What is Padder Guarantor?
Instead of asking a family member or friend to co-sign, you can use Padder Guarantor to give your landlord added assurance about your tenancy.
Padder Guarantor is an insurance policy alternative to a personal guarantor, so you don't need to ask family or friends. The policy reimburses your landlord for missed base rent, but it does not cover your monthly rent payments; you remain responsible for these.
When you buy a Padder Guarantor policy, your landlord is the beneficiary. That means the policy is designed to protect them against certain rent-related losses.
If something goes wrong with the tenancy, Padder Guarantor can reimburse your landlord (up to the policy limits) for eligible losses such as:
- Unpaid base rent
- Early lease breaks
- Failure to move in after the lease is signed
- Abandonment of the unit
- Staying past the end of the lease (holdover)
Important note: You still remain responsible for your lease obligations, including paying rent on time. If the insurer pays your landlord under the policy, you’ll be required to repay the insurer under your Indemnity Agreement.