Surety bond for a lease?

[crisw]

I am entirely new to the concept of surety bonding.

We are looking for a product to protect us in the event of a default on a lease. We own a property that we would like to lease to a small business who will use the property for production of agricultural products. Both they and we would like a four-year lease. If they default on the lease at any time during this four years, we will be in trouble, as we will then have to scramble to find a new tenant so that we can continue to make our mortgage payments! Thus, we would like to guarante that they will fulfil the four-year obligation.

Ia a surety bond a possible protection for us? If it is not the best vehicle, what would be another possibility? Any information would be much appreciated.

[Admin]

crisw,

This is a common question, but unfortunately bonds to financially guarantee leases are a thing of the past. I am not sure what a good alternative would be. I suggest asking your attorney.

Sorry I couldn't be more of a help.