Starting with an existing subscriber base, Converge has experienced strong demand for the surety in Broward, Dade and Palm Beach counties where the insurance covers about 8,000 apartments. Orlando has 5,000 units covered. The surety bonds also cover about 9,500 apartment units in North Carolina (5,000 units in Charlotte) and another 5,000 throughout Georgia and South Carolina.

Florida accounts for only part of the success of the SureDeposit surety program. The plan enables apartment owners to charge tenants a reduced deposit fee but still maintain security over the property in the event of damage.

"Our customers are finding this is a great risk-management tool that attracts residents but still gives them the coverage they need to protect themselves," Davis tells GlobeSt.com. "It allows them to increase the pool of applicants, and that is creating a very strong level of interest among property owners."

As a part of the company's development strategy, Davis and partners Dan Rudd and Stuart Litwin learned about the Tenant Security Deposit Bond Program that Bankers Insurance marketed through its team of insurance agents. Through a one-time fee, the tenant pays the apartment landlord a fraction of the rental deposit, while the bond covers any damages the owner might assess.

It became apparent to both companies during the meeting last May, however, that each could profit from a partnership that paired the marketing and real estate background of the Converge partners with the insurance company's underwriting strength.

"We did a little bit of due diligence on them as I'm sure they did on us," Paul DiFrancesco, Bankers Insurance senior vice president in charge of product management, tells GlobeSt.com. "They're a bunch of bright people who came to us with a marketing plan and a premise with an answer to our marketing problem. While we had success selling at the individual level through our insurance agents, we ultimately needed someone who knew the real estate industry."

The success of the partnership is proven in the contracts they've signed. Customers now include organizations such as Property Counselors Management Group, the Chicago-based multifamily property manager company, which has expanded operations into Southwest Florida; and Associated Estates Realty Corp., the Cleveland-based owner-manager of 32,000 apartment units in 14 states.

"We are seeing a very strong level of interest from property owners across the board," Davies said. "We now had a dedicated marketing staff working nationwide. We've been out using our contacts, and we've done some marketing at the trade shows to make our presence known."

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New Jersey Firm Grows Bonded Surety Plan in Southeast for Apartment Owners and Tenants

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