Michigan Landlord/Tenant Security Deposit Bond
AmeriPro Surety Bonds | 844-589-9732
Landlord/Tenants and Security Deposits – Michigan
Landlords in Michigan are required to guarantee that deposits received from tenants are secured and can, in fact, be refunded to the tenant, if other conditions are met.
A surety bond allows the landlord to both meet his or her financial obligations to the tenant, and satisfy Michigan state law at the same time.
AmeriPro Surety Bonds offers this surety bond as both a first time bond and a renewal surety bond for those who have a bond with an upcoming expiration.
Michigan Landlord/Tenant Security Deposit Bond: The Amount Required
AmeriPro Surety Bonds offers the Michigan landlord/tenant security deposit bond for your compliance. While, no minimum amount is required (the premium will be a minimum of $100, or 2%, whichever is greater), to be approved by our agency, good credit is required. According to Michigan state law, the surety bond is to be for the full amount of all deposits from all tenants, up to $50,000.
Amounts which exceed $50,000 are subject to having a surety bond for 25% of that amount above $50,000.
Posting a surety bond allows you as a landlord to use the cash for any purposes that you want.
The Cost for the Purchase of this Surety Bond and Its Duration
The cost of the surety bond required, with a minimum amount of $5,000, will be determined by information provided by you on an application, and your credit score.
AmeriPro Surety Bonds utilizes a soft pull which will have no adverse affect on your credit ranking.
Applicants with good credit may pay as little as 2% annually for this bond; however, the amount that you may pay is subject to the conditions listed above and so may vary.
Once issued, the bond is active for one, and thereafter must be renewed.
The amount of surety bond you may be required to purchase may change with each year, presumably, and our agency will facilitate obtaining the required surety bond amount.
Michigan Landlord/Tenant Security Deposit Bond: Its Purpose
While the surety bond is required of you as landlord, its benefit is for your tenants.
The bond serves as a financial guarantee that deposits made with a landlord can and will be returned, if they rightfully should be returned to the tenant.
The bond’s existence allows tenants to file a claim against the bond, and if their assertions are credible, collect from the surety bond their security deposit.
And while the bond is for the tenant’s benefit, it is not an insurance policy. What this means for you as landlord is that should a claim be paid against your bond, you are required to reimburse the surety in full for all costs and fees involved in the payment of any settlement.
AmeriPro Surety Bonds is a surety bonds only agency which provides fiduciary, license and permit, contractor, and court (i.e. appeal bonds) throughout Michigan and nationwide.
We look forward to working with you to have your surety bond filed in a timely manner.
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