Should I cosign on an apartment for my 19 year old son?
My son works full time and theoretically can afford half the rent on an apartment he plans to lease with a friend. Because he has no credit, the landlord is requiring a co-signer. His friend's parents are basically out of the picture, my son's dad is refusing, so that leaves me. He lives with me now but I would like to see him on his own so he might soon realize that he needs an education or some training for a better job. Right now he pays his cell phone and car insurance responsibly each month but has lots of extra cash that he spends frivolously. He says he knows he has to change his life style and I know he won't purposely use my co-sign as an excuse not to pay rent, but I am still concerned. If he does default on the rent too many times he will have to break the lease. Will I then be responsible for the rent for the remainder of the time on the lease? Any other advice you smart people can give me I would truly appreciate. I'm hearing everything from NO NO NO to you have to help your child get started. Opinions?
Anonymous2010-09-05T09:35:14Z
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Yes, you are stating that you will pay his rent, the lease and for any cleaning or damages inflicted upon the party in the event that he does not pay for it himself.
It is up to you if you trust him to do the right thing or not.
You should not sign it if you can not afford to pay his rent or for his damages.
I would be concerned unless your son could afford the full amount of rent (in case the roommate bails). My parents cosigned a lease for me when I was 20 because my credit wasn't established and my income was relatively low. After the first year, I was able to sign a new lease solely in my name. I'm grateful for my parents help because it allowed me to rent a nicer place in a safer neighborhood (I was a young, single mother). Not all landlords take credit history into consideration, and it may be better for your son to find a place a bit cheaper and one where credit history isn't as important (just to protect you if his roommate bails and he cannot afford the full amount on his own). Sometimes you do have to help your children; however, have him apply for other apartments as well to see if another landlord would accept him without a cosigner. If you can afford to pay half of the rent for the remainder of the lease, then go ahead and cosign... if not, be more cautious (because unfortunately you could be put in that place). You would be responsible for the rent until the apartment was re-rented... not necessarily for the remainder of the lease. However, if there is any concern that your son and his friend may cause damage (since they're young... partying is a concern), you could be held responsible for damages.
If it were your son alone on the lease I would say definitely think about doing it. But since there is a roommate, well, he's a wild card, and I would not want to be responsible for his potential slacking off. 19 is still young and many people are still at home. I'd be inclined to insist he pay you rent- a % of his income, which you will put aside as an "apartment fund" and perhaps in 9 months or so he'll have established enough of a nest egg so that he can afford a studio apt without a roommate and you can co sign then and worry only about him, and not the other boy.
My son rents my condo from me. Something comes up every month that he doesn't have the money, and they're real things, like new tires and brakes, 2 hospital co-pays and the cat had to be put to sleep. They should be able to pay this amount of rent, but they have no reserves for extraordinary expenses. He was out of work for 3 years and his wife is disabled. I can afford to pay the mortgage with or without the rent, but that's not really the point.
In today's world, any job could be gone tomorrow. Does your son have some money saved for emergencies? He should have several months worth of expenses saved up. I know that's hard, but it's also prudent. What happens if the roommate leaves? Are you willing and able to pay the rent for the remainder of the lease if that happens? You have to consider not just half of the rent, but the whole thing. Co-signing seems like a nice thing to do, but you're saying to the creditor, "If he doesn't pay, I will," and in this case it would be if THEY don't pay.
My theory is this: Never co-sign for anything less than a kidney transplant.