Executive summary
A strategic conversion of a Trinity Place property in Tampa, Florida, from a traditional single-family rental to a PadSplit coliving space resulted in a 12.2% unlevered Return on Capital (RoC). This transformation not only enhanced profitability but also contributed to the local affordable housing solution.
Initial property overview
- Location: Trinity Place, Tampa, FL
- Original Configuration: 3-bedroom single-family home
- Purchase Price: $305,000
- Initial Annual Rental Income: $31,200
Transformation strategy
Renovation investment
- Total Renovation Cost: $72,200
- Total Capital Investment: $377,200
- Scope: Conversion to 8-bedroom coliving space
- Purpose: Maximize living space while maintaining comfort and privacy
Financial performance comparison
Pre-conversion (Single-family rental)
- Annual Income: $31,200
- Operating Costs: $11,500
Post-conversion (PadSplit coliving home)
- Gross Annual Income: $92,000
- Effective Gross Income: $82,500 (after vacancies/concessions)
- Operating Costs: $24,500
- Platform Fees: $12,000
- Net Annual Profit: $46,000
Key performance metrics
- Annual unlevered RoC: 12.2%
- RoC Improvement: +7.5 percentage points vs. traditional rental
- Income Multiplier: 2.8x increase in profit
- Additional Annual Profit: $29,400
Value proposition
For property owners
- Enhanced financial returns
- Significantly higher rental income
- Improved property utilization
- Reduced vacancy risk through PadSplit’s tenant placement
- Operational benefits
- Streamlined management through PadSplit platform
- Professional tenant screening and placement
- Structured payment collection system
- Maximizing tax advantages through:
- standard deduction of the renovation
- Cost segregation
- Reducing tenant risk through diversification across multiple units/tenants to minimize the impact of potential non-payment or eviction scenarios
For residents
- Affordable living solution
- Furnished private rooms
- All-inclusive pricing (utilities and internet)
- Flexible weekly payment options
- Community benefits
- No long-term lease commitments
- Simplified application process
- Built-in community environment
Success factors
- Strategic property selection
- Prime Tampa location
- Suitable property layout for conversion
- Strong local rental market
- Efficient space optimization
- Thoughtful bedroom conversion
- Maintenance of common areas
- Balance of privacy and community spaces
- Professional management
- PadSplit platform integration
- Systematic tenant screening
- Regular maintenance protocols
Market impact
This conversion demonstrates the viability of coliving as a solution to:
- Address affordable housing shortages
- Maximize property owner returns
- Create sustainable community-focused living spaces
Conclusion
The Trinity Place property transformation showcases the potential of coliving conversions in today’s real estate market. Through strategic renovation and partnership with PadSplit, the property achieved significantly higher returns while contributing to affordable housing solutions in Tampa.
