PadSplit Impact
September 2022
Overview:
How is PadSplit making an impact?
Founded in 2017, PadSplit’s mission is to help solve the affordable housing crisis, one room at a time. In only four years, the company’s acclaimed shared housing model has proven that it is, in fact, fostering financial empowerment and creating new opportunities for its residents (aka “Members”). But, PadSplit’s societal impacts go even further than this singular, albeit significant, accomplishment.
Today, PadSplit is the country’s largest shared housing marketplace designed specifically for the workforce.
PadSplit’s origins
PadSplit was founded by Atticus LeBlanc, a housing advocate whose background was in real estate investment and development of traditional rental properties. While always supportive of public housing and subsidized rent relief programs, Atticus grew frustrated by how slow and inefficient these programs were and how they couldn’t help nearly enough people, who simply sought opportunities. When a neighboring home was being foreclosed, two residents asked Atticus if they could move into his then vacant property. Because they were on a fixed income, they could only afford to rent individual rooms rather than the whole house.
He knew he would need technology to simplify this experience further, and with the founding team of Frank Furman and Jon O'Bryan, PadSplit became a shared housing marketplace that could align incentives across the housing spectrum.
Why is something like PadSplit even necessary?
The people who serve our communities simply cannot afford to live in them.
It’s more than a room.
When you become a PadSplit Member, you get exclusive access to free and discounted Member Perks.
A full-time minimum-wage worker can afford a one-bedroom rental in only 218 out of 3,000+ counties. NLIHC Out of Reach Report, 2021
A worker needs to earn this much to afford a one-bedroom home at fair market rent.
The number of "extremely cost-burdened renters" who spend more than half their income on housing. NLIHC Out of Reach Report, 2021
The rent is too damn high!
What does PadSplit do today?
PadSplit provides immediate access to all-inclusive rooms that meet HUD standards. By aligning incentives with housing providers, PadSplit's model creates more choices that increase housing supply and remove the barriers to entry for the folks that need housing the most.
Our core belief: We believe the people who serve our communities also deserve an opportunity to live in them.
Deliberately structured as a Public Benefit Corporation, PadSplit believes it's possible to do good and do well. Through PadSplit, workers can find a flexible, long-term rental option that includes furniture, utilities, and access to public transit — all without a credit score or security deposit. PadSplit's technology platform enables personalized weekly rent payments that facilitate easier budgeting and allow residents to improve their financial health.
What are the key results?
How PadSplit Works
Affordability and flexibility
Residents choose all-inclusive payments that match their pay schedule.
Easy to qualify
We underwrite residents earning $15K/yr with no minimum credit score required.
Multiple housing choices
We empower our residents to relocate with lots of options across the city. So workers can always be close to their jobs.
Smart collections
We process 30+ payments/house/month but make accounting easy for landlords.
Fast screening and booking
We qualify residents in minutes and book available rooms in hours.
Responsible residents
Our product helps manage resident and landlord accountability.
Member Impact
95% of Members have increased their credit scores.
More than 2700 Members established a credit score for the very first time.
Average savings $420 a month for each resident.
The median annual income for residents is $25,000.
75% of PadSplit homes are within 1 mile of public transit reducing traffic concerns and carbon emissions.
Policy Influences
PadSplit successfully lobbied HUD over the course of 2019 and 2020 to expressly permit shared housing for use by tenants with HUD vouchers, and to pressure local governments to conform to non-discriminatory Fair Housing standards. In January of 2021, they did so by releasing this notice. Specifically they had this to say about local regulations:
“PHAs [Public Housing Authorities] should be aware of the legal requirements in their service areas and work with their local jurisdictions to find solutions that encourage affordable housing and are consistent with the Fair Housing Act, Title VI, and other federal, state, and local fair housing laws. PHAs should inform HUD if they encounter barriers to shared housing that may conflict with fair housing laws.”
Economic Impact
Enviromental Impact
Utilizing existing space doesn't just allow us to create much-needed housing faster, it's also good for the environment, too.
Did you know?
Roughly 20% of US energy-related greenhouse gas (GHG) emissions stem from heating, cooling, and powering households. Although houses are becoming more energy efficient, US household energy use and related GHG emissions are not shrinking. By sharing resources, co-living reduces the energy consumption for appliances, like thermostats and air conditioners.
The carbon footprint of household energy use in the United States.
COVID-19 Response
$90K+
At the onset of the pandemic, many PadSplit Members lost their jobs and faced financial uncertainty. PadSplit realized that frontline workers needed emergency support and independently $90K for immediate housing assistance.
$79K+
In August 2020, PadSplit partnered with Esusu’s Rent Relief Program and has since deployed $79K in interest-free micro loans to PadSplit Members to ensure they had access to safe and affordable housing.
Host Benefits
Increased NOI by more than 2x for owners
95% Collections rate
Average Member tenure is >10 months
70% of PadSplit Hosts become repeat Hosts
Awards and Recognition
Inc’s Best in Business top company for real estate (2021)
PropTech Breakthrough’s Affordable Housing Solution of the Year (2021)
Inman Innovators finalist (2021)
Atlanta Inno 50 on Fire company (2021)
The Fire Awards (2022)
Inc’s America’ Fastest-Growing Private Companies (2022)
Atlanta Business Chronicle Corporate Citizen of the Year (2021)
Atlanta Business Chronicle Pacesetter fastest growing company in real estate (2021)
TiE Atlanta Growth and Impact Awards finalist (2021)
Technology Association of Georgia Top 10 Most Innovative company (2021)
More than numbers
Opening doors to new opportunities:
Statistics and numbers are important and show a positive impact. But at PadSplit, we're more than a room. We open doors to new opportunities for Members and Hosts.
We believe it’s possible to do well and do good at the same time. By aligning incentives for property owners, cities, businesses and lower-income earners, we've seen incredible results.
Many of our residents have improved their financial health by moving into their own apartments, buying their own cars and homes, and even converting them into PadSplits to start the cycle for others.
Read their stories
Become a Member or a Host today
