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Legal Action Path

Use this path when you intend to pursue court action or a binding resolution for unpaid rent and/or damages.

When to use this path

  • You are seeking a judgment, settlement, or other binding legal resolution.

Important: Termination is required to end the lease and stop the tenant’s rent obligations before pursuing legal action for unpaid rent/damages. Keeping the lease active while suing for overdue payments/damages may impact eligibility.

Before you start

Have ready: warranty number, lease, key dates, arrears statement/account statement, and tenant communication log.

Steps + timelines

1) Document your enforcement and outreach (Operator)

Attempt to resolve the balance directly with the tenant and keep records.

2) Notify Padder (time-sensitive)

Submit the Tenant Default Notification within 16 days of the payment’s original due date (or lease period).

  • Select Suing for Unpaid Rent/Damages.

3) Coordinate on next steps (Padder + Operator)

Padder will support communication and document outcomes, then confirm next steps based on the legal path.

4) Terminate the lease (Operator)

Serve termination notice per lease terms and statutory requirements.

5) Submit your Initial Request (time-sensitive)

Submit within 15 days of serving the termination notice.

Required uploads (Legal Action):

  • Original signed lease agreement

  • Statement of arrears as of the termination date

  • Copy of the termination notice served

6) Obtain legal resolution (Operator)

Secure a judgment, settlement, or binding outcome. Initial reimbursement(s) may be adjusted to prevent duplication based on final outcome.

7) Regain possession + mitigate (Operator)

Regain possession following legal procedures, actively mitigate, and retain evidence (marketing, re-letting activity).

8) Submit your Final Request (time-sensitive)

Submit by the earlier of:

  • Re-renting, or

  • 90 days from regaining possession

Required uploads: 

  • Final account statement (charges, payments, outstanding balance)

  • Evidence of mitigation (marketing/re-letting progress, if applicable)

  • Proof of vacancy costs (invoices/receipts, if applicable)

  • Proof of legal costs (invoices/receipts, if applicable)

Common reasons for delay

  • Notification submitted after Day 16

  • Lease not terminated before pursuing the legal route

  • Missing termination notice or arrears statement

  • Final request missing mitigation evidence