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 Padder if Padder pays your landlord for that unpaid last month’s rent (subject to the policy terms and conditions).