In a time when the traditional rental model is facing new challenges—rising interest rates, shifting renter expectations, and tighter margins—real estate investors are increasingly turning to coliving as a smarter, more flexible solution. By renting out individual rooms rather than entire units, investors can maximize occupancy, increase monthly income, and tap into a growing demand for affordable housing.
At PadSplit, we’ve seen firsthand how coliving can turn underperforming properties into high-yield assets. Here’s how investors are boosting their returns—and why coliving isn’t just a trend, but a future-forward investment strategy.
What is coliving? And why more investors are choosing it
Coliving is a modern take on shared housing. In this model, tenants (often called members) rent private bedrooms in a furnished, fully equipped home, while sharing common areas like kitchens, living rooms, and laundry facilities. Utilities, Wi-Fi, and services are typically included.
For renters, it offers affordability and flexibility. For investors, it means more rent per square foot, faster occupancy, and lower turnover.
Coliving has proven especially successful in high-demand markets like Atlanta, Houston, Dallas, and Tampa—cities where affordable housing is limited, and rental demand remains strong. These metros offer ideal conditions for investors looking to increase cash flow while providing much-needed housing solutions.
Want to see if coliving could work for your rental property? Try our PadSplit earnings calculator to estimate your potential returns.
The financial benefits of investing in coliving
Higher rental income per property
Instead of leasing a single-family home for one monthly rent check, coliving lets property owners earn multiple income streams from the same unit. For example:
- Traditional lease: $1,800/month for an entire 3-bedroom house
- Coliving model: $700/month per room x 3 rooms = $2,100/month
That’s a 17% increase in gross rental income, even before additional benefits are factored in.
“If I didn’t have the cash flow from PadSplit as opposed to regular rentals, I would not be able to afford to live in Spain,” says PadSplit Host Heather Wren.
Curious what other investors are earning with PadSplit? Read a few real host success stories and discover how much more your property could generate.
What about upfront costs?
While converting a home into a coliving space may involve some initial investment—such as furnishing rooms, adding locks, or making minor renovations—many PadSplit hosts find these costs are quickly offset by the increase in monthly rental income. With higher cash flow from the start, most investors recoup their upfront expenses within just a few months.
Better occupancy rates
The demand for affordable housing is surging, especially in metro areas where rents have outpaced wages. Coliving meets this demand by offering:
- Lower upfront move-in costs
- Weekly payment options
- No long-term leases
These benefits attract a wider pool of potential tenants—from gig workers to teachers and students—keeping vacancy rates low.
Reduced turnover and vacancy losses
Coliving tenants often stay longer than expected. When supported by strong community values, well-maintained properties, and responsive management, members value the stability and convenience of coliving. That reduces costly turnover and keeps properties cash-flowing.
Lower maintenance costs with coliving homes
Platforms like PadSplit help investors streamline operations by handling:
- Member screening and placement
- Payment collection and credit reporting
- Conflict resolution and support
With these services, investors can scale their coliving portfolio without the stress of managing dozens of tenants.
How PadSplit helps minimize risk for hosts
PadSplit’s weekly payment model and built-in screening process help minimize delinquencies, while our team manages conflict resolution and member support. That means fewer late payments, reduced turnover, and less stress—so hosts don’t carry the burden of traditional landlord headaches.
Coliving offers a hedge against economic shifts
As traditional rental margins get squeezed, savvy investors are rethinking how to make every square foot count. Coliving is more than just a way to increase income—it’s a strategy for maximizing space utilization, creating housing equity, and contributing to the solution for the affordable housing crisis.
Coliving also offers a hedge against economic shifts. In downturns, renters look for more affordable options, making coliving even more attractive. In strong markets, higher occupancy and cash flow drive better returns and valuations.
Curious how much more you could earn? Click here to use our calculator to see your property’s potential.
Why PadSplit is the coliving partner of choice
At PadSplit, we specialize in helping real estate investors unlock the full potential of coliving. Our platform handles the logistics, compliance, and marketing—so investors can focus on growing their portfolios.
With PadSplit, hosts benefit from:
- Up to 2x the rental income vs. traditional leases
- Access to a large pool of pre-screened renters
- Weekly payments and fewer delinquencies
- The opportunity to provide affordable housing in the local community
Investing in coliving means creating community impact
What sets coliving apart from traditional real estate investing isn’t just the higher returns—it’s the ability to do well and do good.
By offering flexible, affordable housing in high-demand areas, PadSplit hosts directly support essential workers, students, and community members who are often priced out of conventional rental options. These are the individuals who keep cities running—teachers, delivery drivers, healthcare aides, retail workers—and coliving gives them a dignified, stable place to call home.
Unlike short-term rentals or high-end units, coliving investments solve a real problem: the growing affordable housing crisis. And when you provide housing that’s clean, secure, and community-oriented, you’re not just filling a room—you’re building resilience and opportunity.
For many PadSplit hosts, that sense of impact becomes one of the most rewarding aspects of the investment. It’s not just about profit—it’s about purpose.
“The money is great, the income potential is absolutely wonderful and better than a lot of other investment opportunities that we’ve had, but if you really care about people, then the reward of what you’re doing to help others is far greater than the monetary benefits,” says Regan Maki, a PadSplit host in Atlanta.
Common questions from new hosts
What if my room doesn’t rent?
PadSplit helps hosts price rooms competitively based on market data and member demand. We also provide projections and marketing support to minimize vacancy.
How do I handle tenant issues?
PadSplit manages conflict resolution, member support, and evictions when needed—so you don’t have to step in directly.
What about damages or maintenance?
Hosts remain responsible for standard property maintenance, but our team provides guidance on best practices and supports member accountability through house rules and reporting tools.
Can I exit or switch back to traditional renting?
Yes. While we encourage a 12-month commitment to maximize returns, hosts retain full control of their property and can exit with proper notice.
Why coliving is a smarter investment strategy for 2025 and beyond
Coliving isn’t just a win for renters—it’s a smart, future-proof strategy for real estate investors looking to increase cash flow and reduce risk. By turning single-family homes or multi-unit properties into high-occupancy, community-oriented spaces, investors can achieve stronger returns with less volatility.
With the right platform and operational support, coliving becomes more than feasible—it becomes a standout investment.
Whether you’re a seasoned investor or just getting started, coliving with PadSplit offers a unique blend of higher rental income, streamlined management, and meaningful community impact.
Reach out today for a free property assessment—or try our earnings calculator to see what your next investment could look like. There’s never been a better time to turn your property into a powerful asset.
Start earning more from your rental property—list with PadSplit today and unlock higher returns with less hassle.
