What does Padder Deposit cover?

Padder Deposit covers up to one month’s base rent

Padder Deposit can reimburse your landlord for up to one month of base rent if, at the end of your tenancy, you don’t pay your last month’s rent.

Key points:

• Coverage is limited to one month of base rent (the rent amount in your lease).
• It does not cover:
  • Utilities (hydro, gas, water, internet, etc.)
  • Parking or storage fees
  • Damage, cleaning, or repairs
  • Any other non-rent charges

If Padder pays your landlord for that last month because you didn’t pay it, you’ll owe that amount to Padder under your indemnity agreement.

Typical situations where Padder Deposit may respond

Subject to the policy terms and conditions, Padder Deposit is designed to protect against:

• Failure to move-in.
• You move out and don’t pay your last month’s rent.
• You end your tenancy early and leave owing what should have been your final month’s rent.
• Your lease rolls into month-to-month, and you leave without paying the last month you’re responsible for.

In these cases, once your landlord has followed the required legal steps for ending the tenancy, they may be able to submit a claim to Padder for the unpaid last month’s base rent.

How Padder Deposit interacts with your lease

Padder Deposit changes how your landlord secures your last month’s rent, but it does not change your responsibilities under the lease.

• Instead of paying Last Month’s Rent deposit upfront on move-in, you pay a smaller one-time Padder Deposit premium.
• Your landlord relies on Padder’s policy to protect the last month’s base rent if you leave without paying it.
• You are still responsible for:
  • Paying every month’s rent, and
  • Paying your final month’s rent, whether you’re on a fixed-term lease or month-to-month.

If you pay your last month’s rent as required, no claim is made and you don’t owe Padder anything beyond the one-time premium.

Policy term: for the length of your tenancy (including month-to-month) up to 10 years

Padder Deposit is tied to your specific tenancy, not just the original fixed term:

• The policy stays in effect for the full length of your tenancy (up to 10 years), including if your lease moves to a month-to-month arrangement with the same landlord for the same unit. 
• Coverage continues until you move out and your tenancy ends, or until the policy is otherwise ended under its terms.

If anything about your lease changes before move-in—such as rent amount, lease start date, unit, or landlord—contact Padder support so we can confirm whether your Padder Deposit policy needs to be updated or re-issued to keep everything properly aligned.