Has Any One Started Using Surety Bonds Vs Sec Deposit/Move in fee

[Mark Ainley]

Morning All, 

Our property management company has been looking into collecting Surety Bonds vs Sec Deposits or Non Refundable Move in Fees(Chicago) and wondering if anyone can share their experience.  For our operation in Chicago we only collect a $250-$500 non refundable fee and we are looking for ways to better protect our landlords while staying competitive and out front of the competing units for rent.  In our suburb operation(non Chicago Address) we typically collect one months security deposit which if we can advertise move in costs are less we think we can get units leased quicker.

Our concerns are back end administration for filing claims and the willingness of surety companies to pay out on a claim?  Are there any geographic areas a surety company wont cover?  Any other pitfalls we are missing?

Any advice or experience is greatly appreciated.  

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