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Operator Guide: Padder Guarantor (Approval Support + Rent Coverage)

Padder Guarantor is an optional tenant-paid lease guarantee (contractual liability insurance policy) used when an applicant doesn’t meet standard screening requirements but is otherwise a good fit. 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 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 — paid for by the tenant
  • Fast, digital claims process with dedicated support
  • Helps fill units faster, reduce bad debt, and improve NOI without increasing financial exposure

What’s covered (high level)

Padder Guarantor protects landlords against lost base rent if a covered tenant defaults during the first 36 months of the lease.

Covered events include

  • Missed rent (up to 12 months of base rent protection, depending on coverage level selected)
  • 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

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.

Non-financial lease breaches (operator clarity)

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

Coverage levels and term (operator view)

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 months of protection
  • 6 months of protection
  • 12 months of protection

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

When am I 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 reimbursement request steps
  • Your reimbursement request is complete and meets all policy conditions

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

Leaseholder rules (critical)

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

  • If multiple tenants are on one shared lease (single lease for the unit):
    All tenants named on the lease must complete an application if one tenant is referred.
  • If tenants are leasing one unit but have individual leases:
    Only the named tenant(s) on the individual lease requiring a guarantor must apply.

Invitation flow:

The primary applicant submits roommate/leaseholder email addresses and additional leaseholders receive an invite. If an invite isn’t received, they should check spam/junk first.

IMPORTANT: Additional leaseholders should not start a separate application 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.

Typical pricing (operator reference)

Padder Guarantor typically costs 30%–130% of one month’s base rent. Premium is one per policy/lease, not per tenant—roommates can choose to split the cost amongst themselves.

Operational next steps

  1. For the end-to-end workflow, see: Operator Process: Referrals & Lease File Completion (Guarantor + Deposit)
    At minimum, the close-out steps must happen every time:
    1. Padder provides a copy of the policy to the tenant and leasing team (Padder action).
    2. Save the policy confirmation with the executed lease (Operator action).
    3. Provide the executed lease to Padder once the tenant signs after securing the policy (Operator action).
  2. For claims timelines and required documentation, see: Operator Claims & Reimbursement: Processes + Timelines (Guarantor + Deposit)

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 actively working towards expanding availability to Alberta and British Columbia.

IMPORTANT: Availability is property-specific. Confirm whether a building/portfolio is enabled before presenting options to tenants.

Where to get help

Start with Padder’s 24/7 AI chatbot in the Help Centre. Padder 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).