---
title: Does Padder Deposit replace my last month's rent deposit?
description: Yes. Where your building accepts it, Padder Deposit replaces the last month's rent deposit. You pay a one-time premium instead and still pay last month.
image: https://help.padder.com/hubfs/Partner_Brand_Centre/Padder_Link_Preview_1200x630.png
---

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September 25, 2026

# Does Padder Deposit replace my last month's rent deposit?

## Padder Deposit is specifically designed as an optional replacement to a traditional last month’s rent (LMR) deposit.

#### **Instead of providing your landlord an upfront rental deposit, you pay a smaller one time premium to Padder. This lowers your upfront move-in costs while providing insurance protection for your landlord.**

In eligible properties:

- Your landlord does not collect a LMR deposit from you.
- Instead, you pay one-time Padder Deposit premium to Padder (typically 10%–15% of one month's rent).
- Padder then protects your landlord for your last month’s base rent only if you move out without paying it.
- The policy stays in effect for the length of your tenancy, including if your lease moves to month-to-month, until you move out (up to 10 years).

You still:

- Pay all your regular monthly rent, including your final month.
- Are required to repay the insurer if the insurer pays your landlord for that unpaid last month’s rent (subject to the policy terms and conditions).

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Padder Underwriting Inc. is a licensed insurance broker headquartered in Toronto, Ontario. It arranges coverage for tenants and landlords in provinces where it is licensed to offer insurance products. Padder partners with licensed Canadian insurers to provide your coverage.

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