The profitability of Airbnb has been widely acknowledged, with a staggering 7 million properties listed globally. Investors rushed to capitalize on this lucrative venture, but the scenario changed in 2023 when Airbnb’s decline made headlines, leading to the coining of the term “Airbnbust.”
Airbnb’s global presence, combined with the looming economic downturn, has brought about several challenges, including market oversaturation, a housing crisis, and diminishing revenues for hosts.
Is the Airbnb Dream Dead?
With over 30 years of real estate experience combined and over 3,000 transactions, Brian and Gina decided to focus on building their portfolio with passive income in the vacation rental platform. They began losing $5,000 each month on their Airbnb properties in Scottsdale and Mesa, Arizona, as they attempted to compete with 60,000 other Airbnbs in the region.
Fewer bookings caused a hole to burn in Brian and Gina’s pockets until one of their colleagues recommended PadSplit.
Transitioning to PadSplit
Gina was initially skeptical. How would roommates get along? Would the property get trashed?
Her concerns subsided when she learned about PadSplit’s stringent screening process and how they could quickly fill their rental properties.
Brian and Gina decided they would throw caution to the wind by converting one of their Airbnb properties into a PadSplit. Within two weeks, they transitioned their four-bedroom property into a six-bedroom home. Their home was then fully booked within five days, which broke a PadSplit record.
Impressed with the immediate results, they moved on to another Airbnb property they owned around the corner and also converted it into a PadSplit. The second house was fully booked in just six days.
Providing Affordable Housing in the Local Community
Although their PadSplits are now bringing in more revenue than when they operated as Airbnbs, their purpose for renting out the homes has shifted.
“This is a way for us to give back to the community for people who really need houses,” Gina explains. “The [first PadSplit] now has a sense of community. I stop by, and everyone’s sitting at the counter with the doors open. They have Sunday dinners together, people are hugging, and there’s a sense of home.”
The Members have quickly become a tight-knit community and range in age from 21 to 57 years old, creating diversity.
Instead of purchasing only the essentials for the homes, Brian and Gina decided to stock the kitchen cabinets with cookware, add comforters to each bed, and place plush towels in the bathrooms to create a luxurious feel.
“For any [Airbnb] that’s not performing, this is a great option to really capitalize if you have a crew to make it a six or seven-bedroom,” says Gina. “It’s a good fix. You’re spending less money on cleaning and restocking the essentials. With all the money that goes into a vacation home, it really makes a difference.”
Saving 80% of Time Switching to PadSplit
Another key benefit of PadSplit vs Airbnb is the amount of time saved. Resident management is provided on the platform, which includes the collection of PadSplit membership dues. A dedicated call center is also available to resolve any resident issues or disputes.
“Managing a PadSplit is 100% easier than managing an Airbnb. Communication has been very minimal. I send out house reminders the day before trash and before the cleaners come, and that’s about it,” says Gina. “I’m saving about 80% of my time and energy by switching from Airbnb to PadSplit.”
Currently, the Hosts have 34 active doors in Scottsdale, Mesa, and Chandler. They plan to onboard 25-50 homes (6-9 bedroom homes) within the next year.
“I want to think about each house as a community, not just as a money cash flow,” says Gina. “There needs to be some heart behind it. Investors need to go in and view this as a way to help the housing crisis and give back to the community. We want [our residents] to think, ‘This is my home; this is my community.’”
Become a PadSplit Host Today
If you want to learn more about becoming a PadSplit Host and the PadSplit marketplace, reach out to our team today at PadSplit.com/hosts. Get started on making a difference in your community while doubling or tripling your income from a single-family property.