Anyone personally have feedback on pad split as a host

[Joe S.]

Does anyone have personal experience turning your property into a rent by the room with pad split?

I’m a little skeptical of taking reviews from the company itself if you know what I mean. After doing some research, I became less convinced than I was to start with. It seems like the real support you would receive from Pad split is them helping find the occupants/tenants And them processing the rent. Any issues it appears will be on the landlord. I stopped taking on any more properties where I would be theProperty Manager. I do have a property that has plenty of parking, seven rooms/bedroom that would and could be a good fit for a pad split layout in my opinion.

After looking at some of the reviews, I became less convinced than ever up into this point. I talked to my property manager that manages a number of straight rentals for us and she was not familiar with  Pad Split. 

One reviewer described it as “section 8 meets Airbnb…..”🫣

[John O'Leary]

Hi Joe,
We’ve worked with several PadSplit investors to secure financing, and while these properties cash flow really really well, they do come with challenges—tenant turnover/issues and being the biggest ones.

One hurdle we've seen is that getting financing can be tricky since PadSplit rentals are still considered non-conforming by most lenders. Many traditional banks won't touch them, and even DSCR lenders will avoid them if the build out is done prior the securing long term debt. That said, we've been able to help investors secure creative financing solutions that work for this model.

If you decide to move forward, just make sure your financing strategy aligns with your long-term goals, and the properties are good fits for Padsplits model.