What is Padder Deposit?
Rather than paying a full month of rent upfront, you pay a smaller one-time premium to Padder.
Padder Deposit is an optional insurance product your landlord can accept instead of collecting a Last Month’s Rent (LMR) deposit.
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 Padder under your indemnity agreement.