Looking for a way to hold onto your cash when setting up your security deposit?
203 Living has partnered with Sure Deposit to provide you with an attractive alternative. Simply pay a onetime non-refundable low cost premium, instead of a traditional security deposit.
Of course, you always have the option for a traditional security deposit as well.
It’s your choice.
What is a Surety Bond?
A surety bond is a written agreement that usually provides for monetary compensation in case the principal (see below for definition) fails to perform the acts as promised. A surety bond is a form of insurance that is created whenever one party guarantees performance of an obligation by another party. There are three parties to the agreement, as defined by the Surety Association of America.
- The principal is the party that undertakes the obligation (The Resident).
- The surety guarantees the obligation will be performed (SureDeposit).
- The obligee receives the benefit of the bond (The Property Owner).
Is Surety the same as Insurance?
No. An insurance policy promises to pay the insured person for any losses that are covered under the policy, e.g. accident, fire or death. Such losses are paid out of the combined pooling of all the policy premiums paid.
In surety, no losses are contemplated and the premium paid by the principal (Resident) is simply a service fee to the Surety for allowing its credit to be used. It is true that, if the Principal (Resident) fails to carry out the undertaking, the Surety must make good the loss to the Obligee (Property Owner). However, the Surety then has recourse to the Principal (Resident) for total reimbursement if and when possible.
In many respects, a surety underwriter is similar to a banker making a loan. In effect, both are lending their credit. The bankers want to make sure their loan will be repaid, therefore a co-signer is found by the applicant for the loan to ensure that the bank will not encounter a loss.
What is SureDeposit?
When a resident elects to use the SureDeposit program, SureDeposit issues a financial guarantee bond that replaces conventional security deposits. SureDeposit guarantees the performance of a resident according to the terms of a signed lease agreement. SureDeposit is based on a simple concept: instead of requiring a full security deposit, residents are offered the option of promising to return the unit in good condition, satisfy all rental and financial obligations by paying a modest one-time premium for a surety bond. If the resident does not meet their obligations, they are required to reimburse the Surety for the amount owed of their rental and financial obligations. The one-time premium payment covers you for the life of your residency, no matter how many years you stay in your apartment.