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Padder Deposit explained for operators

Padder Deposit is an optional tenant-paid insurance product that replaces the collection of Last Month’s Rent (LMR) at participating properties. It protects landlords against eligible unpaid base rent for the tenant’s last month, subject to policy terms, conditions, and limits.

Benefits for landlords and operators

Padder Deposit helps reduce move-in friction and the administrative handling of deposits while maintaining protection for the last month's base rent.

Key benefits

  • Tenants move in with a lower upfront cost (no last month's rent collected when Padder Deposit is purchased)
  • Protects eligible last month's base rent, subject to the policy terms and limit
  • No cost to landlords. The tenant pays the premium
  • Simplifies leasing operations: no deposit collection, tracking or return administration
  • Defined claims process with clear timelines

What is covered

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 the policy wording.

Coverage examples (high level)

  • The tenant fails to pay the last month's base rent when due
  • The tenant never takes possession or fails to move in, resulting in eligible rent loss
  • The tenant abandons the unit and eligible rent loss occurs
  • The tenant holds over past the tenancy end date, as applicable under the policy

Important: coverage is for base rent only. It does not include parking, utilities, storage, internet, service charges or other non-rent amounts.

What is not covered

Padder Deposit is not a damage deposit and does not cover:

  • Property damage
  • Cleaning or maintenance charges
  • Legal or enforcement costs
  • Utilities or other non-rent charges
  • Any rent outside the tenant's last month (it is not ongoing rent coverage)

Term, renewal and rent increases

Padder Deposit runs for a three-year initial term, then renews annually up to a maximum of ten years, or until the tenancy ends, whichever comes first.

Rent increases are not covered. Coverage stays tied to the base rent at lease signing and the policy limit.

Typical pricing (operator reference)

Padder Deposit typically costs a one-time premium of 10% to 15% of one month's base rent, one premium per lease. One tenant completes payment; roommates can decide how to split it outside Padder.

Operational requirements

If Padder Deposit is purchased, do not collect last month's rent. Padder Deposit is a tenant-paid insurance premium and is not rent.

Lease file completion (required). After the tenant secures Padder Deposit:

  1. Padder provides a copy of the policy to the tenant and the leasing team.
  2. Save the policy confirmation with the executed lease.
  3. Send the executed lease to underwriting@padder.com once the tenant signs after securing the policy.

Referral process (step by step)

Use this workflow when Padder Deposit is accepted at the property:

  1. Approve the tenant for the lease, or confirm they are approvable.
  2. Offer Padder Deposit as an option, never a requirement.
  3. The tenant completes the Deposit application at resources.padder.com/renters. A standalone Padder Deposit application needs no documents and is approved instantly.
  4. If approved and purchased, do not collect last month's rent.
  5. Complete the lease file steps above.

Tenants applying for Padder Guarantor are automatically considered for Padder Deposit where the property accepts it.

Claims and timelines (Deposit only)

Claims Centre: resources.padder.com/claims/padder-deposit

Important:

  • If the tenant(s) in default hold Padder Guarantor (with or without Padder Deposit), follow the Padder Guarantor claims process and timelines.
  • If the tenant(s) in default hold only Padder Deposit, follow the process below. No Notice of Tenant Default and no re-listing step are required for Deposit-only claims.

Padder Deposit: process and timelines

  1. Enforce your lease and keep records of all steps taken and tenant communications.
  2. Submit your Last Month's Rent Claim Form within 60 days of the Coverage Event.
  3. Once your claim is complete, it's reviewed on the insurer's behalf. If approved, payment is issued up to the policy limit.

Responsible Party (case by case)

Some tenants may be asked to provide a Responsible Party to support their application. If needed, Padder communicates this directly to the tenant. Responsible Parties do not complete a full tenant application but may be asked for ID and/or financial proof.

Availability

Padder Deposit is currently available for participating residential properties in Ontario. Padder is working towards availability in Alberta and British Columbia.

Important: availability is property specific. Confirm whether a building or portfolio is enabled before presenting options to tenants.

Need help?

Policy, coverage and claim questions: underwriting@padder.com. Portal or account: support@padder.com. Phone: +1 (289) 536-7111, Monday to Friday, 9:00 AM to 5:00 PM ET. Claims Centre: resources.padder.com/claims.