What happens if a tenant has not paid the premium?

#What happens if a tenant hasn't paid?

A tenant's payment status affects whether a guarantee begins, but once a guarantee is in force, missed premium payments do not affect your coverage. This article walks through the three situations where payment comes up.

#Before coverage begins: no payment, no bond

For a new tenant, coverage is not issued until the tenant has paid the premium. We cannot issue a bond on an unpaid application, so until you see the guarantee confirmed, the tenant is not covered and you should not treat them as though they are.

If a tenant tells you they've "signed up" but you haven't received confirmation that coverage is in place, the most common reason is that payment hasn't been completed. In that case, the tenant simply needs to pay the invoice. Once they pay, and sign our agreement, coverage will automatically issue to the email you have on file.

#During the term: missed monthly payments don't affect your coverage

We offer some tenants the option to pay in monthly installments rather than upfront. If a tenant on a monthly plan misses a payment, their coverage does not lapse, pause, or reduce. Your guarantee stays exactly as it was issued for the full term.

The unpaid amount remains a debt the tenant owes to PandaGuarantee. We handle collection of that balance directly with the tenant, and it is not your responsibility.

#At renewal: coverage continues if the lease rider requires it

If the PandaGuarantee lease rider was included in the tenant's original lease, the tenant is obligated to keep coverage in place for as long as the rider requires. Unless you, as the owner, release the tenant from that obligation, the guarantee will automatically renew at the end of each term.

As with a missed monthly payment, the renewal premium becomes an amount the tenant owes to PandaGuarantee. Your coverage is unaffected.

#What you need to do

For new leases, if the tenant has not paid the premium, we can't issue coverage, so we recommend reminding tenants with outstanding invoices to pay.

When it comes to renewals or monthly payments: nothing. Payment issues are between the tenant and PandaGuarantee.