Since 2011, property owners have largely enjoyed a ratio of high rents...Read more
Cosigners (also called Guarantors) are a great risk reduction tool that many landlords shy away from, but it's a proven tool in reducing risk and defaults.
Back in the day, 30% of rent was the general rule of thumb for how much of a person’s income should be spent on rent. That number is still a great goal,
Credit scores show us someone’s history - that's it. A much better way to review a prospective tenant is to analyze cash flow data: which is exactly what Naborly does. Studies suggest that the most effective way to reduce bias in credit scoring is to also include income verification and current cash flow analysis.
If your property is near a college or university and you aren't considering renting to students - you may be missing out on a rich tenant pool.
If your property is near a teaching hospital or long-term care facility, often there are international nurses and PSWs that don't have a credit history in this country. Their stable income with a guarantor however could make them an ideal tenant.
Do your research on the cosigner/guarantor. Are they a family member? Are they local?
Confirm you can contact the cosigner. With the Naborly application, your tenant can add a cosigner automatically and we'll reach out for you!
Go through the contract with the cosigner. It's best practice to ensure you have clearly stipulated in the lease the guarantor's responsibilties.
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