Sure Deposit FAQ’s
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.
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.
How do I sign up?
SureDeposit is only available at participating communities. Once you accurately complete a SureDeposit application and pay the required one-time, non-refundable premium, you are automatically a SureDeposit client when your new lease is approved.
What happens at the end of my lease term?
After you pay your last month’s rent and honor the other conditions of your lease, you simply move out without any further obligations. If you have not fulfilled your commitments under the lease, the Surety must pay to reimburse the Property Owner and you (the resident) will be required to reimburse the surety company for damages, loss of rent and related expenses.
How long is the apartment building owner covered by this one premium that I am purchasing today?
Coverage is purchased for the benefit of the apartment community and is intended to remain in force for the duration of your tenancy. However, if your apartment community is sold, we cannot warrant that the bond will remain in force, and you may be required by the new owner to post a security deposit upon lease renewal in accordance with applicable landlord/tenant law.
What happens if I move to another Apartment in this Apartment Community?
Your SureDeposit premium can move with you to the new unit in this community provided both you and the Property Owner agree to do so. Similarly, it can be transferred with you to any other apartment community your Property Owner has enrolled in the SureDeposit program, as long as both you and the Property Owner agree to do so.
Are there any other costs for SureDeposit?
No – your onetime premium is all you pay, if you have fulfilled your lease obligations. If you have not fulfilled your lease obligations, and the Surety is required to pay them to the Property Owner on your behalf, you will be required to reimburse the Surety for damages, loss of rent and related expenses, such as legal and collections fees.
Do I get my premium back at the end of my lease?
No – your premium is non-refundable.
What happens if I owe rent, fees, or cause damage to my apartment upon move-out?
We (the Surety) will be obligated to pay your debt (only up to the bond coverage amount) to the Apartment Community and then we will collect a reimbursement for our payment to the Apartment Community from you. This is the essence of the financial guarantee that you are signing.
If I do owe fees, rent or damage expense, can I pay it directly to the Apartment Community?
Yes. That is the best thing to do. Once the outstanding monies are paid to the Apartment Community, you will have no obligation to the Surety.
Is there any additional Resident Screening Required to use SureDeposit?
SureDeposit relies on the screening performed by Leasing Staff in accordance with the credit policy established by the Property Company. Therefore, there is no additional screening or approval process required to enroll your residents in the SureDeposit program. However, to make the delivery of SureDeposit seamless to your leasing agents, and to take advantage of our rules based, risk-adjusted, online delivery we recommend you use one of our authorized online screening partners.
What if I have more questions about SureDeposit?
Please call us at 877-531-7873 or email us at help@SureDeposit.com.