Cosigning on an Apartment Lease: Liability Consequences

Cosigning on an apartment lease means you sign the lease and are potentially liable for damage to the premises or for legal claims against the apartment or leased premises. Cosigners on a lease can face the same liability consequences as anyone else on the lease, even if they do not reside on the property. Learn more about cosigner’s liability in our free legal guide below.

UPDATED: Jul 12, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 12, 2023

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UPDATED: Jul 12, 2023Fact Checked

Someone who “cosigns” a lease signs the lease. Even though the term “cosigner” sounds as it means you have a lesser role, or somehow only come into play as a back-up (like a “copilot”), in actually anyone who signs a lease is fully liable on the lease. That means that cosigners are potentially liable for damage to the premises, for example, or for legal claims against the apartment or leased premises; they are potential liable to the same extent as anyone else on the lease, even if the cosigner does not reside there. Therefore, to cosign a lease is to expose yourself to all the potential liability that being a tenant could expose you to.

Guaranteeing payment under a lease therefore limits your liability to “only” any monies due (such as the rent) under the lease. As a guarantor, your liability is limited to that which you specifically undertake or assume—in this case, the tenant’s monetary obligations to the landlord under the lease.

However, before guaranteeing (or cosigning), think very carefully about the responsibility you’re assuming. Suppose the tenant loses his or her job—and so can’t pay the rent—or worse, simply chooses to not pay? Are you prepared to pay for an apartment that’s not yours and you’re not using (and can you afford to do that)? If you are not prepared to take over the tenant’s obligations and pay on his or her behalf, then you should not guarantee (or cosign) a lease.

If you still want to guarantee or cosign, there are some ways you should consider to protect yourself:

1) Would the landlord accept a guarantee for less than the full rent? That would limit your exposure.

2) Does the tenant have any other assets in which they could give you a security interest (e.g. a car) to provide something to “cover” part of your obligations?

3) Have the tenant execute an agreement to you that if they default and you are forced to pay under the guarantee, you could collect from the tenant not just what they owe under the lease but also your own attorney’s fees or other costs in asserting your rights.

You should consult with an attorney to help you draft a guarantee, and to also consider what other steps you could put in place to protect yourself.

Case Studies: Liability Consequences of Cosigning on an Apartment Lease

Case Study 1: John’s Costly Decision

John, a caring father, decided to cosign on his daughter’s apartment lease to help her secure a place near her college campus. Although he didn’t reside in the apartment, John soon realized the full extent of his liability.

When his daughter’s roommate accidentally caused significant damage to the premises, the landlord held John equally responsible for the repair costs. John was forced to pay a substantial amount out of his own pocket, which significantly impacted his financial situation.

Case Study 2: Sarah’s Financial Strain

Sarah, a close friend of the main tenant, agreed to cosign on an apartment lease without fully understanding the potential consequences. Unfortunately, her friend lost their job and became unable to afford the rent.

As a cosigner, Sarah found herself responsible for the unpaid rent and faced legal action from the landlord. Despite not living in the apartment or benefiting from it, Sarah had to shoulder the financial burden and struggled to make ends meet.

Case Study 3: Mark’s Protective Measures

Mark carefully considered the implications before cosigning on his brother’s apartment lease. In order to protect himself, Mark negotiated a guarantee with the landlord that limited his exposure to a portion of the rent.

Additionally, he requested his brother provide collateral in the form of a car, which served as security for part of his obligations. Mark also had his brother sign an agreement stating that in the event of default, he could recover not only the owed rent but also his legal fees and other costs incurred.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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