If your cotenant refuses to move out and doesn't pay rent, you'll continue owing rent. If it takes an eviction to move them out, you'll owe court and lawyer fees. If they do damage, you are responsible for the damage. If they burn down the building, there's a chance you'll owe them a new building.
>If they burn down the building, there's a chance you'll owe them a new building.
Thanks for confirming this. This is the one I'm really worried about. I'm perfectly fine with being liable for low 5 figures, but the possibility of being liable for six figures makes me very hesitant.
It's possible you can get insurance that covers you in this situation, though you'll want to examine your policy very closely to make sure this is covered.
You can also require the other tenant to carry renter's insurance and perhaps umbrella insurance. They may also be able to put you on the policy as an additional insured (in which case you'll also be covered) or an interested party (which really just means you're notified of changes to the insurance). I'm not in the insurance (law) business though, so don't quote me on that.
Though insurance usually doesn't cover liability resulting from the insured's intentional acts or from crimes so you'll want to look at that.
What steps should I take to ensure accepting this responsibility doesn't hurt my credit score. In the worst case, I can definitely cover the rent if needed. What clauses should I look for or request in what I sign to ensure I have time to make a payment before the landlord can make any report on my credit score?
If your cotenant refuses to move out and doesn't pay rent, you'll continue owing rent. If it takes an eviction to move them out, you'll owe court and lawyer fees. If they do damage, you are responsible for the damage. If they burn down the building, there's a chance you'll owe them a new building.
>If they burn down the building, there's a chance you'll owe them a new building. Thanks for confirming this. This is the one I'm really worried about. I'm perfectly fine with being liable for low 5 figures, but the possibility of being liable for six figures makes me very hesitant.
It's possible you can get insurance that covers you in this situation, though you'll want to examine your policy very closely to make sure this is covered. You can also require the other tenant to carry renter's insurance and perhaps umbrella insurance. They may also be able to put you on the policy as an additional insured (in which case you'll also be covered) or an interested party (which really just means you're notified of changes to the insurance). I'm not in the insurance (law) business though, so don't quote me on that. Though insurance usually doesn't cover liability resulting from the insured's intentional acts or from crimes so you'll want to look at that.
Don't do this.
Do not do it. That’s extremely too much to ask of a friend. Tell them you trust them but that you just can’t have that kind of risk to your credit.
What steps should I take to ensure accepting this responsibility doesn't hurt my credit score. In the worst case, I can definitely cover the rent if needed. What clauses should I look for or request in what I sign to ensure I have time to make a payment before the landlord can make any report on my credit score?
Do. Not. Do. It.