Hi Travis, I'm in Atlanta the home town of padsplit's start. Am in a group where members might be running in the range of 100 doors (x 3-5 rooms each) of padsplit. I don't have any padsplit though for reasons I'll tell.
You will be mostly wrong assuming padsplit is lower effort, hours / week managing vs airbnb. Your time running an active business of padsplit (or DIY rent by the room) varies per week. Some weeks no effort, others when you need to "put out a not working out tenant" more work. The early days padsplits operations process tried to run uusing hotel tenancy laws, that has fallen by the wayside due to magistrate court/fitting into a standard eviction process via magistrate court. So tenants that don';t work out can be stuck in a room for 2 months while the slow eviction process works through. Airbnb you just call the police and they are gone.
Padsplit simililarily to airbnb, site selction is very important. Only a few houses will work for either; parking, isolation from neighbors etc. IE its a very bad idea to attempt rent by the room with close neighbors, or in a nicer HOA neighborhood where tenants are seen walking streets to the bus/mass transit. Depending on your location, more folks will apply for renting by the room if you are on/near mass transit. Padsplit can still work in the burbs, but you need lots of parking and space to the neighbors.
Padsplit is only up and running their francise in the bigger cities. Otherwise you are DIY running a rooming house and its alot of work screening and managing the 2am fights, tenants leaving their trash in the kitchen iratating the other tenants.
Its all doable, just the actual amount of hands on is more then you might think, even if padsplit is in your area and is willing to take your house into their system.
Risks; zoning / code enforcement for running a rooming house, more then the county limits on un-related adults in a rental. In Atlanta area its 3 unrelated adults. Code enforcement in Atlanta area is lower since the locale's realize that padsplit is providing low income housing so code enforcement follows neighbor complaints or repeated police visits.
Your experience maybe smooth and easy, and I hope it is!! Same with Airbnb can be smooth and easy. Both need systemitization!!!!
What my friends say is the $$ advantage over 12 mo term rent is around 3x higher net. There is up front costs like dividing the living room into 2 more bedrooms etc plus the simplier furnishing. Remote control and locable thermostates, water leak detetors and main cut offs. The multi door padsplit operators have alot of home automation they remote control and monitor including cameras on the front door (not interior), remote managed bedroom door locks, front door lock etc etc.
I won't get into either rent by the room or airbnb! We prioritize OUR lifestyle and free time over income. I only own nicer rentals with fenced back yards and rent to families with dogs. I never hear from those folks. :)
Best to all, curt
