Landlord W-9 Compliance | What Contractors Need to File 1099-NEC

Introduction

Landlord W-9 compliance is one of the most overlooked parts of rental property management. If you hire independent contractors like repair workers, gardeners, or handymen for your rental business and pay them $600 or more in a year, you must file a Form 1099-NEC with the IRS and provide a copy to the contractor.

The only way to do this correctly is by collecting a signed IRS Form W-9 from each contractor before you pay them. Failing to collect W-9s early often leads to last-minute panic at tax season, missed deductions, and even IRS penalties.

Why Landlords Need W-9s from Contractors

The IRS requires landlords and small business owners to file 1099-NECs for contractors earning $600+ annually. Without a W-9 on file, you may:

Lose the ability to deduct contractor payments.
Face IRS backup withholding requirements (24%).
Struggle to get correct information from contractors later.

Example: How Easy It Is to Miss the Rule

It’s common to hire a repair person early in the year for a $200 job. Later, you use them again for larger work, and by December your total paid exceeds $600. If you didn’t collect a W-9 upfront, you’re scrambling to find them at year-end—when many don’t return calls or emails.

That’s why best practice is to request a W-9 the first time you engage any contractor or service provider.

What Is IRS Form W-9?

IRS Form W-9 (Request for Taxpayer Identification Number and Certification) allows you to:

Obtain a contractor’s legal name, address, and tax ID (TIN/EIN).
Verify that you’ve complied with IRS reporting rules.
Keep proof that you collected correct information (in case the contractor provides false data).

The IRS expects you to retain W-9s for at least 3–4 years for audit readiness.

Best Practices for Landlords

Collect W-9s upfront: Don’t wait until payments exceed $600.
Apply to all vendors: Request from contractors, gardeners, cleaners, and repair services (unless incorporated).
Use automation tools: Platforms like GetW9 make it easy to request, collect, and securely store W-9s digitally.
Stay organized: Keep all W-9s in a central, secure location instead of email threads or paper folders.

FAQ

Q1. Do landlords need a W-9 from every contractor?
Yes, if you expect to pay them $600 or more in a calendar year and they are not incorporated.

Q2. What happens if I don’t collect a W-9?
You may lose your deduction for payments, be required to withhold 24% (backup withholding), or face penalties at tax time.

Q3. Should I collect W-9s from corporations?
Generally no, but certain corporations (e.g., attorneys) still require reporting.

Q4. When is the best time to collect W-9s?
Immediately—before or at the first payment. It avoids year-end stress.

Conclusion

For landlords, W-9s aren’t optional they’re essential. By collecting W-9s from contractors at the start, you avoid last-minute panic, protect your deductions, and stay compliant with IRS rules.

👉 Don’t wait until January. Automate W-9 collection today with GetW9 and focus on managing your rentals not chasing paperwork.