Landlord Tenant Bonds

A Landlord Tenant Bond is a type of surety bond used as an alternative to a traditional cash security deposit in a residential or commercial lease. This bond protects the landlord against unpaid rent, property damage, or lease violations while allowing tenants to reduce upfront move-in costs.

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Why You Need a Landlord Tenant Bond

A Landlord Tenant Bond helps:

  • Reduce upfront move-in costs for tenants
  • Provide landlords with financial protection
  • Streamline leasing and approvals
  • Offer an alternative to cash security deposits
  • Improve affordability and access to housing

For landlords, the bond offers protection without holding tenant funds. For tenants, it preserves cash flow.

Landlord Tenant Bond FAQs

These are some of the most common questions asked about Landlord Tenant Bonds and how they work.

A Landlord Tenant Bond guarantees that a tenant will fulfill the financial obligations of a lease agreement. If the tenant fails to pay rent or causes damage beyond normal wear and tear, the landlord may file a claim against the bond.

Unlike a cash deposit, the bond does not tie up tenant funds. If a claim is paid, the tenant is responsible for reimbursing the surety.

The cost of a Landlord Tenant Bond is typically a small annual premium, often 5%–20% of the bond amount, depending on:

Bond amount (often equal to the security deposit)
Tenant’s credit and rental history
Lease term
For example, a $1,500 Landlord Tenant Bond may cost between $75 and $300 annually.

Landlord Tenant Bonds involve three parties:

Principal: The tenant
Obligee: The landlord or property owner
Surety: The bonding company
If a tenant defaults or causes damage, the landlord files a claim. The surety pays valid claims, and the tenant must reimburse the surety.

Landlord Tenant Bonds are commonly used by:

  • Residential tenants
  • Commercial tenants
  • Property managers
  • Apartment complexes
  • Landlords offering deposit alternatives

These bonds are often optional but may be required by landlords or property management companies.

Call us at 407-786-7770 or email us at [email protected]