By Ellis Tran | PadSplit
It’s no secret that the state of the current real estate market leaves much to be desired. Over the course of the last year in most major metro areas, the market has done a complete U-turn, and the standard playbook for real estate investors simply can’t be counted on anymore.
Interest rates have almost doubled over the last 18 months, inventory is low, and supply chain issues are continuing to wreak havoc on the new construction sector. House flipping is not as concrete a strategy as it once was, and sweeping layoffs at many major companies are making those who own and manage rentals feel a little uneasy.
So, what’s a real estate investor to do? Unprecedented times call for innovative solutions, and that’s where PadSplit comes in.
Don’t do what everyone else is doing.
The vast majority of residential real estate owners are doing what everyone else is doing: competing for the 9.5 million small-household renters making more than $50,000 per year—the ones who can afford to live in a traditional apartment or single-family rental.
Yet against the backdrop of economic uncertainty, there’s another—much larger—group of Americans whom real estate investors often overlook: the 14 million one- and two-person households earning less than $35,000 per year.
The rental market’s “sweet spot.”
PadSplit helps rental property owners convert existing single-family homes into co-living spaces, giving low-income workers the ability to live in the communities they serve, while boosting earnings for owners.
For these 14 million low-income renters, traditional housing has barriers to entry that are far too high. In most cases, they must earn at least three times the monthly rent to qualify for an apartment. When the median cost for a studio apartment across the United States is over $1,500 a month, these renters are quickly priced out. Expensive security deposits and credit score requirements only add to the barriers they face.
PadSplit connects these workers to more affordable housing, in the form of individual rooms in co-living properties. Rates are much lower than other housing types, allowing renters, whom we call PadSplit members, to save money and build their credit. We help match members with available rooms in cities across the country, offering instant approvals and next-day move-ins.
Many PadSplit property owners, whom we call hosts, are proud to play a role in solving the affordable housing crisis, but there are also plenty of financial incentives to focus on this underserved sector of the population.
Start earning 2x-3x more on your investment properties.
By being part of the largest co-living marketplace for the workforce, PadSplit hosts can earn more than 2x NOI, simply by converting underutilized space into more bedrooms. PadSplit takes care of advertising, screening, and placing members, and hosts reap the rewards of more consistent income flow and reduced vacancy costs.
Learn more about PadSplit and how you can earn more while also helping provide affordable housing to workers in our communities at padsplit.com.