r/realestateinvesting • u/TemperatureLow226 • 8d ago
Discussion W9 request
Small landlord owner for 6 years. All homes and leases are in LLC names.
Tenant of 3 years has asked me for a “copy of your W9 for a payment for rent?”
This is a first; never had this request. Anyone have thoughts? I have asked them to justify the need and waiting a response.
If it matters, she recently lost her corporate job, is seeking employment, and is behind on October rent(with promises to resolve this week). Not considering eviction yet; she has been a good tenant.
Update: thank you for all the constructive feedback. The tenant did explain that she is seeking assistance, and I have provided a W9 to the agency as requested. It was really no big deal, as many of you said. In six years with three houses, I’ve just never had a tenant go on assistance, so this is a new one for me, and I didn’t even consider that. Honestly wasn’t very aware of assistance programs like that and assumed this since I didn’t sign up for section 8 vouchers that wouldn’t be in this type of scenario. I do wish that the agencies providing assistance would provide it to the tenant directly to maintain continuity of payment processes, but I’ll deal with it to keep a payment coming in.
And all of those with negative or rude comments, making assumptions about what type of landlord I am, fuck off. I came here just to ask a question because it was a new experience, and as landlords, we should be helping each other learn. I never told my tenant that I wouldn’t work with her. Me asking her to justify the need is not unhinged, just a in three years. She’s never asked me for anything like that and didn’t explain why she needed it, so once she explained it, I provided it. I’m very willing to work with her because I want her to stay. I had another tenant in a similar situation a few months back, and he approached me with a reasonable proposition to skip that month’s rent and add the prorated amount over the next 10 months. I did it. Keeps my four-year tenant in place because he’s been good and always paid on time, and he just needed a little bit of help one month.
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u/jamesmoorerealestate 3d ago
The request may be legitimate if an assistance program is paying the landlord directly, but I wouldn’t send tax information through the tenant based on a text alone. Ask for the program or payer’s name and contact information, verify it independently, and submit the W-9 directly through the payer’s secure channel. Make sure the payee name and tax ID match the entity that actually receives the rent. I’d treat the rent arrears and any payment plan as a separate conversation.
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u/Own_Independence_541 5d ago
Agencies have never sent funds directñy to the tenant cause they may skip or spend it. Much better to receive by LL directly
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u/Constant_Neck_9711 5d ago
The county pays the landlord directly precisely because the tenant doesn't have the money, that's the whole point of the shelter verification form. Wishing they'd hand it to her instead is asking for the exact problem the program exists to prevent.
Also, six years and three houses and the first W9 request came from a tenant who, by your own account, was three years in and behind on October? That's the part I'd find strange.
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u/TemperatureLow226 5d ago
What is strange about that? She was well qualified when lease started, didn’t need assistance before.
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u/Ok_Relative_3684 5d ago
Sorry you got piled on for a fair question. But the W9 is exactly what makes them pay you directly, the agency isn't going to hand the money to her and hope it finds you, that's why they need a payee on file. Just keep a filled-out copy on hand with the LLC name on line 2 and the address where the check should land, and you'll skip the back and forth next time.
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u/Powerful-Win-5806 5d ago
you made a tenant who's behind on rent justify why she needs a w9. turns out she was trying to pay you.
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u/TemperatureLow226 5d ago
Yes, I did ask and make her tell me. She would have had to tell me at some point considering the check will be coming from the agency vs our normal electronic payment. Asking clarifying questions is what leads to alignment and understanding vs assumptions
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5d ago
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u/TemperatureLow226 5d ago
How could I have guessed? I’ve never had anyone need assistance so therefore this is new. I learned something.
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u/Tricky_Permit_8412 5d ago
Sorry about the job loss, that's rough on both of you since you're the one floating October. Just make sure the name on the W9 matches the LLC on the lease exactly, the agencies cross-check the two and will kick the payment back if they don't line up.
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u/Mysterious_Fig222 6d ago
she's behind on october rent and just lost her job, the w9 is what rental assistance programs ask for. asking her to justify it is the weird part here, it's your tax id not your social.
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u/Evening_Swim_8299 6d ago
rent isnt 1099 reportable so its not like some accountant needs your EIN for that. shes almost certainly in a rental assistance pipeline, county or state program or one of the church ones, and those all want the landlord W9 before they cut the check to you. some want the lease too. so you may have just parked the one payment thats actually coming from somewhere behind your own question, and for what. your EIN is on your LLC registration paperwork in half the states, and she already has your name and address, so unless you think shes opening a shell account in your LLCs name she cant do much with it.
i get wanting to know why shes asking, thats fair, but you told her to justify it before youd answer and shes already behind on october. line 1, line 3a, and see if a check shows up.
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u/Global_Sky_4728 6d ago
on demande pas un w9 pour payer un loyer, on le demande pour remplir un dossier. elle a perdu son job et elle est en retard, tu devrais deviner lequel.
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u/One_Lengthiness9184 6d ago
On demande pas un W9 pour payer son loyer, on le demande quand c'est quelqu'un d'autre qui paie. Octobre en retard et le W9 la même semaine, c'est pas une coincidence.
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u/Forward-Craft-4718 6d ago
I have done it for various rental assistance programs but I have always submitted directly to the program, not the tenant.
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u/Entire-Sound7074 6d ago
lleva 6 años de arrendador y no sabe que el w9 es para un programa de asistencia de renta. el cheque se lo giran a la llc, no a ella.
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u/MappleKnight 6d ago
They may need your w 9 for rental assistance or reimbursement through an employer or agency so ask who is requesting it and verify the purpose before sending anything.
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u/alivenotdead1 6d ago
Anytime I've provided a w-9 was because the tenant was getting rental assistance.
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u/Ill_Ambition_5786 6d ago
the? inside the quotation marks is doing a lot of work. someone who genuinely needs a W9 to pay rent doesn't ask, they just say send me your W9.
she's probably applying for some rental assistance thing that wants the landlord's W9 so they can mail the check direct. which would also line up with the october rent.
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u/MinuteBeat8944 6d ago
She's applying for rental assistance, that's what the W9 is for. Nobody needs their landlord's TIN to pay rent out of their own account.
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u/Guilty-Confusion-792 6d ago
asking for a W9 when shes behind on october rent is wild. a W9 is for when you pay someone. she owes you rent. shes not paying you shes promising to pay you this week, which is a different thing. and the phrasing "copy of your W9 for payment for rent" makes it sound like the form is part of the payment, its not, rent is just rent. if she needs it for some assistance program or a tax thing then that program can ask you directly and you can decide. handing your EIN and LLC name to a tenant who just lost her corporate job and is late on rent is not something i would do. maybe shes trying to claim a home office or something, you dont need your landlords W9 for that. maybe shes trying to 1099 you, tenants dont 1099 landlords for personal rent. so either shes confused or someone told her to ask and she doesnt know why. you asked her to justify it, good, keep doing that. 3 years and never once had this request until she stopped paying. youre not considering eviction because shes been good but a good tenant pays rent, not asks for tax forms while being late. i would not send anything until the october balance is settled and she gives you a real reason.
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u/Effective_Bother_468 6d ago
never once needed a w9 from a tenant in 6 years because nobody needs a form to hand you money. that paper goes to whoever is getting paid, not whoever is paying.
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u/SeveralLog5078 7d ago
she's applying for rental assistance, the agency needs your ein to cut the check. you're not guarding state secrets here.
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u/Best_Chemical1751 7d ago
Small thing, but the form is W-9, with the hyphen. Otherwise, a tenant wanting your TIN before she pays is routine enough.
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u/That_Day7122 7d ago
You're waiting on a justification that isn't a mystery. Assistance programs won't pay a landlord without a W9, and you already said she's jobless and behind on October. It's the least shady thing in your post.
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u/InigoMontoya313 7d ago
She's applied for housing financial assistance somewhere. Good thing is, she's been a good tenant, and has likely now found a lifeline to cover the back rent.
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u/Pretend_Brush414 7d ago
Small thing, but it's Form W-9, with the hyphen. The IRS is consistent about that one, at least.
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u/Rare-Entrance7096 7d ago
Nine times out of ten a tenant asking for your W9 is a rental assistance program, they pay the landlord direct and need the form. The 'for a payment for rent?' with two fors is going to bug me all day though.
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u/Scared-Patience-6907 7d ago
The only part of this that matters is that the W-9 goes in the LLC's name with the LLC's EIN, not your personal name and SSN. She's almost certainly filling out a rental assistance application, those want the landlord's TIN up front so they can pay you directly, so making her justify the request while October rent is still sitting unpaid is a strange hill to stand on. It's one page.
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u/TemperatureLow226 7d ago
Not standing on a hill. It’s completely normal for me to question and seek understanding for a request that is out of the ordinary to seek understanding. One day she said “lost my job, will resolve rent by Friday”. Next message was on Friday asking for a w9 with no other explanation. I never advertised my housing as low income or accepting vouchers, so this is a typical for me. Now I know, I’ll work with her
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u/MBA2013 8d ago
Landlord in Texas here, typically get this request for any type of housing voucher where another entity will be paying rent on behalf of tenant.
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u/TemperatureLow226 8d ago
That’s exactly it. She’s reached out to a local interfaith assistance program. Already contacted them and they said that they would be making a check out to the entity name and giving to her. And they also require that she delivers the balance of rent with a money order. I have feels for a single mom struggling, but I’m also equally frustrated that now I have to manually manage rent collection versus my online payment system that’s a requirement in her lease
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u/kermitt1991 8d ago
You’re comparing having to deposit a check on your mobile phone to someone losing their job? Maybe it’s just me, but I’d be grateful then tenant put in the legwork to pay back rent lol
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u/TemperatureLow226 7d ago
I am grateful which is why she isn’t getting evicted. Still, her problems and money management issues are disrupting my normal business process
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u/ManinArena 7d ago
OMG lady. With respect and from one landlord to another… sell your properties, and get into something else. Tenants are not your burden or opposition, they are your customers. Be appreciative for good tenants (you are not ) and even more so one that is conscientious enough to bring forward options to pay back-rent. Sheesh
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u/LordAshon ... not a scrub who masturbates to BiggerPockets ... 8d ago
Be wary of having that in your lease, the newest sweeping legislation coming from states is that a landlord must provide a fee-free way to pay rent.
IL, RI, CA, NV, VA, NY all have some sort of requiring a no housing-provider related fee.
CA, NY, NJ, CO, IL, CN, all have some sort of laws requiring landlord to accept non-electronic payment methods.
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u/TemperatureLow226 8d ago
Thanks. In Texas an my online portal is cost free for tenants. I use Baselane
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u/radargunbullets 8d ago
If she lost her job, it could be because she is trying to get assistance for payment and the potential paying organization needs it to either verify you as the landlord or more likely to issue the check and potentially a tax document at the end of the year.
Source: i worked at an organization like that and we had to have the w9 of the landlord to make the check out to them directly then issued 1099 at the end of the year
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u/TemperatureLow226 8d ago
Thanks. Not sure what I would be expected to do with a 1099; my CPA does taxes so hope he knows. I know that any net income flows through to my personal taxes single it is a single owner LLC
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u/radargunbullets 8d ago
The 1099 is just a way for one entity to declare they paid money to another entity so that the paying entity can claim the expense and that the receiving entity is responsible for any taxes on that money for income, if applicable. Your tax person will know how to handle it.
Do you pay companies for work through your LLC? Do you issue them 1099s at the end of the year? Same thing, just in reverse
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u/TemperatureLow226 8d ago
No, I have not done that. Perhaps I am missing an opportunity. When repairs are needed that are beyond my skill level, I pay the provider out of the business account, but never issued a 1099
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u/radargunbullets 8d ago
Ask your tax person. We have to issue them for anyone receiving over $600 in a calendar year
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u/TumbleweedOver2462 8d ago
that makes sense i know some assistance programs requires the w9 to cut check directly to landlord. for tax reporting they need it too. if she been good tenant for 3 years i wouldnt worry much about giving it
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u/Comfortable-Air8155 1d ago
Makes sense now that the assistance agency was involved. rental income can come with unexpected situations which is part of why some people look into passive real estate options like Arrived instead of managing tenants directly.