Home2015November (Page 2)

November 2015

apartments in MinnesotaAs the temperature continues to drop in Minnesota, maintaining a comfortable temperature indoors becomes a necessity. Residents know that it can get dangerously cold in the winter, making apartments in Minneapolis, St. Paul, and other Minnesota cities the places in which people will spend most of their time. Fortunately, a regulation called the Minnesota Cold Weather Rule makes it illegal for the city to turn off a renter’s utilities without at least seven days’ notice. This rule works well for people who pay for their utilities directly, but what about renters who don’t control their heat because the landlord takes care of it for them?

Understanding the Minnesota Cold Weather Rule

Before addressing this dilemma, it’s important to know a few basics about the Cold Weather Rule. The city must give a tenant seven days’ notice before shutting off their utilities, in order to give them time to get the appropriate sum of money together. Additionally, the rule offers decreased payment plans for those who realize they can’t afford the normal price of heat and other utilities.

co-signing an apartment leaseLet’s say a close friend comes to you and asks for help securing a two-bedroom apartment. She is able to pay all the deposits and has no problem adhering to the terms of the lease, but she has bad credit and so the landlord probably won’t accept her as a renter. So she’s asking you to cosign the lease with her. However, you’re worried about what cosigning could do to your credit. What would you do?

Whether you are considering cosigning a lease for a friend or a family member, here are some things you should know about how cosigning might affect your credit score.

What does cosigning mean?

“Cosigning” is exactly what it sounds like: you are signing a lease alongside another person. Because a lease is a contract guaranteeing that the signees will uphold the terms of the lease, both the renter and you will be responsible for adhering to those terms. More specifically, if you are cosigning, you are guaranteeing that the renter will pay all bills due to the apartment. If they can’t, it falls on you to meet the financial terms of the lease.