Q: Today’s question comes from Gretchen. She writes: “My 18-year-old signed a lease for a college apartment. Each tenant gets an assigned room and bathroom and their own lease. Parents have the option to be added to the lease as guarantors. Should we do this?”
A: Thanks for your question, Gretchen. Being a guarantor on a lease is essentially the same thing as being a co-signer on a loan. If something goes wrong – in this case, if the rent isn’t paid – and you’re the guarantor, you’re responsible.
Often, parents will add their names as guarantors to boost their child’s chances of being approved for a lease, as many landlords require young tenants to have guarantors. It doesn’t sound like that’s the case with your situation, though.
At this point, if you and your husband were added as guarantors, it would mainly be a benefit to the landlord, as you would be legally responsible for rent payments if your child wasn’t making them. It’s worth noting too, that if you do add yourself as a guarantor, any non-payment could potentially harm your credit score.
My take? Since the lease has already been signed, I would decline to be added as a guarantor. Instead, I would keep in close communication with your child to ensure they are managing their money responsibly and that they have a rock-solid plan for being able to pay rent.
