A Surety Bond has the same exact function as a Security Deposit, only it comes with a few unique benefits to Residents and Owners.
In place of the traditional cash Security Deposit, we offer qualifying Residents the ability to purchase a Surety Bond instead.
There are 2 unique benefits that Surety Bonds offer:
- Residents don’t need to submit as much money upfront when moving into a home, reducing the barriers to Move-In and ultimately speeding up the leasing process.
- Surety Bonds typically offer greater coverage to Owners for Resident-caused damage or unpaid rent than traditional Security Deposits
For a home that rents for $1,000, the Resident may have submitted an additional $1,000 for a traditional Security Deposit upon moving in. When a Resident selects a Surety Bond, however, the coverage amount would typically be a multiple of 1x, 2x, or 3x the monthly rent depending on their credit score. Most often, Great Jones Residents have coverage of 2x or 3x the monthly rent.
While the cost of the Surety Bond itself is non-refundable for the Resident, the amount the Resident must pay through monthly installments is significantly less than what one might pay for up-front with a traditional Security Deposit.
Returning to the above example, the cost of a Surety Bond that provides 2x the monthly rent (or $2,000) in coverage for the Resident would cost the Resident approximately $10-20 per month, allowing the Resident to purchase more coverage for the Owner’s property at a reduced upfront price.
If the Resident does not pay their rent or damage to the property is found to be Resident-caused at lease-end, the Surety Bond covers the expenses up to the limit of 1x, 2x, or 3x the monthly rent.