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<\/p>\nAre your security deposit requirements costing you good renters?<\/p>\n
Sometimes, desirable renters are short on cash. But, do you really want to risk losing a good and potentially long-term resident because they can\u2019t pay a high security deposit before they move in?<\/p>\n
Imagine you show a unit to a young professional who is relocating to your area. They have a good new job and great credit along with excellent references. They\u2019re the kind of reliable resident you\u2019re looking for \u2014 and they\u2019re ready to sign a lease. But, they don\u2019t have enough cash to pay the security deposit you require.<\/p>\n
Do you have to let them walk away? As it turns out, you don\u2019t.<\/p>\n
You can let good renters move in for less money up front by allowing them to post surety bonds in place of a traditional cash deposit \u2014 and still ensure your properties are protected. Read on to learn more.<\/p>\n
What is a Surety Bond?<\/strong><\/p>\n Surety bonds are a form of insurance that constitute a contractual promise to meet security deposit requirements while taking less money up front from new renters. Renters simply pay a one-time, non-refundable bond premium that is typically less than 20% of a traditional security deposit, and the surety bond provider acts as a third-party guarantor up to the limits of the bond amount.<\/p>\n While relatively rare before the mortgage crisis of 2008-2010 when many families experienced job losses and home foreclosures and needed help getting into rentals, surety bonds have become more popular with landlords in recent years to help renters deal with move-in costs.<\/p>\n What are the Benefits?<\/strong><\/p>\n While renters are happy to keep more hard-earned money in their pockets and not worry about getting security deposits refunded, property staff are relieved of managing escrow accounts and processing deposit refunds \u2014 which also means saving banking fees and administrative costs.<\/p>\n Many property managers also find that offering a deposit alternative gives them an advantage in competitive rental markets.<\/p>\n Three Great Reasons to Accept Surety Bonds<\/strong><\/p>\n