PadSplit in multifamily properties?

Question

Hey everyone, has anyone here used PadSplit or a similar co-living model in their multifamily properties? Curious about your experiences -pros, cons, and how it’s affected your occupancy/cash flow, what worked and what didn’t? Thanks!

Josh Bowser · Answer

Hey Mia - I think i've seen your name pop up in the Atlanta Padsplit Sphere before!

I've ran the numbers on a bunch of small multis in the past for padsplit clients in the atlanta market, and unfortunately they do not pencil as well as single families. They tend to be layed out very efficiently, smaller units, and can typically only can add a bedroom.. two max. When you factor in padsplit fees, adding back utilities, and increased maintenance you're typically better off with less headaches for the same cashflow as LTR.

I'm sure there are exceptions to this but just my experience!

Michael K Gallagher · Answer

Hey @Mia Blank padsplit is pretty new to our market here in central OH so I've not had muhc exposure to it, but I imagine its like anything else, its down to how you manage and the details.

Padsplit as I understand it is mostly based on the rent by the room strategy so as long as your units were at least 2 beds it would work, if it were me I'd want my units to have at least 2 baths each, better yet a double ensuite.  If it were me I'd also incorporate things like professional cleaning at certain intervals to elevate roomate tensions.  Honestly it could be worth it but to me is likely more "babysitting" and managing people and depending on how well you can do that will dictate your success in my mind.

Mia Blank · Answer

Hey Josh - nice bumping into you again and thanks for the heads up on that!