How to safeguard lease agreements with tenants using different last names?

Question

I am a landlord of a small family commercial retail space considering a potential tenant application. The applicant has two last names: one on state documents like their driver's license and US passport (which they claim is their birth last name), and another on years of IRS tax filings and LLC business filings. They mentioned no legal name change was made, but they've been using the second last name regularly. We plan to use a personal guarantee form with the name on their government ID. What safeguards can we incorporate to protect ourselves in case of future eviction issues due to these name discrepancies? We have verified his credit history, but we are unsure how to structure a clause in the lease agreement to address name or identity issues. We have no prior experience with tenants having different names on legal and financial documents, and we intend to offer a three-year lease with an option to renew. Should we proceed with signing him, or is this risky?

Shawn R. Jackson · Answer

On the assumption that you want to bind "all" tenants and individuals occupying the space, you will want all names and any "aliases" that they may be using. One of several "focus points" you will want as the landlord in the lease, along with any personal guarantees ... is the accurate identification of all names being used along with your inserted copies of their photo identifications ... also with some research on the individuals to explore why or how there is a discrepancy in the presentation of their names and identification. Does this make sense to you?

James L. Arrasmith · Answer

Your concern regarding the tenant's different last names on government identification versus tax/business filings is valid and requires proper documentation in your lease agreement. To protect your interests, you should include an "Also Known As" (AKA) clause in the lease that explicitly identifies the tenant by both names, establishing a legal connection between these identities. Additionally, have the tenant sign an affidavit confirming both names refer to the same individual, and require notarized signatures on all documents including the personal guarantee form. 
 
The lease should clearly state that any misrepresentation of identity constitutes a material breach of the agreement, giving you grounds for termination if necessary. You might also consider requesting additional documentation such as a written explanation of the name discrepancy, business formation documents showing the relationship between the individual and the LLC, and potentially a higher security deposit to mitigate risk. Having proper documentation of the tenant's identity in multiple forms helps establish a paper trail that would be valuable in any potential legal proceedings. 
 
This situation presents moderate risk but can be managed with proper documentation. The key is transparency and thorough documentation of the tenant's dual identities throughout all lease documents. We recommend consulting with a real estate attorney to review your specific lease agreement and personal guarantee form before finalizing. Many businesses operate with partners or owners using various names for cultural, personal, or business reasons, and with proper safeguards, you can proceed with reasonable confidence while protecting your property interests.

Q: How to safeguard lease agreements with tenants using different last names?