PadSplit Review [2024]: Add More Rooms and Income to Your Rental

Do you want to learn how to invest in real estate, but you’re leery of the hassles of marketing, management, screening applicants, collecting rent, and resolving tenant disputes?

PadSplit can help you create more rooms (and potentially more rental income) in your rental property by helping connect you with a contractor who can build additional rooms. The platform also advertises and books rooms and processes weekly payments for tenants online in exchange for a cut from property owners.

We'll look at how PadSplit works, who can use it, how much you can earn, common questions, and how to sign up and start renting rooms.

What is PadSplit?

PadSplit offers a marketplace where rental property owners can list rooms for rent for long-term stays. The startup was created in 2017 by Atticus LeBlanc to address the affordable housing crisis by leveraging housing as a vehicle for financial independence. Since its inception, PadSplit has created more than 2,500 shared housing units and provided homes to over 4,800 people.

PadSplit works with property owners to develop underutilized space in existing rental properties. PadSplit also reports weekly payments through rent reporting service Esusu so renters (called members) can build their credit scores.

Members live in a rental unit similar to a rooming house and pay just one bill each week and receive several incentives, including:

• A private furnished room
• Covered utilities (including Wi-Fi)
• Free credit reporting
• No minimum credit score needed
• No large security deposit

How does PadSplit work?

PadSplit's main priority is to help rental home owners add additional rooms to their property. After you create a hosting account, the platform will help you identify where additional rooms can go and can introduce you to contractors to build them out.

PadSplit's website outlines three main phases a property must undergo before readying for tenants: pre-renovation, conversion, and listing preparation. PadSplit helps with staging your property and adding the right features, such as smart locks, Wi-Fi, heating, air conditioning units, fire stops, and more.

PadSplit will also give you suggestions on how to list your rental property, such as adding parking, and pricing rooms. For example, PadSplit suggests choosing themes for naming bedrooms using neutral words like groups of states, colors, or types of flowers.

Resident management

PadSplit markets runs background checks and verifies the employment and income of potential members. Applicants must:

• Be 18 or older
• Undergo a criminal background check — those with felony convictions in the past seven years will require additional review
• Not have had more than two evictions in the past seven years
• Verify their identity by a third-party provider via valid IDs and Social Security numbers
• Show proof of income or pay membership dues upfront

PadSplit takes care of all resident management, including tenant screening and rent collection calls. PadSplit also handles ongoing resident management involving phone and chat support, points of escalation, product support, and member issues.

PadSplit Turnkey

PadSplit also offers a turnkey service to help real estate investors look for rental properties to buy in their area. PadSplit team members can then hire and manage contractors to make renovations; list your property and rooms for rent; and manage move-ins, move-outs, and property management and maintenance.

Who can use PadSplit?

Currently, members 18 years of age or older who live in the following states and cities can take advantage of PadSplit:

• Florida: Jacksonville, Tampa
• Georgia: Atlanta, Austell, College Park, Conley, Decatur, Douglasville, Ellenwood, Fairburn, Forest Park, Jonesboro, Lithonia, Mableton, Marietta, Morrow, Rex, Riverdale, Smyrna, Snellville, Stonecrest, Stone Mountain, Union City, Woodstock
• Indiana: Indianapolis
• Louisiana: New Orleans
• South Carolina: Spartanburg
• Texas: Dallas, Pasadena, Fort Worth, Houston
• Virginia: Colonial Heights, Petersburg, Richmond
• Wisconsin: Plover

You must have a property optimized for high bedroom count, multiple bathrooms (no more than four bedrooms can share a bathroom), a low-maintenance yard, and access to parking and public transit.

How much can you earn with PadSplit?

PadSplit offers a calculator you can use to estimate how much you could earn by adding more rooms to your property. It also takes into account your location and breaks down your maintenance and other costs. In one example of listing with PadSplit, converting a four-bedroom unit to a seven-bedroom unit would result in a net income increase from $723 to $2,259.

Keep in mind that these numbers will change based on property costs, location, and changes in the rental market. PadSplit cannot guarantee you will achieve these results with your particular property.

Managing your rental business expenses

Getting your spare rooms ready to rent might require some spending. Here's an excellent business credit card we recommend:

Common questions about PadSplit

How to sign up for PadSplit

You can sign up as a host on PadSplit.com. You must certify that you are 18 or older and agree to the terms of use and privacy policy.

PadSplit then moves you through three general steps:

1. Schedule a call. In this call, PadSplit gets to know you and your property.
2. Get your property ready. The PadSplit team introduces you to contractors who can help you split your room to help you earn more income.
3. List your rooms. The PadSplit platform displays your home to potential members and screens them.

Alternatives to PadSplit

If you're learning how to invest in real estate and you want another entity to handle all member management, marketing, collections, disputes, and the challenges inherent in short-term rentals, PadSplit might make sense for you. Other co-living platforms similar to PadSplit include Common and WeLive.

Vacation rentals like Vrbo or Airbnb might also be an option for you if you don’t have a property you can split into multiple units. Get more ideas for bringing in some extra cash in our how to make money guide and check out some of the best side hustles.