Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
2y
The tenant wants to deduct rent or a portion of it, presumably as a business expense. Maybe they just heard a GC soundbite.
Since I run all my rentals through my mgt s-corp and get 1099'd fairly regularly and it's only a tax ID, I probably wouldn't care as long as they're not 'running a business' out of my residential only unit.
But I'd ask for clarity and would not provide my personal SS#. My guess is others that replied are the 'landlord' and receive rent payable to themselves so the tenant is essentially asking for their SS#. They rightly say no way.
Great context Steve. This is the first time I have heard of a tenant asking for a W9 and my first concern would be that they are running a business out of the unit or a pseudo business.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
2y
My lease prohibits running a business out of the rental unit, so I would ask them why they need a such a thing. Afterwards, I would decline that request and remind them of said lease provision.
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
2y
Is your tenant an individual or a company. Not a chance for an individual but I have before when I rented to an insurance relocation company. They told me up front that I would have to and made sense to me. It was a legit company so I felt fine with it however I would not be handing that information over to an individual.
@Adam Martin Thank you all for the many responses. I also read the link to the previous forum post. I will try to contact my bookkeeper tomorrow to also get her opinion. While I’m not totally opposed I have not branched out to having my business held under a TIN or an EIN and so in fact will not be providing my SS# if I do fill out the form.
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
2y
Alecia.
From an Insurance perspective, you definitely need to find out if they are running a business out of the unit/house. If they are, contact your agent to see if that would cause you to get cancelled or non-renewed (type of business, whether or not that they have clients there, any increase to the fire risk, etc., will be important considerations).
Review your lease to see if you have clauses that restrict the business use or allow you to charge back for an increase in insurance. Also, depending on the nature of the business, find out if you have to make any modifications based on zoning, fire code, or ADA...
Architect · Portland, OR · Member since 2023 · 66 posts · 39 votes
2y
For a commercial lease it is normally on the tenant to make modifications, get permits, etc. as needed. It certainly would not hurt to know what could be involved so that you could mention what your expectations are around this. A lease should probably to be restructured to address this issue as well as anything else iffy. Like . . . what if their seemingly innocent Etsy shop involved something that had them storing a bunch of flammable materials?!