Ask an Agent: How many roommates should be on the lease?
In this week's 'Ask an Agent' column, the experts at The Agency--a tech-savvy brokerage that gives buyers and renters access to the same database of listings used by the city's real estate agents, and pays their agents bonuses for client satisfaction--tackle a question that often crops up for renters with roommates: at the end of the day, who's going to put their names on the lease (and their credit on the line)?
Q: I'm apartment hunting with a few roommates. Is it better to put all our names on the lease so we share equal responsibility, or have just one or two people sign on, even if we then have to find guarantors because their incomes aren't high enough?
The other issue is that guarantors must make 80 times the monthly rent, while tenants are only required to pool their resources together to make 40 times the monthly rent. With guarantors, it will mean that fewer people will be required to make more money, which can amount to quite a bit in a 3+ bedroom apartment. In addition, there are fewer 3+ bedroom listings in NYC's inventory and requiring multiple guarantors to be on the lease may limit your search because some management companies will not accept multiple guarantors on a single lease." - Anne Richmond, Real Estate Specialist
Let's use an example of four parents acting as guarantors of four kids. If only two parents are going to be co-signing, then they may not want to be responsible for the two other kids if, let's say, a party gets crazy and they throw a refrigerator out a window! The best case scenario is if you can qualify on your own as roommates without guarantors as roommates. It'll just make things easier on you paperwork-wise, and make you stronger candidates when applying.” - Michael DeSena, Real Estate Specialist
"It's extremely important that all roommates and guarantors are on the same page before signing a lease. Landlords typically require all the necessary paperwork from all roommates and guarantors on the lease. If one or more guarantors are involved, landlords will again require the same paperwork from them. While this is more work for both parties, it gives the landlord the ability to look at each roommate and guarantor to cover the monthly rent.
Even if you have a guarantor who could sign on behalf of everyone, certain things should happen prior to the lease signing. Each roommate should have a guarantor in mind. All of the guarantors should have a clear understanding of the lease and responsibilities. It is highly recommended that you have a lawyer draw up a contract, so each party is protected. The same would apply for multiple guarantors. That way if one roommate is unable to pay rent each month, it won't fall on that one guarantor that signed the lease. Having a lawyer put a contract in place between the guarantors will provide security to each individual party.” - Pat Lehman, Real Estate Specialist
Give The Agency a try if you're looking for an apartment in NYC!
The Agency is a technology-enabled real estate brokerage that is the refreshingly simple way for New Yorkers to buy, sell and rent apartments.
Q: I'm apartment hunting with a few roommates. Is it better to put all our names on the lease so we share equal responsibility, or have just one or two people sign on, even if we then have to find guarantors because their incomes aren't high enough?
In this week's 'Ask an Agent' column, the experts at TripleMint--a tech-savvy brokerage that gives buyers and renters access to the same database of listings used by the city's real estate agents, and pays their agents bonuses for client satisfaction--tackle a question that often crops up for renters with roommates: at the end of the day, who's going to put their names on the lease (and their credit on the line)?
Q: I'm apartment hunting with a few roommates. Is it better to put all our names on the lease so we share equal responsibility, or have just one or two people sign on, even if we then have to find guarantors because their incomes aren't high enough?
The other issue is that guarantors must make 80 times the monthly rent, while tenants are only required to pool their resources together to make 40 times the monthly rent. With guarantors, it will mean that fewer people will be required to make more money, which can amount to quite a bit in a 3+ bedroom apartment. In addition, there are fewer 3+ bedroom listings in NYC's inventory and requiring multiple guarantors to be on the lease may limit your search because some management companies will not accept multiple guarantors on a single lease." - Anne Richmond, Real Estate Specialist
Let's use an example of four parents acting as guarantors of four kids. If only two parents are going to be co-signing, then they may not want to be responsible for the two other kids if, let's say, a party gets crazy and they throw a refrigerator out a window! The best case scenario is if you can qualify on your own as roommates without guarantors as roommates. It'll just make things easier on you paperwork-wise, and make you stronger candidates when applying.” - Michael DeSena, Real Estate Specialist
"It's extremely important that all roommates and guarantors are on the same page before signing a lease. Landlords typically require all the necessary paperwork from all roommates and guarantors on the lease. If one or more guarantors are involved, landlords will again require the same paperwork from them. While this is more work for both parties, it gives the landlord the ability to look at each roommate and guarantor to cover the monthly rent.
Even if you have a guarantor who could sign on behalf of everyone, certain things should happen prior to the lease signing. Each roommate should have a guarantor in mind. All of the guarantors should have a clear understanding of the lease and responsibilities. It is highly recommended that you have a lawyer draw up a contract, so each party is protected. The same would apply for multiple guarantors. That way if one roommate is unable to pay rent each month, it won't fall on that one guarantor that signed the lease. Having a lawyer put a contract in place between the guarantors will provide security to each individual party.” - Pat Lehman, Real Estate Specialist
Give TripleMint a try if you're looking for an apartment in NYC!
TripleMint is a technology-enabled real estate brokerage that is the refreshingly simple way for New Yorkers to buy, sell and rent apartments.