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Understanding Padder Lease Coverage and How It Works

Padder Lease Coverage is a lease guarantee designed to replace or supplement traditional cash deposits for commercial leases.

The Padder Lease Coverage 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 Coverage, ensuring landlords receive protection of up to 12 months’ rent. This includes coverage 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 Coverage before lease signing. This option is also available for existing tenants to replace their cash deposit or letter of credit.
  2. Application & Quote:
    The tenant submits an online application and receives a custom quote upon approval.
  3. Program Fee Payment:
    The tenant pays a non-refundable fee to secure the guarantee.
  4. Lease Signing & Padder Addendum:
    The landlord and tenant finalise the lease, including the Padder addendum.
  5. Guarantee Issuance:
    Padder provides the agreed protections.
  6. Default Protection:
    If the tenant defaults, Padder assists directly and reimburses eligible reimbursement requests, while the tenant remains liable for any amounts Padder pays.
  7. Annual Renewal:
    Guarantees renew annually with updated tenant information and payment