Young America Blog » October 2013
The Parent Guarantee Form
What Is a Parent Guarantee Form?
When I started working at Young America I had no idea what a parent guarantee form was, I assumed it was just some sheet of paper that your parents signed to help you out financially. Little did I know that it had a much bigger purpose than that. The Parent Guarantee Form (or “PG Form”) gets sent home to your parents or guardians once the lease you sign gets processed. Since it is mandatory this year, they are expected to fill out the form and send it back to the office so we can file that with the lease.
What is the purpose?
The PG form has a much bigger purpose than most people think. The PG form in short helps to individualize a lease that may have multiple roommates on it. By sending in the form it separates the liability from you and your roommates and prevents you from being stuck in a financial situation that is not your responsibility.
Is there a catch?
The main thing to know is that ALL roommates must turn in this form in order for it to be effective. So if you want to be insulated from your roommates financially, it is wise to make sure all of your roommates and yourself turn in this form as soon as possible. Since it is mandatory this year to turn in these forms you have to or else the lease could be voidable. Then again, why wouldn’t you want to turn in the PG form if all it does is benefit you?
How does it benefit you?
The PG Form benefits you by helping to separate the liability of a joint lease. If all of your roommates were to turn in these forms, you would be safe from having to deal with your roommate’s portion of the lease. For example, if roommate A did not make his rent payments then roommate B would not have to be worried that it would fall back on him or her because they all had the forms turned in.
What do you do if you are not comfortable sending a SSN in the mail?
We frequently get calls to the office from parents concerned about sending in their Social Security number in the mail on the form. There are two ways you could avoid doing just that! A parent or guardian could simply call us with their number so when we received it in the mail we could write it on their for them to make sure that their personal information did not get in the wrong hands. Or they have the option of sending in a scanned copy of their state I.D. This can be done via email, fax, or mail!