Updated 3 months ago on . Most recent reply
Want to Preserve Cash?
A “surety bond” for utilities can be used in some locations, instead of paying a full deposit for utilities.
We had one property that was going to require a utility deposit of $62k. Instead, we got a surety bond for $4k.
With a surety bond, you pay a fraction (as little as 1–10%) for a bond. That leaves more money available for reserves/working capital.
Even if you already paid a deposit on a property, you can potentially still get a surety bond and get some cash sent back to you for the initial deposit you made.
And don’t forget when you sell, you might get a refund from the bond. You must cancel the bond (or ask the utility to release it), and the surety company may issue a partial refund—depending on how much of the term remains.
- Mark Kenney