Moh Choudhury, a real estate investor and founder of Turnkey Associates, sought an exit plan for his Airbnb properties due to increasing regulatory challenges and unfavorable media perceptions. While initially investing in multifamily properties in 2020, his exploration of short-term rentals, driven by the need for contingency plans for his Airbnbs, ultimately led him to discover PadSplit.
What started as a backup plan quickly transformed into a passionate pursuit as he recognized the unique value proposition of PadSplit in addressing the affordable housing crisis.
“A lot of the stigma around PadSplit from family and friends was, ‘How are these communal environments going to work?’ It was funny pointing the finger back at them, saying, ‘This is not uncommon. It’s exactly what we do in New York City. Everyone in Manhattan lives with roommates, and it is subdivided into several mini units.’ That’s the future of big cities,” says Moh.
Phoenix: A Unique Opportunity for PadSplit
Moh chose to focus on Phoenix, Arizona, due to the city’s rapid economic growth, mirroring the challenges he observed in his hometown of New York City. He recognized the need for affordable housing in a booming market and saw PadSplit as a crucial part of the solution.
In less than 45 days of hearing about PadSplit, Moh successfully listed his first PadSplit. His approach involved creating an unparalleled experience for tenants by offering amenities and attention to detail that set his properties apart. The result? 100% occupancy within the first month.
The Human Connection of PadSplit
For Moh, one of the surprises of becoming a PadSplit Host was the deep connection he forged with his PadSplit Members. Despite the churn inherent in real estate, Moh’s Members expressed gratitude for the attention and care they received. This unexpected bond between Host and Member highlighted the positive impact of PadSplit beyond mere affordability.
“I’ve connected with a lot of the Members because when I first get into investing in a new asset class, I try to understand who my customer base is, and they were just some of the most appreciative people, especially for the small details. They’ve never been treated this way; they’ve never gotten this level of attention, especially for something that’s affordable housing. The connection with the Member is something I didn’t expect,” says Moh.
Moh notes that profitability in classes like Airbnb has shifted. The focus is now on cost efficiency and protecting margins rather than enhancing the tenant and guest experience. This shift creates a disconnect as attention to detail diminishes when Hosts prioritize margins and operational efficiency over investing in a superior guest experience.
25-30% Cash-on-Cash Return with PadSplit
For Moh, the numbers matter, especially in democratizing real estate investment for family and friends. With an impressive 25-30% cash-on-cash return with PadSplit properties, Moh envisions a future where he can scale his PadSplit portfolio, aiming for one new property each month.
Moh feels the common complaint with Airbnb is that guests no longer receive the same experience as before, with Hosts facing challenges due to higher interest rates and increased costs, coupled with Airbnb’s 15% fee.
Moh believes that from an investor perspective, the excitement around PadSplit represents the next generation of disruption in real estate, aligning incentives for Hosts and Members. This alignment of benefits, reminiscent of successful disruptors like Amazon, where both service providers and consumers benefit mutually, positions PadSplit for significant growth.
PadSplit vs Airbnb
While Airbnb demands significant time and resources as a business, PadSplit aligns incentives for both landlords and tenants, fostering a mutually beneficial relationship and streamlining operational costs.
“Airbnb is a business on its own. It’s multifactorial, dealing with cleaners, guests, upgrading experiences, their algorithm, and their lack of transparency. You definitely save a lot of time on PadSplit; I don’t think Airbnb and PadSplit are comparable assets – Airbnb has become its own asset class at this point, it shouldn’t be considered as real estate investing,” says Moh. “Doing something as challenging and tumultuous as Airbnb has made it very easy to transition to PadSplit.”
A Heartwarming Full Circle
In a touching moment, Moh reflects on sharing his PadSplit journey with his father, connecting his dad’s immigrant experience in communal living to the mission of PadSplit. It became a full-circle moment, bridging generational struggles and aspirations, and showcasing the power of PadSplit to positively impact lives.
“Dad’s hesitation turned into understanding. It clicked for him that PadSplit is all about supporting hardworking Americans trying to save on housing and transition to the next stage of their life. That ‘aha’ moment was pretty heartwarming,” says Moh.
With mid-term rentals, you can earn an average of 33% more revenue, reduce your workload, and reach 80% occupancy. If you want to learn more about becoming a PadSplit Host, reach out to PadSplit today.
