Nevada is the latest state to update its landlord tenant laws and formally recognize that security deposit alternatives in the form of a surety bond benefit both apartment renters and owners
Livingston, NJ, and Las Vegas, NV, (PRWEB) October 1, 2009
A new law that goes into effect today affirms that apartment landlords throughout the state of Nevada may offer a surety bond or a combination of a surety bond and other security money as an option in lieu of a traditional security deposit as required by the landlord. A.B. 512 revises provisions relating to security deposits for the rental of real property (BDR 10-921). Both a security deposit and a surety bond as a security deposit alternative provide for the protection of the landlord.
"Nevada is the latest state to update its landlord tenant laws and formally recognize that security deposit alternatives in the form of a surety bond benefit both apartment renters and owners," said Dan Rudd, CFO and co-founder of SureDeposit, the nation's leading provider of security deposit alternatives for the multifamily industry. "SureDeposit has been offering its surety bond program since 2001 in states nationwide and has already helped renters retain more than $750 million of their hard earned money that they have not had to sink into a traditional security deposit."
More than 100 apartment communities in Nevada already offer the SureDeposit program, including those under management by such leading real estate firms as USA Multifamily Management, Alliance Residential and Berkshire Property Advisors.
"The timing of this new provision is noteworthy because surety bonds as a security deposit alternative can greatly benefit both renters and landlords in the current economy," explained SureDeposit President Richard Schreiber. "Renters can dramatically lower their move-in costs at lease signing by opting to pay the lower cost surety bond premium instead of a larger, traditional cash security deposit which the landlord ties up in escrow for the duration of the lease term."
For example, in Nevada, for $500 worth of coverage to the apartment community against losses due to skipped rent or damages that exceed normal wear and tear, the resident only pays $87.50 for SureDeposit's surety bond premium as an alternative to the traditional security deposit.
"But this lower-cost alternative can also significantly reduce a property company's bad debt and improve its net operating income (NOI) in the process. This is because the surety bond better protects the owner against financial losses than would a traditional security deposit, while requiring the resident to comply with the terms of the lease," explained Schreiber. "At a time when property companies are also looking to attract more residents and improve their occupancy rates, security deposit alternatives such as SureDeposit can be a real win-win for the owner and renter alike."
For example, Misty Justice, a regional manager with Alliance Residential responsible for nearly 2,000 units in Nevada, has been offering SureDeposit for the last two and a half years. "As a leasing tool, it has been a real asset to people moving into our lease-ups because they can save a lot of money upfront if they choose the surety bond. We have found that the vast majority of people choose the bond," she said. "But just as important is the fact that we have recovered far more money that residents have owed at move-out with SureDeposit than we ever would have collected with a traditional security deposit. It has been a real boost to our bottom line."
SureDeposit's surety bond enhances a property owner's risk management while dramatically lowering a resident's move-in costs. With over one million units in more than 3,500 communities under agreement, SureDeposit is the nation's leading provider of alternatives to refundable security deposits for the multifamily industry. Founded in 2000, SureDeposit is headquartered in Livingston, New Jersey, and has regional offices in Arizona, California, Florida, Georgia, Illinois, Indiana, Maryland, Nevada, Rhode Island and Texas.
For more information, call 1-800-531-SURE (7873), or visit online at http://www.suredeposit.com.