Assurant expands product offering to include commercial property

Risk management service provider Assurant has expanded its SureDeposit product, an alternative to security deposits, to commercial property owners, management companies and their tenants.

Previously only available in the residential market, the product will now enable commercial property managers to offer a surety bond payment as an alternative to a security deposit, which helps increase protection while also reducing tenant’s upfront office move-in costs.

As an alternative to requiring a full commercial security deposit, SureDeposit offers tenants the option of paying a one-time non-refundable payment, which is a fraction of the cost of security deposit, to enroll in the surety bond programme, according to the company. Under the programme, SureDeposit reimburses the property manager should the tenant not uphold the financial obligations in the lease agreement, including rent payment or returning the space in good condition, and handles the collection process with the tenant.

“We recognized the need among commercial property managers for increased loss protection, as well as for tenants - especially small businesses and startups – to have an alternative to large cash deposits,” said Steven Hein, president, multifamily housing, Assurant.

“SureDeposit allows commercial property managers to raise their minimum security deposit requirements to a more appropriate level. The program offers better loss protection, while providing flexibility and a low-cost solution so tenants can direct their cash back into their own business.”

Hein added that the product is also a great marketing tool for property managers. “Being able to advertise ‘no security deposit for qualified tenants’ can play an important role in attracting new lessees and helping increase occupancy,” he said.

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