Why modern surety bonds are the best alternative to security deposits

Traditional security deposits are outdated and inefficient. They can be cost-prohibitive for renters, they’re a hassle for properties to manage, and they often slow down the leasing process.

Surety bonds can be a great solution—but you may have heard about some downsides to using them as a replacement for security deposits. 

We agree.  

With the traditional model, surety bonds aren’t an ideal solution. That’s why we reinvented them for modern renters. 

We’re confident that these modern surety bonds are the best option for eliminating traditional security deposits and lowering move-in costs for renters. Here’s why:

Some surety bonds require properties to “pool” premiums, then draw from that pool to cover damage and rent loss. But if a property’s pool “dries up,” (because of an excessive amount or damage of missed rent), they can be left without coverage and forced to eat the cost. 

With modern surety bonds like Jetty’s, that’s no longer the case. We never use pooling, so there’s no risk that our Partners will run out of funds. Instead, we’re backed by Farmers Insurance Group, and we pay out claims in an average of three to four days.

Traditional surety bonds often have lengthy signup and approval processes. This can delay lease signings and have a negative impact on lead to lease conversion rates. 

That’s why when we built our signup process, we made sure it was fast, easy, and user-friendly. Signing up for Jetty takes less than two minutes, and it’s mobile-friendly—meaning that residents can purchase their policies on their smartphones, right in the leasing office.

Many deposit alternatives are designed to only provide coverage up to a standard deposit amount. That amount might be enough for the most qualified renters, but can leave owners without the protection they need when dealing with conditional approvals. 

With modern surety bonds, coverage amounts can be increased or decreased according to the risk profile of the renter. This flexibility not only lets properties get the protection they want, but also ensures that qualified applicants aren’t forced to pay for coverage they don’t need.