Understanding Padder Lease Protection and How It Works

The Padder Lease Protection guarantee provides financial security for landlords while helping tenants preserve business capital and maintain financial flexibility.

Instead of paying a large cash deposit, tenants secure Padder Lease Protection, ensuring landlords receive protection of up to 12 months’ rent. This includes protection for unpaid rent, legal fees, and costs associated with vacancy and re-leasing—offering peace of mind and a seamless leasing experience.

How It Works

1. Landlord Invitation:
   The landlord invites the prospective tenant to apply for Padder Lease Protection before lease signing.
   
   • Padder Lease Protection is also available to existing tenants wishing to replace their cash deposit or letter of credit.
2. Application & Quote:
   The tenant submits a simple online application and receives a custom quote upon approval.
3. Program Fee Payment:
   The landlord pays a non-refundable program fee to secure the protection. 

   This fee may be included as a line item in the tenant’s lease agreement.

4. Lease Signing:
   

   Once you’ve received confirmation that Padder Lease Protection has been successfully purchased, please proceed with lease signing.

5. Guarantee Issuance:
   Protection begins the day the lease begins.
6. Default Protection:
   If the tenant defaults, Padder steps in to assist and processes eligible reimbursement requests. 

   The tenant remains liable for any amounts paid by Padder on their behalf.

7. Annual Renewal:
   

   Padder Lease Protection renews annually for the full lease term, pending updated tenant information and payment of the renewal fee.

   Automated reminders will begin 90 days before the renewal date, with clear instructions for next steps.