Okay, this is going to be a bit of a long question and I appreciate whoever reads through and answers.
I live in an apartment - my parents are divorced and I receive $600 a month from my father (child support) that I use to pay most of my rent. My mother has co-signed for me twice before, although she is also currently renting (her and my stepfather own two businesses).
They decided to let my boyfriend and I move in together, and we found a great apartment. Problem is.. the leasing company will not let my mother co-sign because her name is on another lease (which has never been a problem before). My boyfriend's father, who has owned the same home for 14 years and makes upwards of $90,000 a year tried to co-sign for us, but they said it wouldn't work (he also owns his own business)!
Is this normal? Are all leasing companies going to turn my co-signers away like this?
2007-03-27 08:03:23 · 5 answers · asked by Delvala 5 in Business & Finance ➔ Renting & Real Estate
We HAVE to have a co-signer because in order to rent here (Richmond, VA; not sure if it's like this everywhere) you must make three times your rent (which we do not; we are both part-time college students).
2007-03-27 08:04:25 · update #1
I am a property manager in Virginia and do business in the Richmond market. A rent to income ratio of 1:3 is pretty much the standard in that area.
When evaluating a guarantor (co-signer) it is normal to consider their debt load and obligations (such as leases) to determine whether they have the means to assume another debt. Our company for instance, raises the threshold to 5:1 (income/rent) for guarantors, since they must continue to service their own obligations in addition to paying rent if it becomes necessary to ask them for payment.
It is reasonable to ask the renting agency the basis on which they have declined your guarantors. Perhaps your mother's debt load is high due to the other lease. Your stepfather is self employed, which has some bearing in terms of proof of income. We typically ask for last year's 1040 and Schedule C as proof.
If they both have spotless (or nearly so) credit and the income to rent ratio isn't excessive, you should press the landlord for an explanation as to why they aren't acceptable as guarantors. If the landlord refuses, contact consumer protection and the Better Business Bureau. You might also talk to someone at the Fair Housing office and request a copy of the landlord's tenant selection or qualification criteria to determine if you are being treated in a discriminatory way.
2007-03-27 08:42:14 · answer #1 · answered by njc_flhtc 4 · 0⤊ 0⤋
Wow. You're in a tough situation. I've never heard of a leasing company NOT accepting a co-signer. And I've never EVER heard of having to make three times your salary in order to rent an apartment. Is this just something within the leasing company you're working with or is this all of Richmond? (It's nice there, I like it).
I don't think all leasing companies would turn away co-signers. I would be up front with them and ask first thing.
2007-03-27 08:12:36 · answer #2 · answered by philygrl72 2 · 0⤊ 0⤋
I can only tell you what I know of my area which is Central FL. Yes most companies do want 3x the rent BUT in my case when I was younger didn't have a co-signer so was always okay with putting down and extra deposit. Almost all apartment complexes can work with you and it sounds like for whatever reason, this place you are trying to get approved for isn't interested in having you live there.
2007-03-27 08:13:14 · answer #3 · answered by ~*~*~*~*~*~*~*~ 6 · 0⤊ 0⤋
Wow. I read the whole thing. Wish I could help, but I don't live in your state. Good luck
2007-03-27 08:12:43 · answer #4 · answered by Baby Bloo 4 · 0⤊ 0⤋
Time to stand on you own so find one you can afford without outside help
2007-03-27 08:13:14 · answer #5 · answered by Gypsy Gal 6 · 0⤊ 0⤋