Robert had flipped a dozen houses over the last few years. His latest project was a home he had planned to sell, but it became his first venture into the PadSplit world. This transition marked a significant shift in his real estate career, and his story is one of both success and community impact.
Failing to sell a flipped property
In December 2022, Robert found himself in a challenging market. Although his house appraised at $485,000, he struggled to find a buyer willing to pay more than $450,000. After trying to sell it for three to five months, Robert didn’t want to give the house away at a lower price. He began exploring rental options and came across PadSplit.
“I wasn’t convinced the concept would work,” Robert admits. However, in April 2023, he listed the house on PadSplit. He decided to rent two bedrooms upstairs and two downstairs without converting the dining room. To his surprise, all four bedrooms were immediately rented within two weeks at $275-$300 per room/week.
A personal approach to managing the PadSplit
Robert’s approach to managing his PadSplit is hands-on and personal. He personally calls every applicant to learn more about them, including where they’ve been renting, why they’re leaving their current place, and the stability of their jobs.
“I try to make the PadSplit how I would want it if I were living there,” Robert says. His residents appreciate his honesty and the effort he puts into making them feel comfortable. He communicates his expectations clearly and strives to ensure they’re satisfied, asking for feedback if he ever falls short of earning a 5-star review.
Exceeding his revenue goals
Robert’s efforts have paid off. Not only has he exceeded his revenue goals, but he also recently renovated the basement to add two additional rooms, including a full suite that rents for $325 a week. His rooms are so desirable that many of his members transfer to other rooms within the home.
The house, which features parking for eight vehicles in the back, has become a sought-after residence for various individuals, from those going through a divorce to people moving into town or looking to save money. Robert works hard to keep the common areas welcoming, ensuring his residents don’t feel confined to their rooms. The house includes a covered porch, a furnished deck, and an office space where residents can work.
“As a San Francisco rental, I’d be lucky to break even. As a PadSplit, I make a nice return,” says Robert.
“I want my members to feel like their PadSplit is home!”
“I want my members to feel like their PadSplit is home!” Robert emphasizes. Each month, he stops by the store to buy candy, which he uses to fill candy bowls in the house, providing a sweet treat for his residents and a reason to check in. The property is always quiet, with no dirty tables or dishes in the sink, a testament to the respect his residents have for the space.
Robert’s neighbors have also embraced the PadSplit conversion. After he sent letters explaining his plans to renovate the home and how it would increase their home’s value by $50,000, the improvements were a welcomed change for the neighborhood.
Clear rules, systems, and expectations have been crucial to Robert’s success. He limits the number of people per bathroom to two and ensures residents have their own towels and kitchen space. He even stocks each bathroom with towels in two different colors to make them easy to distinguish for each resident. With two refrigerators and numbered shelves in the pantry, each resident has plenty of space for their belongings.
Robert is so satisfied with PadSplit that he’s referred eight investors to the platform. He believes it’s a win-win for everyone involved: residents pay less to live in a beautiful home, the city collects more taxes, and hosts see significant returns.
“It’s crazy not to do PadSplit,” Robert asserts. “I hardly do anything to manage the home.”
How other hosts can increase their bookings
Reflecting on his journey, Robert advises other investors to renovate homes thoughtfully. “If you want to cast your net out there and get the best diversity for your house, have smaller rooms for those with lower incomes, have larger rooms or suites for those who can afford $300/week. Some members want larger rooms, a TV, or their own bathroom, and they’re willing to pay for it.”
Leaving behind house flipping for PadSplit
Robert’s experience has been so positive that he’s shifted his focus entirely.
“I’m now no longer flipping houses – I just want to find PadSplit properties,” he says. His goal is to acquire 10 PadSplit properties over the next five years, leaving one house to every kid in his immediate family.
Robert’s story is a testament to PadSplit’s potential, showing how a traditional house flipper can find new success in the shared housing market. To learn more about Robert’s company, Buy Sell Rent Property Solutions, visit https://www.buysellrentpropertysolutions.com
