Your Actual Exposure: $22,000
A $1,200/mo student lease doesn't create $1,200/mo in liability. It creates $22,000 in total exposure across rent, personal guaranty, restoration, and every other clause your landlord drafted to protect themselves — not you.
Where $22,000 Comes From
Remaining Rent$7,200
Parent Guaranty$7,200
Security Deposit$1,200
Damage Liability$3,000
Early Termination$2,400
Legal Fees$3,000
Total Exposure$22,000
What Most People Miss
The co-signer's exposure. Parents think they're helping their child get an apartment. They're actually personally guaranteeing all rent, all damages, and all legal fees for a property they can't control.
Key Risks in This Scenario
- Parent co-signer is fully personally liable for all obligations — including damage by student's guests
- Student housing leases often have joint-and-several liability among all roommates
- Graduation, transfer, or leave of absence don't terminate the lease
How to Reduce Your Exposure
- Read the guaranty scope — push to limit to unpaid rent only, not all lease obligations
- Include a graduation/transfer exit provision if the student leaves school mid-lease
Frequently Asked Questions
- What does a parent co-signer actually guarantee?
- Typically everything: unpaid rent, lease damages, property damage claims, and attorney fees. The co-signer has the same liability as the tenant — without any right to occupy the space.
- What happens if a student transfers schools mid-lease?
- Transfer doesn't terminate the lease. The student and co-signer remain liable for all remaining rent. Some states have military clauses for early exit, but educational transfer has no equivalent protection.
- Can a student sublease a college housing unit?
- Some student housing operators permit it with approval. Many don't. Without an approved sublease, the student continues owing rent even if they're no longer living there.
- What is the typical damage deposit for student housing?
- Usually 1-2 months rent. But actual damage liability is often much higher — student housing frequently sees end-of-year damage claims well beyond the deposit amount.
- Are co-signers notified if the lease enters default?
- Under the guaranty terms, the landlord should send notice to the guarantor. In practice, co-signers often learn about default when a demand letter arrives. Check the guaranty for notification requirements.