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Padder Guarantor explained for operators

Padder Guarantor is an optional tenant-paid lease guarantee (contractual liability insurance policy) used to support approvals where an applicant may benefit from additional backing. It protects landlords against eligible lost base rent if a covered tenant default occurs during the first 36 months of the lease (subject to policy terms, conditions, and limits).

Benefits 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 base rent protection during the first 36 months of the lease
  • Helps cover non-payment, failed move-ins, holdovers and abandonment (eligible base rent only)
  • No cost to landlords. The tenant pays the premium
  • Fast, digital claims process with dedicated support
  • Helps fill units faster, reduce bad debt and improve NOI without increasing financial exposure

What is covered (high level)

Padder Guarantor protects landlords against lost base rent if a covered tenant default occurs during the first 36 months of the lease, subject to the policy wording.

Covered events include

  • Missed rent (up to 12 months of base rent protection, depending on the coverage level selected)
  • Lease abandonment (including eligible re-leasing time)
  • Failure to move in
  • Holdover after the lease ends
  • Re-leasing time: where you regain vacant possession and re-let the unit, eligible coverage can include up to 2 months of additional base rent loss for re-leasing time. This is included within, not on top of, the selected coverage limit of up to 12 months

Not covered

  • Property damage
  • Legal or enforcement costs
  • Cleaning or maintenance charges
  • Utilities or other non-rent charges

Important: Coverage is for base rent only and does not include parking, utilities, storage, amenities, service charges or other add-ons. Rent increases are not covered. The full exclusions are in the policy wording.

Non-financial lease breaches

Padder Guarantor may apply to non-financial breaches only if the breach results in a covered event that causes eligible rent loss (for example, an early termination that leads to loss of rent). It does not reimburse non-financial breaches on their own.

Coverage levels and term

Padder Guarantor provides up to 12 months of base rent protection, valid for up to 36 months or until the tenant moves out, whichever comes first.

Policies are sold as 3, 6 or 12 months of protection.

After the tenant submits an application, Padder emails the leasing team (or the landlord's designated contact) to confirm lease details and recommend a coverage level. Leasing teams can proceed with the suggested option or select another available option.

When are you eligible for the full protection limit?

You may be eligible for up to 12 months of rent loss if:

  • the tenant default occurs during the 36-month coverage term;
  • you follow all required claim steps; and
  • your claim is complete and meets all policy conditions.

Coverage applies only to eligible rent losses as defined in the policy.

Leaseholder rules

How many people need to apply depends on the lease structure.

  • One shared lease for the unit: every tenant named on the lease must complete an application if one tenant is referred.
  • Individual leases for one unit: only the named tenant(s) on the individual lease that needs a guarantor must apply.

Invitation flow: the primary applicant enters their roommates' email addresses and each additional leaseholder receives an invite. If an invite is not received, they should check spam or junk first.

Important: additional leaseholders should not start a separate application. They should apply through the invite linked to the primary applicant's application so underwriting can assess all named leaseholders together.

Typical pricing (operator reference)

Padder Guarantor typically costs a one-time premium of 30% to 130% of one month's base rent. There is one premium per policy, not per tenant. Roommates can choose to split the premium between themselves.

Operational next steps

For the end-to-end workflow, see Operator Process: Referrals and Lease File Completion. At minimum, these close-out steps happen every time:

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

For claims timelines and required documentation, see Operator Claims and Reimbursement: Processes and Timelines.

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.

Availability

Padder Guarantor 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. Refer tenants to resources.padder.com/renters.

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.