Can You Use EIN to Rent an Apartment? Here’s A Full Guide!

EIN is one of the three main tax identification numbers used in the US (the other two are SSN and ITIN). It’s a number that’s given to every business that’s registered in the US. And, because millions of businesses are registered in the US, we can safely assume there are also millions of unique EIN numbers. EIN numbers can be used for various purposes, from opening a business bank account to filing taxes and more. Now, we won’t focus too much on those “other things” that EIN can be used for and will instead use this article to answer a single important question: “Can I use my EIN to rent an apartment?”

But first, before we do that, let’s take a brief moment to review some basic information about EIN just to make sure we’re all on the same page.

Let’s start.

What Is EIN?

Employer Identification Number or EIN is a 9-digit tax identification number that is issued by the Internal Revenue Service (IRS). Unlike the two other tax identification numbers, SSN and ITIN, EIN is for businesses and other entities (e.g., LLCs) that operate or are registered in the United States. The IRS uses EIN as a way to identify companies for tax purposes. On the other hand, companies that have an EIN number can use it to:

• File tax federal returns
• Hire employees in the United States
• Make the process of getting various types of US loans much faster (e.g., Investment loans, Rental income loans, DSCR loans, etc.)
• Open a business bank account in the US
• Build a business credit history and score in the US (makes it easier to get business loans)
• Get different kinds of business permits 

Now, with the basics out of the way, let’s turn our focus to the main question of this article – Can you use EIN for apartment renting?

Need an EIN for your LLC or to rent an apartment? For a fee of $300, NRI can help you get an EIN.

Can I Use My EIN to Rent an Apartment?

The answer to this question is — absolutely YES! If you have opened an LLC in the US and have an EIN number, you can use it to rent an apartment. You can use EIN to rent an apartment for various reasons, including:

• A home-based business — If you plan to conduct business from home, if you work from home, or need to get an apartment for any type of business-related activities. 
• Creating a coworking space — If you need a dedicated workspace for you and a couple of other people, you can rent an apartment with an EIN number and use it as, essentially, an office. 
• Personal use — If you’re a foreigner who doesn’t have a Social Security Number (SSN), you can use EIN to rent an apartment for personal use. But be aware that not every landlord in the US will accept an EIN, so you might have to look around until you find the one that does. 

Use EIN for Apartment Renting: Top Benefits

Using an EIN number to rent an apartment offers various different benefits, including:

• Tax benefits — Using an EIN to rent an apartment can allow you, in certain situations, to deduct rent payments from your tax returns, effectively lowering your tax bill.
• Separating personal and business finances — When you use EIN for apartment renting, you’ll be essentially creating a separation between your personal and business finances. This will allow you to track business expenses more easily and make IRS audits easier to pass.
• Increases the credibility of your business — Using an EIN to rent an apartment can serve as a good way to increase the credibility of your business. 
• Protects your privacy — Renting an apartment with EIN protects your privacy, as you won’t need to show any additional information (like your SSN)
• Allows you to rent an apartment if you don’t have an SSN — To rent an apartment in the US, most landlords will require some sort of financial identification number, along with a form of ID. If you’re not a US citizen or a Green Card Holder and don’t have an SSN, you can instead use EIN to rent an apartment.

Can I Use My EIN to Rent an Apartment – Main Things to Consider

Here are some main things to consider before you use an EIN for apartment renting. 

Landlord Acceptance Rate 

While you can technically use EIN to rent an apartment, it’s important to note that not every landlord will go for that. EIN is a business identification number, and some landlords view businesses as riskier tenants when compared to individuals. Most landlords generally prefer tenants with an individual taxpayer number: ITIN (for nonresidents and foreigners) or an SSN (for US citizens and Green Card Holders).

Before signing a lease for an apartment, tenants usually perform a financial background check on their potential future tenants. This process is extremely common in the US, and it involves using a taxpayer identification number (SSN, ITIN, or EIN) to check the financial records and history of an individual (or, in the case of EIN, a business). And, finally, the reason why landlords prefer people with ITIN or SSN is that, in their view, it’s much more difficult to fake personal financial history than it is to fake the financial history of a business. 

But don’t let this discourage you from renting an apartment with EIN. The most recent data shows that around 30% of landlords in the US accept the use of EIN for apartment renting. Our advice is to — always check with landlords about their specific requirements. That way, if they don’t accept EIN, you’ll know that from the start and can keep on looking until you find a landlord that will allow you to use EIN for apartment renting. 

Documentation 

Apart from an EIN number, many landlords will ask to see additional documents as a way to mitigate risk for themselves and verify that your business is legitimate. The documents they might ask you to provide includes:

• Documentation that proves your identity (ID card, Passport, Driver’s Licence, etc.)
• Business License
• Article of incorporation
• Additional documents that show the names of all business owners
• Copy of business tax returns or other business financial documents 

The Extra Cost 

Only around a 3rd of US landlords will allow you to use EIN for apartment renting. Following the basic principles of the law of supply, this means that the prices for apartments go up. So, be prepared to pay extra if you use EIN to rent an apartment. Make sure to factor the potential for a price increase in your budget, but also, remember to always check with landlords first. Talk to them and inquire about the price and other requirements they have. If they see you’re honest and are not trying to scam them, there’s a big chance some will be willing to negotiate the price.

Taxes

We’ve already mentioned it above, but because it concerns taxes, it doesn’t hurt to do it again. If you use EIN for apartment renting, you might be eligible to deduct the cost of rent from your business taxes. If you want to learn whether you can do this, we advise you to talk to a professional. US tax laws are complicated, and even the smallest mistake can cost you a lot more in the long run.

Need tax advice? The NRI team includes CPAs specializing in working with international clients and helping them plan their US tax strategy. For this service, we charge a fixed fee of $400.

How to Rent an Apartment as a Business Owner With EIN: 4 Steps

If you choose to use EIN for apartment renting, consider doing the following steps:

1. Be Honest From the Start

If you intend on using an EIN to rent an apartment, make sure you tell that to any landlord you meet or get in contact with. Try to do this during the initial conversation to set clear expectations, but also because it’s the truth. Honesty is truly the best policy here. Why? The main reason why two-thirds of landlords don’t accept EIN is that they don’t know what it is or they don’t trust it enough. But they don’t have to if they trust and get to know you. 

2. Prepare Business Documents in Advance

Because your intention is to use EIN for apartment renting, there’s a high chance landlords will want to talk about your business and see some business documentation. So be sure to prepare any business documents that show the legitimacy of your business or that you deem relevant. The main goal here is to get landlords to trust you, so try to be as transparent and honest about your business as possible.

3. Have Everything in Writing

Approach the situation in an honest and transparent way, but expect the same from landlords. Make sure that all aspects of the rental process are documented! Keep records of all lease agreements, rental applications, or business documents you share with landlords as a precautionary measure. These will serve as a means to protect yourself and your business from any legal disputes that might arise in the future. It’s better to be safe than sorry.  

4. Talk to Professionals

Using an EIN to rent an apartment is not as straightforward of a process as it would be if you used an ITIN or SSN. Renting an apartment with your business identification number can also lead to some tax benefits; if you’re eligible for those, you don’t want to miss them. So, before you commit to anything and sign a lease, talk to professionals. Get all the legal and tax advice before renting an apartment with EIN.