Legal Question in Landlord & Tenant Law in Arizona
My daughter is wanting to rent her first apartment. However, she has really no credit but does have a steady income and has rented from some friends for the last 6 months. If she needs a guarantor on the rental agreement; how long will I be required to be listed? And if something does happen such as complaints about noise, etc what is my responsibility? I can't imagine this happening but should her lease by broken by the owner, what does that do to my credit? I understand I am responsible should she not pay rent or should she cause damage to the apartment.
1 Answer from Attorneys
If you are the guarantor, that means you are liable for payment of money if the lessee does not pay what is owed, and this liability may be limited by placing limitations in the guaranty that you agree and sign. You would be liable for the term of the lease and if the landlord terminates the lease for breach of the lease agreement, you would be liable for everything that the lessee is liable for, and doesn't pay. A guaranty usually requires the landlord to go after the tenant first, and then come after the guarantor thereafter.
If you sign the lease as a co-tenant, then the landlord can go directly to you for any payment due under the lease terms. Landlords usually do not report to the credit bureau. No bad credit will result if you pay on the guaranty as you are obligating yourself to do.
If your daughter needs credit, she should get a statement from her friends where she paid rent stating that she paid her rent and expenses on time and according to their agreement. That is a credit report.
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