Things get tough for a renter. Rents are high, even in North Dakota, where the lowest average rent in the country is around $835. Rents are so high that most people are now what’s called “rent burdened,” meaning they spend 30 percent or more of their income on rent.
What is a lease guarantee?
It’s hard enough to hand over nearly a third of your salary each month just to keep a roof over your head. It’s made even harder by the increasing use of income requirements by landlords, which require that your rent payment be a third of your income or less. In short, income requirements mean that potential tenants must earn about three times the rent to qualify for a lease. That means that if your monthly rent is $1,000, your landlord will need proof that you earn at least $3,000 each month, or $36,000 per year.
This can be incredibly frustrating if you know you can afford the rent, but you’re just a little short of the income requirement. If you find yourself in a situation where a landlord won’t budge a little on that income requirement (or is concerned about some other aspect of your financial situation, like your credit score), what are your options?
One option would be a lease cosigner. A lease cosigner is someone who agrees to share the responsibility for paying your rent. Typically, a lease cosigner lives in the apartment with you and is listed on the lease with the stipulation that he or she is responsible for the rent if you don’t pay it (as opposed to a roommate who is only responsible for his or her share of the rent).
