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f you are asking, “Can I use my EIN to rent an apartment?”, you are one of the thousands of people who, especially if you are a business owner or have any tax IDs, wonder whether or not you can use your Employer Identification Number as a substitute for a Social Security Number when renting a home.
Short answer: no, you cannot use an EIN for apartment rental. Howbeit, there are some crucial nuances to be considered. This article explains what an EIN is, why most landlords require an SSN, and if there are any alternatives available.
What is an EIN?
An EIN is a unique number assigned by the Internal Revenue Service (IRS) which a business can get. It performs exactly like a social security number but is used specifically with businesses.
Key Takeaways
- Used by Businesses: Generally, EINs are mainly used for the purpose of submitting tax returns, opening bank accounts, and hiring employees.
- Issued by the IRS: This is an EIN issued by the IRS to record business activities and ensures tax compliance. Nonetheless, though an EIN is important in conducting any business, it should not be used as a number for personal identification purposes, which many landlords usually require when renting apartments.
Why Do Landlords Require an SSN?
During the rental application for an apartment, most property managers or landlords require you to provide your SSN. The idea is that your SSN is affiliated with personal credit history as well as background checks.
Why Is It Important?
- Credit Check: An owner will access your SSN to get a hold of your credit history to determine your creditworthiness. That way, the SSN gets attached to your credit reports that reveal whether you made payments on time, what you owe, and if it shows records of bankruptcy.
- Background Check: Some owners are running background checks to determine that you have no records of criminal activity or any other signs that may be warning flags about being a potential high-risk tenant.
- Identity Verification: The SSN verifies who you are, which is, after all, who you claim to be. An EIN does not contain any type of personal identification, so most landlords will not substitute it for an SSN.
Can You Ever Use an EIN for Anything When Renting?
In most cases, your EIN cannot substitute for your SSN on apartment applications, though there are exceptions. If you rent an apartment under a name besides your actual name, such as you’re renting under your business name, then you might be able to use your EIN.
That’s How It Might Work:
- Business Lease: If your business is renting the apartment or commercial space, the lease agreement might be in your company’s name. Here, the landlord may accept your EIN to verify the business’ financial status rather than your personal credit.
- Corporate Housing: Some landlord companies offering corporate housing may accept business information, including the EIN, but only for a short-term lease or temporary housing. However, in such cases as well, landlords may demand an SSN to establish the personal identity of the individual applicant signing the lease agreement, especially if you are the business owner.
What If You Don’t Have a Social Security Number?
If you do not have an SSN, either because you are not a U.S. citizen or for some other reason, then you may wonder what choice you have.
- Individual Taxpayer Identification Number (ITIN): If you are unable to obtain an SSN, you may have an ITIN. This is the tax number assigned to individuals not eligible for an SSN but who must file taxes within the U.S. Some landlords can accept a document displaying an ITIN in lieu of an SSN for use with credit or background checks.
- Co-Signer: The primary substitute, especially when you lack an SSN or credit history, is a co-signer, who is typically a person with a good credit history who agrees to be liable for the rent in the event that you fail to pay. This provides landlords with more security.
- Larger Security Deposit: In some cases, a landlord might rent to you without an SSN if you offer a larger security deposit, which lowers their risk in case of missed payments.
- Income and Employment Evidence: An example of steady income proof is some pay stubs or a letter from your employer. This sometimes convinces the landlord to rent to you without the SSN. This may assure the landlord that you can pay your rent every month.
Tips on Renting Without SSN
If you are unable to provide an SSN, here are steps you can take to be sure that you get an apartment:
- Be transparent: Explain to the landlord that you don’t have an SSN. Then, give a valid reason: it’s due either to the national status or use of an EIN for business. Honesty is rewarded; even it can create trust.
- Present additional paperwork: Bank statements, tax returns, or letters from your previous landlord which will give more evidence that you possess financial responsibility and stability.
- Look for Private Landlords: Large property management companies tend to keep bureaucratic standards when it comes to SSNs, but private landlords might be friendlier and open-minded with regards to some other type of identification.
Conclusion
Is it possible to rent an apartment using my EIN? In most cases, the answer is no. Most personal apartment rentals require an SSN for credit and background checks, which, of course, is not available with an EIN.
Exceptions abound, especially in scenarios that entail renting under a business name or one of the following: there is no cause to panic when you do not have an SSN. You could use your ITIN in lieu of your SSN.
You can ask for a co-signer, increase the security deposit amount, or provide proof of income. There is little one can achieve in terms of communication and clarity that will work against the interests of your landlord.
Maybe, by explaining your circumstances and giving alternative proof, you may be able to find your dream place home.
For further assistance with EIN applications, check out our EIN page. Also, you can check for more information on the IRS.
Want to know more about the process? Throw your questions in the comments below!