Self-employed but cosigner on adult child lease

[tenkuky]

So I’m in an unusual situation, at least for me.
Currently self-employed, no steady paycheck coming in.
That’s not a concern, but suddenly adult child needs me as a cosigner on their rental lease.
In the past, they had a small part-time job and was showing that as evidence.
Now, without that, they’re asking for me to cosign. But I have no pay stubs either!
How have other self-employed parents handled this situation?
Should I just show last year’s 1099? bank statement?
I want to be prepared for what the landlord asks.
Never been in this situation before as I was fully employed when getting mortgages on past homes, current home fully paid off.

Thanks in advance!

[cranberrycrash]

When I was in a related situation, I did bring in a bank statement, and also offered to pay a larger security deposit or a few months rent up front.

[runner3081]

How have other self-employed parents handled this situation?

Would never do this unless prepared to pay for lease term.

[EnjoyIt]

How is your child planning to pay for this lease without a job?

[arcticpineapplecorp.]

In the past, they had a small part-time job and was showing that as evidence.
Now, without that, they’re asking for me to cosign.

this may be a dumb question, but without any income, how are they planning on paying the rent?

fyi, you should never cosign. Why?

You have no way of knowing whether the other person is paying as agreed, and by the time you figure it out, your credit is ruined.

there is ABSOLUTELY NO UPSIDE to cosigning for someone else.

It would be better for you to make the payments yourself and the other person reimburses you than you hope and pray the other person makes the payments so your credit isn't destroyed.

just say no.

but really, what's the plan for how the adult child will pay the rent if there's no income anymore?

[Jack FFR1846]

This isn't unusual and even if the parent becomes the "renter" on the lease, I remember back to being in college where 5 of us rented an apartment. All had parents co-sign. If a parent wanted to become the "renter", any and all are responsible for the rent so your own child could be paying just fine and the full rent is still not covered.

Perhaps simply have a conversation with the landlord and provide your contact info and ask that if there's any problems to contact you immediately.

[tenkuky]

How is your child planning to pay for this lease without a job?

OP here.
They resume their part time job in 2 months, and that more than adequately covers the rent. I'll help out with the education savings account for next 2 months.
It’s a stupid “ show 3 most current paystubs” rule and they last worked in November 2024 before taking a hiatus.
Apparently, the other roommates who also do not have consistent employment have to get a parent cosigner.
FYI, we are talking about college students living in an off-campus house and not some independent working adults

[exodusNH]

How is your child planning to pay for this lease without a job?

OP here.
They resume their part time job in 2 months, and that more than adequately covers the rent.
It’s a stupid “ show 3 most current paystubs” rule and they last worked in November 2024 before taking a hiatus.
Apparently, the other roommates who also do not have consistent employment have to get a parent cosigner.

In some cities, it's common for landlords to have the parents cosign.

Will you be responsible for the whole rent or just your child's portion?

I would be worried about cosigning simply because I wouldn't trust the roommates. But, this may be non-negotiable.

[tenkuky]

OP here.
They resume their part time job in 2 months, and that more than adequately covers the rent.
It’s a stupid “ show 3 most current paystubs” rule and they last worked in November 2024 before taking a hiatus.
Apparently, the other roommates who also do not have consistent employment have to get a parent cosigner.

.

In some cities, it's common for landlords to have the parents cosign.

Will you be responsible for the whole rent or just your child's portion?

I would be worried about cosigning simply because I wouldn't trust the roommates. But, this may be non-negotiable.

Just child's 1/5.
It's a "group lease" with each person signing their own section and responsible for their part

[exodusNH]

.

In some cities, it's common for landlords to have the parents cosign.

Will you be responsible for the whole rent or just your child's portion?

I would be worried about cosigning simply because I wouldn't trust the roommates. But, this may be non-negotiable.

Just child's 1/5.
It's a "group lease" with each person signing their own section and responsible for their part

Oh, that's much better. I'd just ask what they want for proof. I wouldn't have an issue cosigning only for my offspring -- just to keep them out of my house!

[EnjoyIt]

How is your child planning to pay for this lease without a job?

OP here.
They resume their part time job in 2 months, and that more than adequately covers the rent. I'll help out with the education savings account for next 2 months.
It’s a stupid “ show 3 most current paystubs” rule and they last worked in November 2024 before taking a hiatus.
Apparently, the other roommates who also do not have consistent employment have to get a parent cosigner.
FYI, we are talking about college students living in an off-campus house and not some independent working adults

That makes a huge difference in my book....lol.

I have been a 1099 employee for over a decade. I have been asked to show my previous year's 1040 (tax return in the past.)

[tenkuky]

Thank you!
I'll fish out my last year's tax return then.

[celia]

Thank you!
I'll fish out my last year's tax return then.

I'd ask the landlord if you can delete your SSN from all the pages. You could have 5 sets of "kid" eyes looking at it too. Of course, they need to learn what an income tax return looks like!

[WalkingBackToHouston]

So I’m in an unusual situation, at least for me.
Currently self-employed, no steady paycheck coming in.
That’s not a concern, but suddenly adult child needs me as a cosigner on their rental lease.
In the past, they had a small part-time job and was showing that as evidence.
Now, without that, they’re asking for me to cosign. But I have no pay stubs either!
How have other self-employed parents handled this situation?
Should I just show last year’s 1099? bank statement?
I want to be prepared for what the landlord asks.
Never been in this situation before as I was fully employed when getting mortgages on past homes, current home fully paid off.

Thanks in advance!

Cosigning covers more than just rent obligations. I would make sure I you understand my liability exposure and would be adequately insured. I would think your existing policies exclude liability assumed contractually ... which I think cosigning probably is contractually assumed liability.
When I've been asked for pay stubs in the past, I have gotten a letter from my brokerage stating that I have assets greater than $x. They will put whatever you want for x up to what you have. This has worked for me