Operator FAQ (Guarantor + Deposit)
This article provides quick answers covering pricing, terms, roommate rules, responsible party requests, Deposit LMR rules, and claims submission for Padder products.
FAQ:
Is Padder required?
No. Padder products are optional and should never be presented as a condition of tenancy.
Does Padder approval override our leasing decision?
No. You retain full control over leasing decisions.
Who pays for Padder?
Tenants pay the premium. There is no cost to landlords/operators for offering Padder.
Do the policies renew?
No. Both products (Guarantor + Deposit) do not renew.
Do the products cover rent increases?
No. Coverage is based on base rent at lease signing and the selected policy limit. Rent increases are not covered.
Padder Guarantor (Approval Support + Rent Coverage)
What are the benefits of Padder Guarantor for landlords and operators?
Padder Guarantor helps reduce default risk, combat fraud, and accelerate lease-ups—while expanding your pool of qualified renters.
Key benefits
- Up to 12 months of rent protection during the first 36 months of the lease
- Covers eligible events such as non-payment, failed move-ins, holdovers, and abandonment (base rent only)
- No cost to landlords — paid for by the tenant
- Digital claims process with dedicated support
- Helps fill units faster, reduce bad debt, and improve NOI without increasing financial exposure
What does Padder Guarantor cover?
Padder Guarantor protects landlords against lost base rent if a covered tenant default occurs during the first 36 months of the lease, up to the policy limit.
Covered events include
- Missed rent (up to 12 months, depending on selected coverage level)
- Lease abandonment (including eligible reletting time)
- Failure to move in
- Holdover after lease end
Not covered
- Property damage
- Legal or enforcement costs
- Cleaning or maintenance fees
- Utilities or other non-rent charges
Does Padder Guarantor help with non-financial lease breaches?
Yes — but only if the non-financial breach results in a covered event that causes eligible rent loss (for example: early termination leading to loss of rent). Non-financial breaches are not covered on their own.
When am I eligible to receive the full protection limit under Padder Guarantor?
You may be eligible for up to 12 months of rent loss if:
- The default occurs during the 36-month coverage term
- You follow all required reimbursement steps
- Your reimbursement request is complete and meets all policy conditions
Coverage applies only to eligible rent losses as defined in the policy.
How much does Padder Guarantor cost?
Padder Guarantor typically costs 30%–130% of one month’s base rent. Premium is one per lease/policy (not per tenant). Roommates can choose to split the cost amongst themselves.
Do all roommates need to apply for Padder Guarantor?
It depends on the lease structure:
- Single shared lease: yes, all tenants named on the lease must apply.
- Individual leases: only the tenant(s) on the lease requiring a guarantor must apply.
What should additional leaseholders do if they didn’t receive their invite?
They should check spam/junk first. If it’s not there, confirm the email address was entered correctly before contacting Padder support.
Should additional leaseholders start their own application through https://padder.com/renter/?
No. Additional leaseholders should not start separate applications through https://padder.com/renter/. They should complete their application through the invite linked to the primary applicant’s application so underwriting can assess all named leaseholders correctly.
Is the Guarantor premium refundable?
Padder Guarantor is generally non-refundable once the lease is signed and coverage is in effect. If no lease was signed and possession was not taken (confirmed in writing by the operator), the tenant may be eligible for a refund.
Padder Deposit (LMR Replacement Policy)
What are the benefits of Padder Deposit for landlords and operators?
Padder Deposit helps reduce move-in friction and administrative handling of deposits while maintaining protection for the last month’s base rent.
Key benefits
- Lower upfront move-in costs for tenants (no LMR collected when Deposit is purchased)
- Protects eligible last month’s base rent (subject to policy terms and limit)
- No cost to landlords — paid for by the tenant
- Simplifies leasing operations (no LMR collection, tracking, or deposit return administration)
- Defined claims process with clear timelines
What does Padder Deposit cover?
Padder Deposit covers eligible unpaid base rent for the tenant’s last month, up to the policy limit (generally equal to one month of base rent at lease signing), subject to policy terms and conditions.
Coverage examples (high level)
- Tenant fails to pay the last month’s base rent when due
- Tenant never takes possession / fails to move in, resulting in eligible rent loss
- Tenant abandons the unit and eligible rent loss occurs
- Tenant holds over past the tenancy end date (as applicable under the policy)
Not covered
- Property damage
- Legal or enforcement costs
- Cleaning or maintenance fees
- Utilities or other non-rent charges
- Any rent amounts outside the tenant’s last month (it is not ongoing rent coverage)
Can we collect LMR if a tenant uses Padder Deposit?
No. If Padder Deposit is used for a lease, do not collect LMR.
How much does Padder Deposit cost?
Padder Deposit typically costs 10%–15% of one month’s base rent. One premium per lease. One tenant pays; roommates can decide how to split outside of Padder.
Claims, Support, and Availability
Which claims process should we follow if a tenant has more than one Padder policy?
- Padder Guarantor (with or without Padder Deposit): complete the Padder Guarantor claims process and follow the Padder Guarantor timelines, including submitting a Notice of Tenant Default within 45 days of the first missed rent payment.
- Only Padder Deposit: complete the Padder Deposit claims process and follow the Padder Deposit timelines. A Notice of Tenant Default is not required for Deposit-only claims.
Where do we submit claims?
Claims & Reimbursement Centre: https://resources.padder.com/en-ca/requests
How can we track tenant applications and policy status?
Use the Padder Portal Application Tracker to view application status, coverage details/term, payment confirmation, and activation date. You may also receive a weekly Applicant Update Email highlighting tenants with incomplete steps.
Why is a tenant being asked for a Responsible Party?
A Responsible Party is someone who helps strengthen a tenant’s application. They are not added to the lease and are not legally responsible for rent.
A Responsible Party can be a parent, employer, friend, family member, organization, or sponsor — in or outside of Canada.
Padder may request a Responsible Party on a case-by-case basis when an application could use additional support.
What the Responsible Party needs to do
Responsible Parties do not complete a full Padder application. Padder may request:
- Government-issued ID, and/or
- Financial proof (such as income or assets) to confirm eligibility
IMPORTANT: A Responsible Party is not the same as a co-signer or guarantor on the lease.
Where should we send general questions?
Start with Padder’s 24/7 chatbot in the Help Centre. Paddie The Chatbot, will escalate inquiries it can’t resolve to a human agent Monday–Friday, 8:00 AM–6:00 PM (excluding weekends and holidays).
What link should we share with tenants?
https://padder.com/renter/
Is Padder available in all provinces?
Padder Guarantor and Padder Deposit are currently available for participating residential properties in Ontario.
Padder is actively working towards availability of both products in Alberta and British Columbia.
Availability is property-specific and may vary by partner rollout.
How do we become a Padder partner?
Email info@padder.com to get started.
Onboarding begins with an introduction meeting with your Customer Success Manager and Account Manager to confirm products, workflow integration, properties to enable, and rollout timelines. Padder onboards your portfolio on your behalf, then schedules leasing team training so referrals can begin.