--- title: What is Padder Deposit? description: Padder Deposit replaces your last month's rent deposit with a one-time premium of 10% to 15% of one month's rent, at buildings that accept it. image: https://help.padder.com/hubfs/Partner_Brand_Centre/Padder_Link_Preview_1200x630.png --- [Skip to content](https://help.padder.com/what-is-padder-deposit#main-content) [![Padder Logo](https://help.padder.com/hs-fs/hubfs/Padder%20Logo.png?width=250&height=72&name=Padder%20Logo.png)](https://help.padder.com) - [Help Centre](https://help.padder.com/) - [Claims Centre](https://resources.padder.com/claims) - [Contact support](https://resources.padder.com/support) Open main navigation Close main navigation - [Help Centre](https://help.padder.com/) - [Claims Centre](https://resources.padder.com/claims) - [Contact support](https://resources.padder.com/support) Search the Help Centre - There are no suggestions because the search field is empty. 1. [Padder Help Centre](https://help.padder.com/) 2. [Residential Tenant](https://help.padder.com/residential-tenant) 3. [Start Here: About Padder & Your Options](https://help.padder.com/residential-tenant#start-here-about-padder-your-options) September 25, 2026 # What is Padder Deposit? ## Padder Deposit is an alternative to a last month's rent deposit (LMR). Padder Deposit is an insurance policy that replaces the upfront rental deposit with a smaller one time premium to lower your move-in costs. ### **Replaces the Last Month’s Rent deposit** In eligible buildings, Padder Deposit is used in place of a traditional LMR deposit: - Your landlord does not collect a LMR deposit from you. - Padder issues an insurance policy that can pay out to your landlord if you fail to pay your final month of rent. --- #### **Lowers move-in costs** Because you’re paying a one-time premium (between 10% and 15% of one month's rent) instead of a full month of rent upfront, your move-in costs are lower and therefore, cash flow is easier to manage. --- #### **One-time premium, not a refundable deposit** Padder Deposit premiums are not deducted from your final month’s rent. The advantage is that your upfront move-in costs are significantly lower, while you still remain responsible for paying your final month’s rent when it becomes due. - It’s an insurance premium. - At the end of your tenancy, there is no “deposit” to return because no LMR was held. --- #### **What Padder Deposit covers** Padder Deposit protects your landlord only for the last month of rent owed under your tenancy, up to one month of base rent: - You are still responsible for paying every month’s rent, including the last month. - This applies whether your lease ends on a fixed date or rolls into a month-to-month tenancy. - If you move out without paying your last month’s rent and a valid claim is paid to your landlord, you will owe that amount to the insurer under your indemnity agreement. - [Residential Tenant](https://help.padder.com/residential-tenant#main-content) - [Start Here: About Padder & Your Options](https://help.padder.com/residential-tenant#start-here-about-padder-your-options) - [Padder Credit Builder](https://help.padder.com/residential-tenant#padder-credit-builder) - [Eligibility: Who Padder Is For](https://help.padder.com/residential-tenant#eligibility-who-padder-is-for) - [Coverage & Limits: What’s Protected](https://help.padder.com/residential-tenant#coverage-limits-whats-protected) - [Pricing, Payment & Refunds](https://help.padder.com/residential-tenant#pricing-payment-refunds) - [Applying to Padder: How the Process Works](https://help.padder.com/residential-tenant#applying-to-padder-how-the-process-works) - [Troubleshooting Your Application](https://help.padder.com/residential-tenant#troubleshooting-your-application) - [Your Responsibilities & the Indemnity Agreement](https://help.padder.com/residential-tenant#your-responsibilities-the-indemnity-agreement) - [Managing Your Policy: Changes, Transfers & Reapplying](https://help.padder.com/residential-tenant#managing-your-policy-changes-transfers-reapplying) - [Trust, Safety & Support](https://help.padder.com/residential-tenant#trust-safety-support) - [Frequently Asked Questions](https://help.padder.com/residential-tenant#frequently-asked-questions) - [Residential Operator](https://help.padder.com/residential-operator#main-content) - [Getting Started & Referrals](https://help.padder.com/residential-operator#getting-started-referrals) - [Coverage & Claims](https://help.padder.com/residential-operator#coverage-claims) - [Frequently Asked Questions](https://help.padder.com/residential-operator#frequently-asked-questions) - [Terms of use](https://padder.com/terms-of-use/) - [Privacy Policy](https://padder.com/privacy-policy/) - [Privacy Statement](https://resources.padder.com/privacy-statement) - [Disclosure Statement](https://resources.padder.com/disclosure-statement) - [Regulatory Disclosures](https://resources.padder.com/regulatory-disclosures) - [CISRO Conduct Sheet](https://www.cisro-ocra.com/Documents/View/2471) - [Broker Fact Sheet](https://www.ribo.com/wp-content/uploads/2025/01/RIBO_Conduct_Sheet_040622-fact_sheet-1.pdf) - [Contact us](https://resources.padder.com/support) [![Padder Logo](https://help.padder.com/hs-fs/hubfs/Padder%20Logo.png?width=180&height=52&name=Padder%20Logo.png "Padder Logo")](https://www.padder.com) Padder Underwriting Inc. is a licensed insurance broker headquartered in Toronto, Ontario. It arranges coverage for tenants and landlords in provinces where it is licensed to offer insurance products. Padder partners with licensed Canadian insurers to provide your coverage. Need help? Paddie, our AI chat, is here any time. Our team is on email and phone Monday to Friday, 9am to 5pm ET. © 2026 Padder Underwriting Inc. All rights reserved.