Bonds for Security Deposits
Is anyone using a surety bond for security deposits? As the property count grows and the deposits reach in the 10's of thousands, it seems like poor cashflow management to have all the cash just sitting in a separate account. Here's the technical language:
Security deposits from the tenant in residential dwelling units shall be deposited in a trust account with a licensed and federally insured depository institution or a trust institution authorized to do business in this State, or the landlord may, at the landlord's option, furnish a bond from an insurance company licensed to do business in North Carolina.
If you are using a bond...who did you purchase it through? I've asked my auto/gl company so we will see what they say.