What Is Padder Lease Coverage?
Padder Lease Coverage is a guarantee that helps you secure your ideal commercial space without the burden of a large upfront cash deposit or letter of credit.
Instead, you purchase Padder Lease Coverage, which provides financial protection for your landlord in case of a default. If a reimbursement request is made under your Padder Lease Coverage, Padder reimburses the landlord, while you remain responsible for repayment to Padder.
How It Works
1. Landlord Invitation
The landlord invites the tenant to apply for a Padder guarantee before signing the lease.
2. Application & Quote
The tenant submits a simple online application to receive a personalized quote tailored to their business needs.
3. Program Fee Payment
A non-refundable program fee must be paid to activate the guarantee and protection limits.
4. Guarantee Issuance
Once activated, the Padder guarantee provides the landlord with up to 12 months of rent protection, covering:
- Unpaid Rent
- Legal Expenses
- Vacancy and Re-Leasing Costs
5. Default Coverage
- Padder Support – If a default occurs, Padder works with the landlord and tenant to explore repayment solutions.
- Protection Limit Reimbursement – If Padder reimburses the landlord for an eligible claim, the tenant must repay Padder for any payouts made under the guarantee.
Annual Renewal
- Guarantees renew annually for the lease term.
- Renewal requires updated tenant information and program fee payment to maintain uninterrupted protection.
Tenant Liability
Tenants must uphold their lease obligations and are responsible for any defaults.
Tenant Repayment Obligation
If a landlord files a successful reimbursement request for arrears and Padder provides reimbursement, the tenant must repay all outstanding balances directly to Padder.
This ensures landlord security and tenant accountability, fostering a fair and transparent leasing process.
For questions or assistance, contact Padder Support.