As the affordable housing crisis continues to put pressure on cities across the U.S., many investors are turning to innovative solutions like PadSplit to meet the growing demand for cost-effective rental options. If you’re considering investing in coliving spaces, it’s crucial to weigh the pros and cons carefully. In this post, we’ll address some of the most common objections to investing in PadSplit — and explain why you might want to take a second look.
Key Takeaways
- Liquidity Concerns: PadSplit properties are in high demand, with a dedicated marketplace for investors looking to buy and sell, making it easier to liquidate your investment.
- Zoning Issues: Most PadSplit properties face minimal zoning challenges, and understanding local regulations can prevent potential issues.
- Investment Risk: With an 80% occupancy rate and robust market analytics, PadSplit offers a reliable investment opportunity with manageable risks.
- Coliving’s Future: Coliving is not just a trend; it’s a sustainable solution to the increasing demand for affordable housing.
- Filling Vacancies: PadSplit handles marketing and member screening, ensuring high occupancy rates and reducing the burden on property owners.
- Neighbor Relations: Proper management practices help maintain good relations with neighbors and integrate PadSplit properties into communities seamlessly.
1. “I’m worried about liquidity.”
It’s a common concern to feel uneasy about being able to sell your investment when you need to. However, properties operated as PadSplits are in high demand, with a growing marketplace specifically for these listings. Investors are actively seeking properties that are already functioning as PadSplits, so if your property is priced competitively, you can usually sell it relatively quickly. As one of the fastest-growing investment strategies in real estate, PadSplit properties offer a clear path to liquidity.
➡️ Discover existing PadSplit homes-for-sale that are already generating revenue
➡️ Learn more about the growing demand for coliving investments
2. “Conflicts between tenants will be an issue.”
Concerns about conflicts in shared living environments are valid, but PadSplit has built-in solutions to address them. We have established comprehensive house rules and member guidelines to help create a harmonious living experience. Our dedicated customer success team and regular house inspections by hosts help keep potential conflicts to a minimum and swiftly manage any issues that arise.
Note: Selecting an experienced coliving property manager is crucial to reducing risks and enhancing the operational success of a coliving property, ensuring smooth operations, tenant satisfaction, and optimal returns on investment.
➡️ Discover how PadSplit’s built-in solutions are designed to enhance residents’ satisfaction
3. “Zoning issues will be a problem.”
While zoning regulations can be intimidating, they rarely impact PadSplit properties in a significant way. Most cities have long-standing zoning laws, and many investors have successfully navigated these challenges before you. With only a small percentage of PadSplit properties facing zoning issues, choosing the right property and understanding local regulations can make all the difference. Again, choosing an experienced property manager significantly lowers the risk of code enforcement problems that could escalate into zoning issues.
➡️ Explore PadSplit’s resources on zoning and permitting
4. “It’s too time-consuming to manage.”
Managing a PadSplit property does require some effort, but the returns can make it well worth your time. With over 15,000 rooms currently in operation, our model proves that with the right management, these properties can generate 2-3 times the revenue of traditional rentals. Plus, PadSplit provides tools, resources, and support to streamline the management process, making it easier for you to handle multiple tenants effectively.
5. “The risk is too high.”
While every investment carries some risk, PadSplit’s track record speaks for itself. Currently, 80% of PadSplit rooms are occupied by paying members, and the platform’s historical data shows consistent revenue for investors. PadSplit also offers valuable market analytics to help you price your rooms competitively and reduce vacancy risks.
➡️ Learn how to price your PadSplit rooms competitively
6. “Coliving is just a passing trend.”
Coliving is more than a trend; it’s a solution to a growing economic problem. With more people earning less than $60,000 per year, the need for affordable and flexible housing is on the rise. Co-living spaces like PadSplit address these needs, proving that they are here to stay as a long-term solution in the rental market.
➡️ Understand the long-term potential of coliving investments
7. “I won’t be able to fill the rooms.”
Worried about vacancies? PadSplit takes care of the marketing for you, advertising on major platforms like Google, Facebook, and Rent.com to reach a wide audience. Our robust screening process ensures that only qualified members occupy your rooms, leading to high occupancy rates across our properties.
➡️ See how PadSplit markets and screens potential members
8. “I’m new to coliving investments.”
If you’re new to this type of investment, don’t worry. PadSplit provides comprehensive support to guide you through every step of the process, from property selection to management best practices. Our active community of seasoned hosts is also available to share their insights and help you get started on the right foot.
➡️ Join PadSplit’s community of investors and learn from the experts
9. “Neighbors will have complaints.”
Concerns about neighbor relations are understandable, but they can be managed effectively with the right approach. PadSplit properties in high-rental areas tend to integrate well into the community, and our tenants often stay for over eight months, fostering stability. Good property management, including proper parking and trash control, goes a long way in maintaining positive relations with neighbors.
Note: Utilize PadSplit’s data insights and the local expertise of our account executive team to find the ideal property for coliving.
PadSplit is a proven model for high returns
While every investment comes with its challenges, PadSplit offers a proven model that addresses the most common concerns faced by investors. With its tools, support network, and robust marketplace, PadSplit provides a unique opportunity to achieve high returns while making a positive impact on the affordable housing crisis.
If you’re looking for a socially responsible investment with the potential for significant financial gain, PadSplit might just be the solution you’ve been searching for.
➡️ Calculate your potential earnings.
Ready to explore further? Learn more about investing with PadSplit and how to get started today.
