Rent and applications
What is the difference between a guarantor and a cosigner on a lease?
Updated By the Housing Rocket moderators
Short answer
Both promise to pay if you do not. A cosigner usually signs the lease itself, has the same obligations as you and may have rights to live there. A guarantor signs a separate guarantee and only becomes responsible if you fail to pay rent or damages. Landlords often use the words interchangeably, so read what is actually signed.
Either way, the person is taking on real legal risk. If you stop paying, the landlord can pursue them for the rent and possibly for damages and fees, and it can affect their credit if the debt goes to collections.
Landlords usually expect a guarantor or cosigner to have good credit and to earn well above the standard you would need yourself, often four or five times the monthly rent, as a rule of thumb. Many require the person to live in the same country, and some require the same state.
Before anyone signs, both of you should check:
- Is the guarantee limited to this lease term, or does it continue through renewals?
- Does it cover the whole rent or only your share if you have roommates? Many cover the entire lease.
- What documents will the guarantor need to provide, such as tax returns or pay stubs?
Ask the landlord early how the guarantor applies: online, in person or with a notarized signature. A guarantor who is slow with paperwork is one of the most common reasons an approval stalls.
Want the whole picture? Read Renting Your First Apartment: Applications, Leases and Move-in Costs.