"letter of Responsibility" in lieu of Security Deposit?

Can anybody give feedback on pros and cons of a company using a letter of responsibility instead of a check for the security deposit?

We are now seeing companies that we have rented units to for years wanting to keep their cash deposits instead of us holding it.

We are happy to avoid constantly depositing deposits and then reissuing deposit return checks. Damages are rare, the tenants are professionals and almost always things go well.

Any legal warnings on this? Any special wording needed?


How will you collect if there is damage?

Offer 2 rents: one lesser with a deposit and one higher without one.

As long as those companies (temporary medical workers agencies) are in business, they will need us for housing.

The largest company is based in Ohio; almost all the others are out-of-state too.

So I don’t really know how I would collect. The few times there were damages or a dirty unit they paid immediately.

I guess as long as they are solvent and in business they would be good for damages. I would like to get rid of the work of accepting and documenting a deposit, then issuing a check for it later.

I like the idea of the letter of responsibility but it’s the first time I have been presented with it.