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Should You Allow a Co-Signer For Your Phoenix Rental Home????

Should You Allow a Co-Signer For Your Phoenix Rental Home????

Most of the time the answer will be a very loud NO!  Co-signers by definition are individuals who guarantee rental payment however they will not be residing in the property.  Rental applicants need co-signers because they can't qualify for the home on their own usually due to financial limitations.  The result is you end up with a tenant who has little to no financial responsibility for the rent payment and therefore often times shows little to no responsibility to the upkeep of the property.  Typically this leads to increased issues with your HOA if you have one and moderate to sever damages when the tenant vacates.

There is one exception to this rule for Phoenix investment property owners whose property is near a University such as in the metro Phoenix area we have Arizona State University in Tempe.  Properties in this area almost always guarantee a co-signer because often times the applicant is a full time student with no verifiable income and usually the co-signer is the applicants parent (s). However be careful around some vocational schools such as in Phoenix we have MMI which is a Motorcycle school in which case many students are older than your "typical" college age.  Additionally, you will probably find students working on bikes in your garage and driveway creating again HOA issues and damages.

In conclusion, the best way to protect your Phoenix rental property is to say "NO" to co-signers!

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