Key Takeaways
- Don’t aim for perfect tenants—focus on smart, real-time decisions that align with your mission.
- Over-filtering kills your funnel. Looser criteria = more bookings and less vacancy.
- Filtering out the very people you’re here to help runs counter to your mission.
- Screen for real risks, not just red flags—imperfect doesn’t mean unreliable.
- Build flexible systems that support people, not rigid walls that keep them out.
- People deserve the benefit of the doubt, especially when they’re trying to rebuild or get ahead. Many of your future best residents will come from less-than-perfect situations.
- Balance heart and hustle—profit follows when you lead with purpose.
Being a PadSplit host isn’t about selecting the “perfect” tenant—it’s about making real-time decisions that support your mission, keep your rooms full, and provide a great living experience for those who truly need it. The most successful hosts have mastered the art of being discerning without being exclusionary. They recognize when to be selective and when to be inclusive, creating a profitable equilibrium that serves both their business goals and their residents’ needs.
Here’s how you can achieve this delicate balance and optimize your success as a host.
1. Know your core mission
You’re not running a luxury apartment complex—you’re providing affordable, flexible, and secure housing to people who often have limited options. That’s the heart of your business.
Applying traditional real estate filters—like 3x income rules, credit score minimums, or strict employment history—can feel like you’re protecting your investment, but they often push away your real audience. PadSplit is part of the solution to the housing crisis. Filtering out the very people you’re here to help runs counter to your mission.
🔑 Keep this front and center: you’re in the business of access, not exclusion.
2. Don’t over-filter—you’ll kill your funnel
One host, Franco, who owns his own PadSplit properties and manages over 600 units, shared an experiment he ran using stricter screening criteria: applicants were required to earn at least twice the rent, submit full income documentation with tax returns, and pass verification checks. The result? Over 90% of applicants were rejected or dropped off.
This is a volume game—more restrictive filters mean fewer bookings, longer vacancies, and lost revenue.
💡 Insight: Many PadSplit members are hourly workers, freelancers, students, or gig economy earners. They may not look great on paper—but they pay, they stay, and they’re often dependable when given a chance.
3. Understand your audience
PadSplit members aren’t luxury renters—they’re people who need affordability. Your typical member may work in food service, logistics, hospitality, healthcare, or retail. Many are rebuilding their finances, attending school, or trying to get back on their feet.
This isn’t just workforce housing—it’s real-world housing for real people. Your acceptance criteria should reflect who your renters truly are—not who you wish they were.
💡Tip: If you screen like you’re renting a condo in Midtown, your rooms will stay empty.
4. Focus on real risks, not red flags
A clean background check doesn’t always equal a good tenant, and a rough history doesn’t always mean trouble. The key is to focus on active, material risks, not automatic disqualifiers.
What to actually look for:
- Is the applicant using a real ID?
- Do they have a verifiable income source?
- Are they trying to commit fraud?
Remember: One bad experience doesn’t mean every applicant is a risk
If you’ve had a bad experience with a resident—missed payments, house tension, or property damage—it’s normal to want to tighten the reins. But don’t let one or two tough situations cause you to overcorrect.
Every housing provider has had a rough resident or two. It comes with the territory. But letting fear drive your decisions can quickly lead to a closed-off funnel, empty rooms, and missed income.
🎯 The goal isn’t to avoid all risk—it’s to manage it smartly.
Here’s how to keep a healthy perspective:
- Separate behavior from background. One person’s actions shouldn’t disqualify another member with similar circumstances. Don’t let one bad apple make you close the orchard.
- Traditional filters miss real problems. Bernie Madoff would’ve passed every credit check. Elizabeth Holmes had a spotless resume. A “clean” background doesn’t mean someone’s trustworthy—and an imperfect one doesn’t mean they’re not.
- Use past experiences to strengthen your process, not harden your mindset. If something went wrong, tweak your onboarding steps, communication protocols, or house rules—not your entire acceptance criteria.
- Stay human. People deserve the benefit of the doubt, especially when they’re trying to rebuild or get ahead. Many of your future best residents will come from less-than-perfect situations.
Bad experiences happen. But good ones happen more often—especially when you stay open, prepared, and mission-driven.
What to look past:
- Imperfect credit
- Past mistakes (especially if they’re on a path to recovery)
- Non-traditional work or income sources
✅ Best Practice: One host accepted a member with a record of fraud—after speaking with the member and their parole officer. The member has since been a model resident.
5. Build a system, not a fortress
Systems and processes matter—especially at scale. But be careful not to turn your SOPs into stone walls.
You don’t need to personally interview every resident. But someone on your team—whether a property manager or point-of-contact—should maintain communication and resolve issues quickly. Engagement = retention.
🤝 If your members feel genuinely valued, they’ll reciprocate with respect and consideration for your property.
7. Accept imperfection and stay engaged
Some of your best residents won’t fit neatly into a box. Maybe they’ve switched jobs recently, or they’re just scraping by. If they’re respectful, pay on time, and fit the house culture—they’re worth a shot.
And if it doesn’t work out? That’s okay. Let them know kindly and directly, and point them toward a better option. PadSplit is flexible for a reason with plenty of other rooms on the platform—use that flexibility as a strength, not a crutch.
🛠 PadSplit is not a plug-and-play model. It’s a people business.
8. Keep the mission + math in balance
You’re not just running a business. You’re solving a problem. The mission is to provide dignified, affordable housing—and the math works best when you do that well.
High occupancy and long tenure come from residents who feel respected, supported, and informed. That doesn’t mean ignoring red flags—it means aligning your screening process with the reality of who you serve.
💡 The most profitable hosts don’t chase perfection—they deliver consistent value to people who need it most. Learn more about how accepting more member booking requests can increase your revenue.
Being a PadSplit host means walking the line between heart and hustle. When you focus on people, systems, and sustainable growth—not perfection—you’ll build something that lasts.
📹 To learn more, watch The Profit Drain No One Talks About in Coliving.
