Property management solutions provider Assurant has announced its newest property management product, FlexDeposit, which will provide property managers with an alternative to traditional security deposit systems in rental properties.

According to Assurant, the new system provides “the benefits of a surety bond without a claims pool,” with lower initial costs, lower deposit risks, and a streamlined claims and collections process. Once integrated into the leasing process, the FlexDeposit system provides incoming residents with a risk-based security deposit fee, rather than a traditional fixed rate, and does not utilize property-level pooling.

As a result, Assurant notes that many FlexDeposit users are receiving lower rates than they might have in a traditional system. This allows property managers to attract residents for whom a traditional deposit may be cost-prohibitive.

“FlexDeposit gives property managers another alternative to attract new residents and take more risk out of the equation,” says Suzette Lesane, vice president of product strategy for multifamily housing at Assurant. “FlexDeposit guarantees fast payment up to the full bond amount. It is the industry’s only deposit solution with integrated collections, so our team of multifamily debt recovery experts will pursue any overages. This reduces collections burdens for property managers.”

When integrated with Assurant Recovery Solutions, the FlexDeposit system can minimize the administrative and compliance issues associated with handling cash deposits and reduce the risks associated with rising resident move-out balances.

The service is currently available in 41 states and soon will launch nationwide.