Finding the perfect apartment in a great location is the fun and easy part of renting. Understanding and signing the lease can be the stressful part. The logistics of a lease and rental agreement can be difficult to navigate, and it’s essential to fully understand what you’re signing before you dot your I’s and cross your T’s.
If you’ve signed your current lease with a co-signer and are now wondering how to remove a co-signer from a lease, here’s what you need to know and do to get the formal process started.
What is a co-signer?
Before we talk about how to remove a co-signer from a lease, let’s take a step back and explain what a co-signer is and what their obligations are. A co-signer, or rent guarantor, is a person who signs the rental agreement alongside the renter and agrees to pay the rent, damages and late fees if the renter is unable to make payments.
A co-signer is usually a close friend or family member who is willing to take on the financial and legal responsibilities of the lease. As a co-signer, it’s essential to understand that you are now on the line and legally bound through the length of the lease.
- Related article: Sample Letter: Co-Signer Agreement Contract
Why would you have a co-signer?
If you’re unable to qualify for a lease based on bad credit history, low income or unsteady work history, a co-signer can help you qualify to rent the apartment you’re interested in.
Because property managers want to rent to people who will pay the rent each month on time, having a co-signer on your lease is a sign of good faith and an extra layer of protection for the apartment manager and guarantees they will get paid.
8 steps to remove a co-signer from a lease
Removing a co-signer from a lease can be tricky. Remember, property managers require co-signers because they want to ensure they’ll get paid and rent guarantors provide that security. If you’re looking to remove the co-signer from your current lease, you’ll want to follow these steps closely.
1. Make sure both parties are in agreement
Whether you’re the renter who wants to remove the co-signer or the co-signer who wants to be removed from the lease, you’ll want to make sure both parties are on the same page. As the renter, you’ll want to make sure you’re financially stable and able to pay the bills each month without the help of the co-signer. If you’re the co-signer, you’ll want to make sure the renter knows your intentions before speaking with the property manager.
2. Read the lease thoroughly
Before meeting with the property owner, re-read your lease (small print included), so you have a thorough understanding of it. There may be stipulations about ending the lease early or removing the co-signer. While you can negotiate anything, you’ll want to have some knowledge ahead of time about the details in the lease.
3. Schedule a meeting with the property manager
Next, it’s time to schedule a meeting with the landlord to discuss your wishes and intentions. Find a time when the property manager, renter and co-signer can meet to discuss your options.
4. Prepare for the meeting
To remove a co-signer and prove to the property manager that you’ll be able to pay the rent and expenses for the duration of your lease, you’ll want to come prepared with a variety of documents showing your positive change in circumstances. Consider bringing any and all of these documents to show your open and candid about your financial situation:
- Recent bank statements showing on-time payments
- Improved credit score and updated credit report
- Pay stubs showing consistent earnings
- Proof of employment
5. Attend the meeting and discuss the desire to remove co-signer
As we mentioned earlier, removing a co-signer isn’t an easy task and there’s no guarantee the apartment owner will agree to your terms and requests. However, when you meet, have an honest discussion about your intentions, the reason why you want to remove the co-signer and how you’ll make good on the lease.
6. Ask to adjust the lease
There are a few options on how to remove the co-signer from the lease. First, the apartment manager may let you re-apply for the apartment and see if you qualify on your own. Another option is to have the leasing agent write an addendum to the current lease. This is a legal document that states the new terms of the lease, without a co-signer, that you’ll sign.
7. Sign the new lease
If the property manager is willing to remove the co-signer, you’ll be required to sign the new or updated lease. Before signing, make sure you read through it and fully understand your new responsibilities. As the co-signer, you’re now legally off the hook for any financial responsibilities.
8. Understand the length of the lease
In some cases, you won’t be able to negotiate or remove the co-signer from the lease. In that case, it’s important to understand that the co-signer is only responsible for the length of the lease, which is usually one year. At that point, the lease will end and the co-signer is no longer responsible unless they sign a new lease. If you’re looking to remove yourself from the lease but aren’t able to, just remember that it’s not a permanent contract and it will end.
Co-signers can cancel
Signing a lease as a co-signer is a big deal as the lease is legally binding and you’re the responsible party.
Because removing a co-signer can be a difficult, lengthy process, you’ll want to ensure you have everything in place before meeting with the property manager to discuss renegotiating the lease.
