a good chance your credit won’t be affected. Most landlords and property managers don’t report rental payments, even late ones, to credit bureaus. So long as you or the person you cosign for keeps up on rental payments, you shouldn’t have any issues. The biggest vulnerability to your credit score is if the tenant is evicted because you or the person you cosigned for stopped paying the rent.

Does cosigning a lease affect getting a mortgage?

If you’re a cosigner for an apartment, this could potentially affect your mortgage borrowing capabilities. Many lenders will count the rental payment amount as if it were a debt payment. In other words, the rental amount will count against your debt-to-income ratio (DTI). 

A higher DTI means you could be approved for a smaller amount than you would if you didn’t cosign a lease or your lender could require you to put more money down. The interest rate you’re approved for can also be affected by cosigning on a lease, as people with a higher DTI tend to pay more in interest. 

The bottom line on having a cosigner for an apartment

A cosigner can be an asset on your rental application if you’re having trouble getting an apartment on your own. Working with a cosigner is fairly common, so don’t be discouraged if you need one. But, don’t forget to weigh your alternatives, such as:

• Renting with a roommate
• Choosing a cheaper apartment
• Subletting from someone who already has a lease