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…..”🫣

[Jay Hinrichs]

Quote from @Don Konipol:

Quote from @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…..”🫣

This doesn’t answer your question directly, but the whole concept is very close to the old time “rooming house”.  More business than investment. Unless you ow. The real estate and lease the property to an operator.  Hiring a manager or Pad Split still means you’re in the BUSINESS of running a rooming house. 

I personally don’t want to be in the BUSINESS of running a consumer service.  I want INVESTMENTS.  If and when someone, or a reliable company comes up with a deal to fully manage a single room rental property for me then I’ll look at the profitability, ROI, and risk and consider it.  But I don’t want to trade my time managing a business for a relatively small net income.

The mistake many people make is comparing a real estate investment returns with a real estate business returns.  They aren’t comparable. 

I have funded two  one in ATL and one in Dallas  ATL was a nightmare.. Dallas my client cant get a refi.. I think the property is working OK  but agree these are rooming houses nothing more. Personally a big pass for me going forward on funding.