What Does PandaDeposit Cover?

#What is claimable:

You can claim anything that could legally be deducted from a traditional security deposit under the laws of your state and the terms of your lease. If you could lawfully withhold it from a cash deposit, you can claim it under PandaDeposit. That includes:

• Unpaid rent owed at the end of the tenancy
• Damage beyond normal wear and tear — holes in walls, broken fixtures, stained carpets, damaged appliances
• Unpaid utility bills the tenant was responsible for under the lease
• Cleaning costs needed to restore the unit to its move-in condition, beyond ordinary cleaning
• Any other charge lawfully deductible from a deposit under applicable state and local law

Your coverage amount equals the deposit you would otherwise have required, so there is no gap in protection compared to what you're normally used to.

#What isn't claimable:

PandaDeposit mirrors a security deposit, so it follows the same legal limits a cash deposit does:

• Normal wear and tear — faded paint, worn carpet in walkways, minor scuffs. Most state laws prohibit deducting these from a deposit, so they can't be claimed here either.
• Amounts above the coverage limit — just as you couldn't deduct more than the deposit you were holding.
• Charges prohibited by state or local law — if it couldn't lawfully come out of a cash deposit in your jurisdiction, it isn't claimable.

PandaDeposit covers move-out losses, the way a deposit does. It is not rent default protection during the tenancy — for that, see our lease guarantee product.

Many landlords pair the two.

#Frequently asked questions:

Is my protection really the same as holding cash?

Essentially, yes. The guaranteed amount equals the deposit you would have collected, and every charge you could lawfully deduct from that deposit is claimable.

Does the tenant still have skin in the game?

Yes. This is a deposit replacement, not damage insurance for the tenant. If you file a valid claim, PandaGuarantee pays you and the tenant reimburses PandaGuarantee. Tenants have the same financial incentive to return the unit in good condition as they would with cash on the line.

What documentation do I need to file a claim?

The same records you'd prepare to justify a deposit deduction; an itemized statement of charges.

We require tenants to record detailed move-in and move-out videos showing the condition of the apartment. Unless there is a claim of damage that is clearly not visible in the move-out video (A claim for hole in the wall where there clearly isn't one), we will most likely not require supplementary documentation for the claim.

If the tenant does not record a move-out video as required by their agreement with Panda, then your claim will be automatically approved.

How fast are claims paid?

Claims are approved and paid within two business days of receiving a valid claim.

Can I require PandaDeposit, or is it the tenant's choice?

In most circumstances, you will present PandaDeposit as an option that replaces the normal security deposit. If you wish to require the tenant to get PandaDeposit instead of a cash deposit, you will need to inform them of this before they apply.

What if the loss exceeds the coverage amount? You retain all your normal legal remedies against the tenant for amounts above the coverage limit, exactly as you would if a loss exceeded a cash deposit.