Noah Patel
When applying for a rental property, it is common for landlords to require all adults living in the property to be named in the lease and be subject to financial checks. This often involves each adult submitting a rental application and paying a fee to cover the cost of background and credit checks. In some cases, a co-applicant or co-signer may be added to the rental application to boost the primary applicant's financial profile. A co-applicant is jointly responsible for paying rent and signs the lease agreement, whereas a co-signer guarantees to cover the rent in the event that the primary tenant cannot but does not live on the property.
| Characteristics | Values |
|---|---|
| Co-applicant | An additional person added to the rental application and resulting lease agreement for an apartment |
| Co-applicant benefits | Boosts the application with their improved assets like income or a great credit score |
| Co-applicant drawbacks | Jointly signs and bears the financial responsibility for paying rent for the apartment for the entire lease term |
| Co-signer | A third-party person who signs a lease agreement along with the applicant but doesn't live on the property |
| Co-signer benefits | Guarantees they'll cover the rent in the event that the tenant fails in their responsibilities or falls behind on regular payments |
| Co-signer drawbacks | Landlords may prefer the stability of having someone co-sign if the applicant doesn't have a good credit score or a well-paying job |
| Application fees | Every adult on the lease has to pay a separate application fee |
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What You'll Learn
Co-applicants and co-signers
A co-applicant is an additional person added to the rental application and resulting lease agreement for an apartment. They jointly sign and bear the financial responsibility for paying rent for the apartment for the entire lease term. They share responsibility for fulfilling the lease terms, including paying rent and keeping the property in good condition. Both parties are equally liable for fulfilling the terms of the lease.
Co-applicants can be spouses or partners who combine their financial resources to meet rental qualifications, family members who decide to cohabitate and support each other financially, or roommates who agree to share a rental unit and its associated costs. It is important to choose a co-applicant with whom you have a trustworthy relationship, as both parties' credit will be impacted if they don't pay their share of the rent.
A co-signer, on the other hand, is a third-party person who signs a lease agreement along with the applicant but does not live on the property. They are like a backup, agreeing to step in if things go wrong. They guarantee that they will cover the rent if the tenant fails to fulfil their responsibilities. Co-signers are often family members or friends who help vouch for the applicant as a tenant.
When applying with a co-applicant or co-signer, each person must complete their own rental application and provide personal information, rental history, and employment history. The landlord will also run a background check and credit check on both individuals.
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Rental application fees
In some cases, applicants may pay the screening company directly instead of paying an application fee to the landlord or property manager. This direct payment covers the cost of the screening service, which may include a background check, credit check, and tenant screening report. These reports are essential for landlords to verify a tenant's identity, income, rental history, and creditworthiness.
The application fee may also cover other administrative expenses involved in the rental process, such as drafting and finalizing lease agreements, maintaining tenant records, and coordinating move-in logistics. These fees are typically non-refundable, regardless of whether the application is approved or denied. However, it's important to review the refund policies carefully, as there may be potential reimbursement options in certain circumstances.
In certain locations, such as New York City, there are regulations in place to protect renters from excessive fees. For example, application fees in NYC typically range from $50 to $100 per applicant, and landlords are restricted from charging more than this amount. Additionally, if a prospective tenant provides current copies of their background or credit check, the law states that the application fee must be waived.
It's worth noting that adding a co-applicant or co-signer to a rental application can sometimes influence these fees. A co-applicant is an additional person who applies for the rental property jointly with the primary applicant and shares equal financial responsibility for rent payments. On the other hand, a co-signer is a third-party who signs the lease agreement but typically doesn't live on the property. Both options can provide landlords with additional financial assurance and may result in reduced fees or security deposits.
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Eviction procedures
Firstly, it is important to note that the only legal way to evict a non-paying tenant is through a non-payment eviction proceeding in Housing Court. The landlord must notify the tenant that their rent is late and provide them with the balance. If the tenant does not pay the overdue rent within 14 days of receiving this written demand, the landlord may file a non-payment proceeding in Housing Court and serve papers on the tenant.
The tenant must respond to the petition by appearing in person at the Housing Court Clerk's office. The Clerk will then provide a court date, during which the tenant can present their defence to the Housing Court Judge. It is advisable for the tenant to consult an attorney during eviction proceedings.
If the tenant does not appear in court, the judge can grant a judgment of eviction without a trial. If the tenant appears in court and loses the case, they can appeal to a higher court if they believe the judge made a mistake. However, appeals are expensive and must be made quickly.
If the judge rules in favour of the landlord, they will issue a warrant for eviction and set the earliest date for the tenant to be evicted. If the tenant pays the judgment amount and court costs before the eviction takes place, the case will be dismissed, and the tenant will not be evicted.
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Rental assistance
If you are struggling to pay rent, there are several options for rental assistance that you can consider. Firstly, you can look into government-funded rental assistance programs. The US Department of the Treasury's Emergency Rental Assistance (ERA) program, for instance, provides financial assistance to eligible households facing eviction or struggling with rental payments. The program has two components: ERA1, which offers $25 billion in assistance, and ERA2, which provides $21.55 billion. These programs have been instrumental in preventing millions of evictions, particularly among low-income renters and renters of colour.
Additionally, you can explore the option of subsidized housing, where the government subsidizes rents for tenants with low incomes. Housing choice vouchers, also known as Section 8, can be used to pay for all or part of the rent in privately owned housing. These vouchers are typically available for families with low incomes, seniors, and people with disabilities. You can contact your local public housing agency to learn more about your eligibility for these vouchers.
Another possibility is to involve a co-applicant or co-signer on your lease. A co-applicant is a person who jointly signs the lease agreement with you and shares the financial responsibility for paying rent. They typically have a better credit score or financial stability, which can boost your application and reduce certain fees. A co-signer, on the other hand, is a third party who signs the lease agreement and guarantees to cover the rent in case of any default by the primary tenant. Co-signers usually don't live on the property but have the right to do so.
If you are facing eviction or struggling to pay your utility bills, you can also reach out to local organizations and charities for help. The Salvation Army, for example, provides emergency rent and utility assistance to families facing financial difficulties. Additionally, you can call 211 or search their website for rental help resources near you. Local government offices, such as your town hall or representative's office, may also have information about rental assistance programs in your area.
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Rent regulation
Rent Control
Rent control limits the price a landlord can charge a tenant for rent and also regulates the services the landlord must provide. Failure to provide these services may allow the tenant to receive a lower rent. Outside of New York City, the state government determines the maximum rents and rate increases, and owners may periodically apply for increases. In New York City, rent control is based on the Maximum Base Rent system, which establishes a maximum allowable rent for each unit. Every two years, the landlord may increase the rent up to a certain percentage until the Maximum Base Rent is reached.
Rent Stabilization
Rent stabilization sets maximum rates for annual rent increases and, like rent control, entitles tenants to receive required services from their landlords along with lease renewals. The rent guidelines board meets every year to determine how much the landlord can charge. Rent stabilization helps combat the housing crisis by ensuring some units remain affordable. In New York, almost half of all rental apartments are rent-stabilized. Rent-stabilized apartments are most often located in buildings containing six or more units, which were built before 1974.
Co-applicants and Co-signers
If a prospective tenant does not meet the income requirements to qualify for an apartment, they can bring in a co-applicant or co-signer. A co-applicant is an additional person added to the rental application and lease agreement, and they jointly bear the financial responsibility for paying rent. A co-signer, on the other hand, signs the lease agreement along with the applicant but does not live on the property. They guarantee that they will cover the rent if the tenant fails to do so.
Rental Assistance
For renters struggling to keep up with rent, state and local organizations may have programs that can help. Additionally, individuals can call 211 or search online for rental assistance resources in their area.
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Frequently asked questions
A co-applicant is an additional person you add to the rental application and resulting lease agreement for an apartment. They boost your application with their finances and credit score.
Having a co-applicant can help you save money. A good credit history can incentivize the landlord to reduce some fees like the security deposit. It also reduces stress and ensures you stay on good terms with the landlord.
Both the applicant and co-applicant are equally responsible for the apartment's costs and will need approval from the landlord. Having multiple applications can be costly, and landlords should accept or decline each application before accepting another application fee.
A co-signer is a third-party person who signs a lease agreement along with the applicant but doesn't live on the property. They guarantee that they'll cover the rent if the tenant fails to make payments.
