If you’re currently searching for a new residence, or perhaps a new space to conduct business, you may be wondering if you can rent an apartment under your business name. Seeing how corporations are legal entities, they are allowed certain privileges to execute their company’s duties fully. But can you rent an apartment under your business name?
You can rent an apartment under your business under a few conditions. For one, as long as your corporation’s by-laws permit real estate leasing, it shouldn’t be a problem. It also depends on the conditions of the property you’re looking to rent and the landlord’s terms.
In this article, I’ll be going in-depth into how you can successfully rent an apartment under your business name, the benefits of doing this, as well as other factors you should be mindful of beforehand. If you’re interested in learning more about these topics, keep on reading.
How Can You Rent an Apartment Under Your Business Name?
As I stated above, it is possible to rent an apartment or any residency under your business name. Below, I’ll go over step by step how you can do this successfully and what information you’ll need to provide.
Search for a Decent Space
Whether this apartment will be used as a working space for your company or as temporary housing for traveling employees, you’ll want to investigate decent spaces thoroughly.
No matter what the apartment ends up being used for, it’s important to be mindful that it will represent your business’s integrity. Investing in a high-quality apartment space is a great way to show your employees and your clients that you’re appreciative of them and their continued loyalty.
Once you’ve located a few spaces that you’re interested in, engage in conversation with the correct people to get the answers you need. Ask questions about the surrounding area, as well as what the unit itself provides.
Contact Management About What the Apartment Will Be Used For
As I stated earlier, sometimes, certain landlords won’t allow you to rent an apartment under a business name unless they are met with a personal guarantee. Communicate with the management companies of the apartments you’re looking into and make sure they understand what use you’re looking to get out of their apartment space.
It’s ideal to do this first to save everyone from confusion and frustration later on. While most management companies and landlords will allow it, it’s important to be mindful that certain terms and conditions may need to be met beforehand.
As long as your landlord and the management company know that you’re interested in putting the apartment under a business name and what you plan on using the space for, it should make for smooth sailing down the line.
Make Appointments to See the Spaces You’re Considering
Once you’ve found a few spaces you’re interested in viewing that meet your guidelines, it’s time to make appointments to see these apartments in person to ensure they are what you’re looking for.
It’s important to ensure that the place has the appropriate amount of space and all components necessary to make running your business successful if you’re looking to run your business there.
If your goal is to house employees within this space temporarily, it’s vital to ensure that members of your team are comfortable and feel taken care of by their business while traveling.
These are just some of the components you should be mindful of when deciding on what apartment space you’ll end up renting. Not only will this apartment affect the way people view your business and brand, but it also represents how willing you are to take care of your traveling employees while they’re on the road.
Fill Out the Application for Your Chosen Apartment With Your Business Name
Once you’ve found the apartment space that’s ideal for you and your business, you can begin filling out the application.
When doing this, ensure that you’ve included all your business information, such as how the management company can get into contact with the right person and all your trusted business references.
Taking the time to do this shows the management companies that your business is in charge of all the affairs conducted within the apartment and other obligations such as rent. This also shows them exactly who is liable and who they can contact if they have any questions or concerns.
Factors to Be Mindful of When Renting an Apartment Under Your Business Name
Now that we’ve gone over how you can successfully rent an apartment under your business name let’s explore other factors you should be mindful of while considering whether you should keep an apartment under a business name.
Does Your Business Have Good Credit?
One important factor to be mindful of when making this kind of decision is whether your business has a decent credit history.
Seeing how corporations are recognized as individuals under the law, they are expected to have some form of credit history, similar to an actual individual when looking to rent a space. While it’s still possible to rent without the company having some credit history, your landlord may once again ask for a personal guarantee, such as your SSN.
If your business has a poor credit history, it’s important to be mindful of this factor as well when deciding on whether you should put your new apartment under your business name.
Your Business Must Remain Secondary Within the Apartment
If you plan on running your business in your newly rented apartment, there are zoning issues you should be aware of beforehand.
For one, your business can’t legally occupy more than 25% of the apartment. It’s also prohibited to sell products created within the apartment’s confines, so that’s something else to be mindful of if you plan on running a business full-time within the confines of this space.
It’s also important to know that you can’t advertise your business from outside of the apartment. There should be nothing visible to others to indicate that you’re running a business with your new rented space.
If you plan on solely renting an apartment under your business for other reasons and have no plans to conduct any business with your space, this is something you won’t have to worry about. If you plan on running your business full-time or even part-time within your new apartment space, these are all factors you’ll want to consider before signing the lease.
Everything You Do Reflects on the Business
I briefly discussed this factor before, but everything that happens that involves the apartment either reflects negatively or positively on the business.
If the rent is past due, or complaints begin to emerge from surrounding residents, all of these factors reflect how others view your business. This also affects how likely it will be for others to rent spaces to you in the future, especially if the word gets out that you’re a difficult tenant.
You should remember that certain actions, such as paying your rent late, reflect on your company and how you choose to do business. While individuals are still expected to follow protocol in terms of being a respectful and timely tenant, it’s even more so expected of businesses, seeing how you represent something bigger than just yourself.
In this article, I discussed whether you could rent an apartment under your business name. The answer is yes, you can, but there are factors you should be aware of before diving it this first.
Most management companies will allow companies to rent out apartments, as long as there is a personal guarantee involved. As for factors you should be mindful of, it’s important to remember that everything that happens that involves that apartment reflects your business.
Now that you have all the information, you need to start reaching out to the right people in your area today. You’ll be able to find the ideal apartment for you and your business in no time.