What’s the difference between PadSplit and Airbnb? With PadSplit, you can provide housing for individuals working in and serving your community while generating comparable returns to short-term rentals like Airbnb. The platform allows property owners to list clean, affordable rooms for the 14 million working people who lack affordable housing.
I’ve hosted my property on Airbnb, a popular short-term rental platform. It allowed us to earn money to support our vacations and provide a rental option for families, friends, and people interested in experiencing our city (Atlanta).
Since it was my permanent residence, and no one was using the space, I can justify my actions, but I believe it’s a fine line that quickly blurs. Although there’s a housing shortage, there’s enough square footage to provide enough housing in our city, significantly impacting the affordability crisis. From mountain towns to cities and rural communities, it’s challenging to find affordable rentals if you earn less than $20/hr.
The Need for Housing is Massive
Google the median income needed to rent a $1,300 studio (median price), and it’s around $46,000. There are 14 million 1 & 2-person renter households earning less than $35,000, representing 1/3 of the U.S. rental population.
As cities and politicians review housing use and supply shortages, it’s challenging to compare choices: 1) housing people who work in and serve your community or 2) creating additional vacation units.
The choice is clear to me. The need for housing is massive, but PadSplit allows owners to convert underutilized space into rental properties, thus increasing the housing supply.
Some cities and states have regulated or proposed regulations and taxes on short-term rentals, like Airbnb. For example, California is proposing a 15% tax on short-term rentals, NYC’s Local Law 18 requires short-term rental registration and prohibits bookings on platforms like Airbnb for unregistered properties, and Atlanta limits Airbnb ownership to two properties, with one being your permanent residence. With additional taxes and fees, there’s financial pressure to consider Airbnb vs. traditional renting or alternative uses for the property.
Regulations Won’t Solve Our Supply Shortage
My partner asked, “How are we supposed to stay somewhere cool?” As someone who has hosted on Airbnb and values it as a travel option, I believe there will always be areas with a shortage of vacation rentals and hotels where Airbnb is needed. Regulations won’t solve our supply shortage.
In light of the imminent supply shortage, it’s hard not to adjust our individual actions and promote PadSplit, which has already added 8,600 furnished rooms and continues to grow.
It is my hope that we will see a natural movement of converting underutilized space, such as Airbnbs, fixes and flips gone wrong, or traditional rentals, into clean and affordable PadSplit units for our community’s workforce. Our motto is “Do well and do good,” and I believe you can make similar returns to Airbnb while housing individuals who serve your community. I’ll bet on that movement and the need for this product all day.
List Your Units on PadSplit
It might be worthwhile to consider listing your units on PadSplit if you’re experiencing low short-term rental occupancy, facing regulatory challenges, or facing financial strain on your property investment.
Contact us today to speak to a PadSplit account executive to learn more about how to get started. We’ll walk you through each step of the process and help you regain lost Airbnb revenue while making an immediate impact in your community.
-Adam Kolojejchick-Kotch, PadSplit Chief Growth Officer