Frequently Asked Questions
Quick answers to the questions operators ask most often about Padder Guarantor and Padder Deposit.
About the Products
What is Padder Guarantor?
Padder Guarantor is an insurance policy that acts as a co-signer for tenants who don't qualify on their own. It protects you against rent default for up to 12 months of rent (including two months for re-leasing) during the first 36 months of tenancy.
What is Padder Deposit?
Padder Deposit is an insurance policy that replaces the traditional last month's rent deposit. It protects you for up to one month's rent in losses related to rent default, failure to move in, or abandonment, for the duration of the tenancy (up to 10 years).
Who underwrites the policies?
Both policies are contractual liability insurance policies issued by the Insurance Company of Prince Edward Island (ICPEI), a Desjardins subsidiary. Padder Underwriting Inc. is the managing general agent.
How does Padder benefit my operation?
Operators using Padder typically see faster lease-ups, higher approval-to-lease conversion, lower bad debt exposure, and reduced administrative overhead — without changing how you screen or enforce leases.
Cost & Compensation
Is there a cost to me?
No. Padder is free for operators. The tenant pays the entire premium directly to Padder at checkout.
Do I receive a fee, commission, or referral payment?
No. Under section 134(1)(a) of the Residential Tenancies Act (Ontario), operators cannot receive any fee, commission, or compensation tied to a tenant's purchase of Padder.
Who collects the premium?
The tenant pays Padder directly.
Tenant Applications
Can I require a tenant to use Padder?
No. Tenant use of Padder is strictly voluntary and cannot be made a condition of tenancy.
Who qualifies for Padder Deposit?
Anyone you've already approved for a unit qualifies for Padder Deposit. It aligns with your screening — it doesn't replace it.
Who qualifies for Padder Guarantor?
Padder Guarantor is designed for applicants who don't meet your standard criteria — typically due to limited Canadian credit, employment type (freelance, contract, self-employed), newcomer status, or income-to-rent ratio. All applicants are subject to underwriting.
How long does approval take?
Decisions are typically returned within 24 business hours after all household members complete their applications.
How do I track applications and policy status?
Every Monday at 10:00 a.m. ET, Padder sends your team a Weekly Snapshot email summarizing every applicant currently in progress at your building(s), with the stage each one is at. You'll also receive direct confirmation when a policy is issued, so your team can complete lease execution.
Coverage & Limits
What does Padder Guarantor cover?
Unpaid rent following a lease default, including rent loss, failure to move in, holdover, and abandonment. Coverage is up to 12 months of rent (inclusive of two months for re-leasing) over the first 36 months of tenancy.
What does Padder Deposit cover?
Up to one month's rent in losses arising from rent default, failure to move in, or abandonment, for the duration of the tenancy (up to 10 years).
What's not covered?
Padder does not cover property damage, non-rent fees or charges, rent increases beyond the base rent at lease execution, losses arising from contract amendments made without Padder's written consent, or losses from subletting or assignment without Padder's consent.
Does Padder cover rent increases?
No. Coverage reflects the base rent at lease execution. Any subsequent rent increases are excluded.
Does Padder interfere with my right to enforce the lease?
No. You follow your standard lease enforcement process, and you retain all rights and remedies under the lease and applicable law. Padder reimburses you after a Coverage Event occurs.
Claims & Reimbursement
What's the high-level claims process?
You follow your standard lease enforcement when a tenant falls behind. Notify Padder within 45 days of the missed payment using the Notice of Tenant Default Form. Once you've regained vacant possession after a Coverage Event, re-list the unit within 7 business days and submit your reimbursement request within 60 days of the Coverage Event.
What documents do I need to submit a reimbursement request?
The signed lease agreement, rent ledger, legal notices and decisions (e.g., N4, L1, LTB order), proof of re-listing, and any other documentation reasonably required to support the claim.
How fast does Padder pay valid claims?
Padder targets fast turnaround — typically within 5 business days of receiving a complete reimbursement request, though complex cases may take longer.
What happens between notification and claim?
After you submit a Notice of Tenant Default, Padder contacts you and the tenant to attempt resolution and keeps your team updated. This doesn't pause your lease enforcement process.
What if I miss the 45-day notification window or the 60-day reimbursement deadline?
Missing those deadlines may relieve the insurer of any obligation to pay on that Coverage Event. We strongly recommend setting internal triggers to file early.
Compliance & Onboarding
Do I need to change my lease, screening, or enforcement processes?
No. Padder is designed to fit your existing operations. You continue to screen, lease, and enforce as you do today.
What do I need to do to start accepting Padder?
Sign the Operator Collaboration Agreement and complete a short onboarding session. From there, you can refer applicants directly.
Does Padder approval override my leasing decision?
No. A Padder Guarantor approval doesn't obligate you to lease to that applicant. You retain full discretion over your leasing decisions.
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