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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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I'm examining a new property to lease

Customer Question

I'm examining a new property to lease "commercial" for a startup business. the landlord ask for my financial information and gave me a financial statement to fill, where I have to disclose my assets and debt. This is all fine, I have nothing to hide
but one of the fields on the form is my SSN. I don't feel comfortable giving that.Also I was never informed that the landlord will pull my credit report so I don't see why the form is asking for my Social Security Number. Is it normal to give that in a commercial
lease?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Yes it is.

Be very careful here. If you are leasing property for an LLC or a Corp. most commercial landlords are going to require you to be a "personal guarantor" for the lease, so if there is a default, you are going to be personally liable for the lease (even though it is for a limited liability entity, the landlord is going to be entitled to pursue you as the personal guarantor).

It is possible to find landlords that are willing to forego this, but they are going to want substantial assurances for payment (and such landlords are few and far between - I wouldn't recommend it for any of my own clients with commercial property).

Customer: replied 1 year ago.
My business is s corporation and I am OK to be responsible for the full lease as a personal guarantor. My only issue is that I don't feel comfortable giving my social security number. Is it common for a tenant to give SSN to landlord in commercial lease?
Expert:  CalAttorney2 replied 1 year ago.

Yes, your landlord wants to evaluate your credit as part of this application.

They need to check your credit for how timely you are at paying your debts, how much outstanding credit you have, etc. to gauge their risk when they lease their property to you.

(I practice a lot of this area of law on both sides of the table, whenever a landlord comes to me with problem tenants and their property manager has failed to run credit checks or background checks of the tenant, it usually is grounds for a negligence suit against the manager (it is that important and that standard in the industry)).

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