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Reimbursement Guide

This guide explains the full Padder Lease Protection reimbursement process for commercial landlords when a tenant defaults. It outlines each step from the first missed rent payment to final reimbursement resolution, helping you recover eligible losses quickly and efficiently.

When to Submit a Request

You may begin a reimbursement request if your tenant has:

  • Missed a rent payment
  • Vacated the unit unexpectedly
  • Broken the lease
  • Caused legal, vacancy, or re-leasing expenses

To remain eligible, you must submit a Tenant Default Notice within 16 calendar days of the missed payment.

 

Step 1: Submit a Tenant Default Notice

Deadline: Within 16 days of the missed rent payment

What to do: Complete the Tenant Default Notification Form, or access the Reimbursement Request Centre directly through your Padder Portal.

What you’ll need:

  • Lease Protection ID / Warranty ID: Found in your Padder warranty confirmation email, quote, or on your warranty certificate.
  • Tenant / Tenant Business Name: The name of the tenant or the business entity listed as the tenant.
  • Default Date: The date the rent first became overdue
  • Amount in Arrears: The total base rent outstanding at the time of submitting the notice.
  • Declared Remedial Path: The legal or financial remedy you intend to pursue.
  • Lease Agreement: Upload the full executed lease.
  • Communication Log: Upload correspondence you've had with the tenant regarding payment.

What happens next: Padder will contact both you and the tenant and attempt to resolve the issue. If unresolved within 14 days, you’ll receive the Initial Reimbursement Request form and instructions from Padder to proceed with your formal reimbursement request.

 

Step 2: Request Initial Reimbursement (Months 1–2)

Deadline: Within 15 days of receiving the Initial Reimbursement Request form and instructions from Padder

What to do: Submit the Initial Reimbursement Request Form

What you’ll need:

  • Lease Protection ID / Warranty ID: Found in your Padder warranty confirmation email, quote, or on your warranty certificate.
  • Amount in Arrears: The total base rent outstanding at the time of submitting the Initial Reimbursement Request form.
  • Default End Date: The date the termination notice was provided to the tenant or the most recent date of a missed rent payment.
  • Up-to-Date Account Statement: Attach a current rent ledger that reflects missed payments.
  • Notice of Termination (if applicable): Upload if lease was formally ended.
  • Communication Log (if applicable): Only required if not already submitted.
  • Upload Lease Agreement (if applicable): Only required if not already submitted.

Payment Schedule:

  • Month 1: 100% of base rent
  • Month 2: 75% of base rent

Padder will review your request within 3 business days and process payment within 10 business days, if applicable.

 

Step 3: Submit Monthly Continuation Forms (If Instructed by Padder & the Tenant Remains in Unit)

When to do this: Every 30 days while the tenant continues to occupy the unit without paying rent

What to do: Complete the Monthly Continuation Form

What you’ll need:

  • Lease Protection ID / Warranty ID: Found in your Padder warranty confirmation email, quote, or on your warranty certificate.
  • Confirmation the tenant is still in the unit
  • Confirmation rent is still unpaid
  • Confirmation the unit is actively listed for lease

Ongoing Reimbursement Schedule:

  • Month 3–4: 75% of base rent
  • Month 5–7: 50%
  • Month 8–12: 25%

Skip this step if the tenant has vacated.

 

Step 4: Submit Final Reimbursement Request (Total Unpaid Rent, Vacancy, Legal, or Re-Leasing Costs)

Deadline: Within 90 days of regaining possession of the unit, or earlier if the unit is re-leased

What to do: Submit the Final Reimbursement Request Form 

What you’ll need (depending on the situation):

  • Lease Protection ID / Warranty ID: Found in your Padder warranty confirmation email, quote, or on your warranty certificate.
  • Total Amount of Unpaid Rent: Total amount of unpaid rent since the initial date of default related to this request.
  • Legal Costs: Total legal fees incurred related to this request.
  • Vacancy Loss: Total loss due to extended vacancy after tenant default.
  • Re-leasing Costs: Include broker commissions and advertising costs, if applicable.
  • Total Request Amount: Include: Total amount of unpaid rent, legal costs, vacancy loss, and re-leasing costs.
  • Legal Invoices: Upload court or legal invoices (PDF format).
  • Re-leasing Agreement: Provide the new lease (if signed).
  • Marketing Evidence: Show efforts to re-market the space (e.g. listings, screenshots).
  • Bankruptcy or Auction Documentation: If applicable, upload trustee records or auction outcomes.
  • Finalized Account Records: Attach a finalized rent ledger that reflects missed payments and any other accounting records related to your request. 

Padder will review your submission within 5 business days and issue payment if eligible.

 

Step 5: Reimbursement Request Finalization & Recovery

After all eligible payments are made or your coverage limit is reached:

  • Padder will notify you that the request is closed
  • No further reimbursements will be made
  • Padder will pursue the tenant for recovery directly—you are not responsible

 

Important Reminders

  • Always terminate the lease before re-letting—reletting without termination may void your reimbursement request
  • Respect all timelines for notices and submissions
  • Cooperate with Padder during recovery (as outlined in the Services Agreement)

 

Need Help?

If you have questions or need assistance at any point: