Hey friends, Nate with Keyrenter Property Management here. So I’ve been reflecting a little bit today on this year, 2020, some of the challenges, some of the opportunities that have come out of it, as well as what I want to accomplish this next year in 2021. And many of you I’m sure have had similar thoughts and you’ve been thinking, how can you make next year, even better than this! And I often think, how can I make today better than yesterday? A few things that have come to mind. And even some thoughts from a couple of my mentors. One of those is Mel Robbins. You may know she wrote the book, the Five Second Rule, and the other one is Darren Hardy, who was the founder and CEO of Success Magazine. He’s also a very influential coach and a mentor of mentors. He has a program coming out this year called the Hero’s Journey, which is all about improving ourselves as leaders, entrepreneurs, as people, husbands, wives, friends, etc.

What are the action items, the goals that I have in my heart and my mind, even on paper that are just not happening? And what’s creating the obstacles for me, why am I not accomplishing those? Have you had those thoughts? Do you have anything that you would like to accomplish that you’re just not making progress on that you’re spinning your wheels on?

So Mel talks about our brains and how our mind is set out to protect us from pain, from discomfort, from getting into situations that might create that imbalance in our lives. So what happens is our brains convince us to do other things rather than to take action in the direction of our goals. And Darren on Monday talked about the resistance, that our brains and our minds are working against us. And sometimes it’s like, you know, I need to do this today. Maybe it’s one of those calls or conversations you have to have with someone that’s uncomfortable or difficult. And he talks about how, oftentimes we find ourselves saying, you know what, I’m going to go onto Facebook for a little while, or I need to respond to these emails first, or do X, Y, and Z. And at the end of the day, we look back and we say, you know what…I never did that. I never made that call. I didn’t have that conversation. And that is the resistance that’s keeping us from taking action.

So what is the solution is I’m looking at my goals, the things I want to accomplish this next year. The solution that they both talk about Mel and Darren is to act before our brains can convince us otherwise. So Mel talks about the five seconds that we have before our brains start to influence our behavior. And when we have the thought, I need to do this, you start doing it and you start gaining a little bit of momentum. So for me, I want to break it down this next year. What are my big goals? What are the big things I want to accomplish? And then what are the micro steps to help me get towards those big goals and to start taking action today, before my brain takes over to accomplish those micro steps.

And so, as you’re looking at this, I hope that this is helpful. Have you experienced some of this yourself? I’m sure that you have, because you’re human just like me and we all have our struggles. We have our challenges. We have the many opportunities around us in this world. And sometimes we just got to get out of our own way. We’ve got to take the action that we need to take.

Take care, everybody.

Reference Material Mentioned:

DarrenDaily: https://go.darrenhardy.com/darrendaily/

The 5 Second Rule: https://melrobbins.com/the-5-second-rule/

The Hero’s Journey: https://go.darrenhardy.com/heros-journey/

When you have a property for rent, you’re likely seeking qualified tenants with proven track records. Unfortunately, we don’t live in a perfect world so some tenants may ask to use a co-signer. Should you allow for a cosigner on your Salt Lake City, UT rental property?

Like anything else in the world of property ownership, there are pros and cons to consider with cosigners. We are here to showcase the most important elements of cosigners and what it means for building wealth.

What is a Cosigner for a Salt Lake City Rental Property?

A cosigner for Salt Lake City, UT rental homes brings in a second person who is responsible for its terms. Any debts that are owed to you from the tenant are transferred to the cosigner in the event that they go missing.

When the lease agreement is negotiated, a cosigner will sign along with your tenant. This is recorded and dated for a binding contract. The cosigner must follow the obligations outlined in the lease.

There are several reasons why your tenant may want or need a cosigner for their lease, ranging from credit to low-income tenants.

Why Do Tenants Need a Cosigner?

Not all tenants need a cosigner, but these are some reasons why you might run into this situation:

• The tenant is young and does not have an established credit or rental history. This is when they will typically turn to mom or dad as a cosigner.
• The tenant may have a low credit score. This is potentially the result of spending beyond their means, but they could have also incurred significant debt from medical expenses or no other fault of their own.
• The tenant doesn’t have enough income to rent your property. The general rule of thumb is for the tenant to spend 30% of their monthly income on your rental payment.

Even though a cosigner is on the lease, this doesn’t necessarily mean they will live in the unit with your tenant. Some cosigners are roommates while others are parents or family members who do not live at your property.

What Are the Responsibilities of a Cosigner?

Once a cosigner signs on the dotted line, they have several responsibilities if the lease falls through with your tenant.

A cosigner has several responsibilities when it comes to your tenant’s lease. Some of these may include one or all of the below:

• Responsible to pay any missed payments on behalf of the tenant
• Responsible for paying toward any damages that the tenant left on your property, especially if it’s beyond normal wear and tear
• Responsible to see that the lease is carried out and its entirety, despite what ends up happening to your tenant

A cosigner has more skin in the game than just a signature on your lease agreement. If the cosigner refuses to pay or follow the agreements laid out in the lease, their credit may become damaged. Their credit is reported to the credit bureau just as you would do to your tenet.

Is It Ever a Good Idea to Allow a Cosigner?

A cosigner can be beneficial to you as a landlord as well as your tenant. Keep in mind that all tenants who require cosigners aren’t necessarily going to bail on your lease. There are plenty of honest people who need some extra help securing a rental property in Salt Lake City, and you can help bridge this gap by allowing a cosigner.

How to Protect Yourself with Cosigned Leases

As a landlord, you are most likely concerned about how you can stay protected when a cosigner is involved. The good news is that when you work with an expert property management company in Salt Lake City, this can be an entirely streamlined and stress-free experience.

Here are some ideas to ensure that this arrangement is beneficial to all parties involved:

Strong Lease Negotiations

Drawing up your own lease is never a good idea. It’s easy to overlook important yet small details. Keyrenter Property Management can help you draft a lease and conduct negotiations with tenants as well as cosigners. Being aware of all clauses in your lease can help avoid major problems and headaches down the road.

Client and Cosigner Background Checks

The lease is certainly important, but you can’t forget about background checks. A background check should be used on both your tenant and the cosigner. This involves checking background information including credit history, rental history, employment verification, and criminal background information.

Determine Your Dealbreakers

There are times when you will run a background check on a tenant or cosigner, and find information that is not to your liking. While no one is perfect, there are times when you can overlook a troubled past.

From there, you’ll need to decide what you are unable to overlook even with a cosigner. This might be something like a very poor rental history or a serious criminal background.

Ultimately, the landlord gets the final say-so if a cosigner can go on the lease. One of the biggest advantages is that co-signers can help fill vacancies when the market is tight.

How Can Keyrenter Salt Lake City Help?

Keyrenter Property Management Salt Lake City is a different kind of property management company. We keep landlords in the loop with our educational webinars and weekly updates on potential market issues. With our leasing guarantee, rest assured that we will find you high-quality tenants for your rental.

While we help you find the best tenant for your property, know that we have industry-leading low eviction rates. Our tenants are precisely vetted and qualified. In the event that there is a problematic tenant, we pay for the eviction out of our own pockets.

Find Your Best Tenants with Keyrenter Salt Lake City

With our Tenant Advantage Program, it’s no wonder why we attract some of the top tenants in Salt Lake City. If the tenant asks for a cosigner, we will work through the process with you and determine the best decision with each unique client.

Have questions about a cosigner or your Salt Lake City, UT rental home? Get in touch with us today to learn more.