What does Padder Guarantor cover for my landlord?

Up to 12 months of unpaid base rent

If you default on your lease and stop paying, Padder Guarantor can reimburse your landlord for unpaid base rent only, up to a maximum of 12 months, subject to the policy’s terms and limits.

It covers base rent as stated in your lease. It does not cover:

• Parking or storage fees
• Utilities (hydro, gas, water, internet, etc.)
• Damage to the unit or building
• Cleaning, repairs, or wear and tear
• Fines, penalties, or other non-rent charges

You are still responsible for paying rent. If Padder pays your landlord under the policy, you’ll be required to repay Padder under your indemnity agreement.

Where a landlord regains vacant possession and re-lets the unit, this 12-month maximum can include up to 2 months of additional base rent loss for eligible re-leasing time. For example, if a landlord's eligible loss is 3 months of base rent, Padder may reimburse those 3 months plus up to 2 months of re-leasing time — in all cases counting toward the policy's overall limit (up to 12 months) and subject to the policy rules and conditions.

What types of situations are covered?

Subject to the policy terms and conditions, Padder Guarantor is designed to protect your landlord in lease-default scenarios, such as:

• Failure to move in: You sign the lease but never take possession and don’t pay as agreed.
• Early lease break: You move out before the end of your fixed term and stop paying rent.
• Abandonment: You leave the unit without notice and without paying what you owe.
• Holdover: You stay in the unit after your lease ends without agreement and don’t pay as required.

After following the proper legal process to end the tenancy or regain possession, your landlord may be able to submit a claim to Padder for eligible unpaid base rent.

Policy term: up to 36 months, no renewals

Every Padder Guarantor policy:

• Runs for up to 36 months (3 years), or
• Ends when you move out,
  • Whichever happens first.

Padder Guarantor policies do not renew.

• When your lease ends and you move out, your Padder Guarantor coverage ends.
• If you sign a new lease in the future, you would need to reapply if your new landlord requests Padder. Padder is designed to be a stepping stone — a way to move into a home now, while you continue building your own rental and credit history over time.

What you owe Padder (and when)

You pay a one-time premium to purchase Padder Guarantor.

• As long as you meet your lease obligations and don’t default, you never owe Padder anything beyond that one-time premium/fee (subject to the policy terms and conditions).
• If you do default and Padder pays your landlord for a covered loss, your debt obligation simply shifts from your landlord to Padder—you’ll be required to repay Padder for what was paid out under the policy.