I'm looking into a platform named Pad Split as I have a property that would probably work well for that in Florida. I'm assuming that I could probably do an STR in Lakeland Florida, but don't think because of the location that I'd get good revenue.
Who can give me some insight as to whether doing something like this or mid term for nurses has been beneficial for a 5 bedroom 3 bath house. It's not large at about 1900 sqf, but not small either.
What other platforms good and bad can you suggest that I investigate? Thanks
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y
I agree with Michael, nurses are not likely to want to split a house like this. Maybe a 2 bedroom split with one other person, but not this many room mates.
A few things to thing about - many counties and cities limit the number of unrelated occupants to 3 or 4 people, no matter how large the house, so check to see if there is a limit in your area.
Parking is another problem. Most of these house shares are in big cities where renters don't usually have vehicles. If yours will have them, is there enough parking on the property? Or are your renters going to anger the neighbors by where they have to park? I live in a cul-de-sac, and had a home share situation next to me for years. 5 guys living in a 4 bedroom house, with 7 vehicles between them. Their vehicles were always out in the street in the way of the automatic trash trucks on trash day.
If you look at the PadSplit website, they put up walls and convert the living room and dining room into more bedrooms, to fit even more people and get those high incomes. They also have strict rules for renters about sharing the kitchen, cleaning, etc. with monetary penalties for not complying. If you're doing this yourself, it will require a lot more involvement by you or a manager.
You're thinking the right way for sure. For a 5 bed, 3 bath house, it may be difficult to get random travel nurses to all share a 5 bedroom place. I personally have never done it, so I'm not saying it can't be done, but may have to vacancy issues. What I'd recommend is checking out furnishedfinder.com. This site is the primary website that travel nurses use to find MTR's. Check out the map and see what other properties are being listed for.
Personally, I think a larger home with 5 beds, is set up perfectly for a rent by the room strategy.
If you do want to look at an STR option, check out AirDNA.com. They can give you some stats on your area as well for STR's. Also, check out the airbnb map for your area to see what your competition would be and what people are charging.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Gregg Camp, rent-by-the-room investments can be absolute cash cows, however, PadSplit is not meant for traveling nurses. PadSplit structures weekly leases per room. Traveling nurses are paid well, I would not expect them to share a living space with others. Rent-by-the-room tenants are more so catered toward working-class/blue-collar or young professionals looking for cheap rent. With any rent-by-the-room asset, you need to hire resourceful management. PadSplit is directly involved in tenant screening and placement but does not manage the property. On a final note, please verify that there is a demand for this unique investment approach in your market. Alcove is another company that is similar to PadSplit but I'm not sure if they operate in your market. Hope this helps!
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y
I agree with Michael, nurses are not likely to want to split a house like this. Maybe a 2 bedroom split with one other person, but not this many room mates.
A few things to thing about - many counties and cities limit the number of unrelated occupants to 3 or 4 people, no matter how large the house, so check to see if there is a limit in your area.
Parking is another problem. Most of these house shares are in big cities where renters don't usually have vehicles. If yours will have them, is there enough parking on the property? Or are your renters going to anger the neighbors by where they have to park? I live in a cul-de-sac, and had a home share situation next to me for years. 5 guys living in a 4 bedroom house, with 7 vehicles between them. Their vehicles were always out in the street in the way of the automatic trash trucks on trash day.
If you look at the PadSplit website, they put up walls and convert the living room and dining room into more bedrooms, to fit even more people and get those high incomes. They also have strict rules for renters about sharing the kitchen, cleaning, etc. with monetary penalties for not complying. If you're doing this yourself, it will require a lot more involvement by you or a manager.
@Gregg Camp, rent-by-the-room investments can be absolute cash cows, however, PadSplit is not meant for traveling nurses. PadSplit structures weekly leases per room. Traveling nurses are paid well, I would not expect them to share a living space with others. Rent-by-the-room tenants are more so catered toward working-class/blue-collar or young professionals looking for cheap rent. With any rent-by-the-room asset, you need to hire resourceful management. PadSplit is directly involved in tenant screening and placement but does not manage the property. On a final note, please verify that there is a demand for this unique investment approach in your market. Alcove is another company that is similar to PadSplit but I'm not sure if they operate in your market. Hope this helps!
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
I've seen some pretty crazy PadSplit configurements that get great occupancy. You'd be surprised. For the right price, people will rent, especially if it's necessary for work. I think the situation that you described in your post would not be too tight.
The location isn't good for STR. I think it will be fine for Pad Split and am moving forward with them. Lenders don't know what the heck to do.
hi Gregg did you go with Padsplit? Considering doing this on a new duplex but wondering about the wear and tear it has on a property. Have you had tenant issues such as nuisance calls or maintenance irks?
@Gregg Camp, rent-by-the-room investments can be absolute cash cows, however, PadSplit is not meant for traveling nurses. PadSplit structures weekly leases per room. Traveling nurses are paid well, I would not expect them to share a living space with others. Rent-by-the-room tenants are more so catered toward working-class/blue-collar or young professionals looking for cheap rent. With any rent-by-the-room asset, you need to hire resourceful management. PadSplit is directly involved in tenant screening and placement but does not manage the property. On a final note, please verify that there is a demand for this unique investment approach in your market. Alcove is another company that is similar to PadSplit but I'm not sure if they operate in your market. Hope this helps!
On this note, can someone describe their experience working with Alcove?
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2y
@Terry Atwater, to be upfront, I'm not familiar with Alcove. However, another rent-by-the-room company called HomeRoom does an excellent job souring and managing tenants. They will even provide a proforma and will assist with deal analysis. I would say PadSplit is geared toward the working class/blue-collar, while HomeRoom is more focused on servicing young professionals seeking cheap rent. If you are interested in learning more about either rent-by-the-room company, I'd be happy to discuss.
@Terry Atwater, to be upfront, I'm not familiar with Alcove. However, another rent-by-the-room company called HomeRoom does an excellent job souring and managing tenants. They will even provide a proforma and will assist with deal analysis. I would say PadSplit is geared toward the working class/blue-collar, while HomeRoom is more focused on servicing young professionals seeking cheap rent. If you are interested in learning more about either rent-by-the-room company, I'd be happy to discuss.
Michael, just delving into research on the co-living model. So far, I'm finding just as much positive as negative so I'd love chatting from a boots on the ground investor actually doing this who is not actively trying to sell something. If you are free next week, I'd love to convo.