Location is one of these hotly contentious topics that either send tenants running or competing against one another for a property. Naturally, then, location should be at the forefront of any house hunter’s mind. It is the most crucial factor when purchasing investment properties.
Think about it, when a Member searches for a room or home, the first thing they will type into the search bar is their desired location. The closer they are to their work, shops, amenities, parks, and so much more could be the difference between tedious commutes and a 10-minute walk.
In our highly competitive real estate market, we want to solve the location issue by factoring the impermanence of the desired location into our business strategy. Turnover rates remain sky-high, meaning that a large portion of workers face the prospect of living a quasi-itinerant lifestyle.
With PadSplit, Members can find affordable living spaces across the country in record time. So, it’s rare that their Hosts will have empty rooms or that fellow PadMates will be left without a room.
When purchasing a property you intend to turn into a co-living space, Hosts need to look further afield than location as well. Ultimately, there are numerous approaches Hosts can take when searching for the ideal rental location. Here are some features to focus on when searching for your PadSplit investment property:
It’s easy to get caught up in promises of large appreciation and better cash flow. These are things we all want. However, none of that will matter if your property isn't appealing to Members. As a result, you need to think like a Member. Members prioritize location during the decision process – micro-location to be exact.
The fact of the matter is that you probably have a country, city, and maybe even region/borough within the city in mind. That's the location on a larger scale sorted. However, in reality, the fluctuations in demographics, property prices, quality of life, and commute times are exacerbated the closer you look.
Two neighborhoods may be located side by side; one neighborhood maybe a 3-minute walk from the nearest metro station, while the other is a cumbersome 20-minute walk away.
It’s constructive to imagine your life if you were to live day-to-day in every neighborhood you consider:
Once you’ve mastered this mindset and vetoed neighborhoods in the area, it’s time to take a closer look at the homes on offer within your chosen locations.
How many bedrooms do they have? Do any of them have en suites? What about gardens, patios, sheds, and so much more? You’ll have to learn what the “average” layout and makeup of the homes look like and consider what clients they would attract.
Speaking of Member requirements, while it’s recommended to avoid stereotypes in most instances – we can waive that expectation here: Get an idea of who your target Member is and hold it in mind.
Now, what are their priorities? We already know that location is number one in most Members' minds but what’s second? The simple answer is price.
If a person can’t afford to rent a specific property, then that’s the bottom line. There’s simply no way around it unless the landlord is willing to compromise.
The average rent rate has been soaring as of late, especially in urban areas. As a result, many tenants have found themselves priced out of their ideal rentals. While in September 2016, they might have had to pay an average of $1,348 U.S. dollars per month, they face paying $1,468 U.S. dollars coming into 2021. However, services such as PadSplit offer a way around unattainable prices.
By allowing tenants to rent by the room, prices are slashed while Hosts are still able to maximize their returns.
Here’s a fact to keep in mind: 70% of workers are likely to quit a minimum wage job within a short time period – that’s an alarming turnover rate. While that may seem innocuous, its knock-on effects can have devastating consequences for renters and landlords alike.
Why? If low-income workers are continually switching jobs to make ends meet, they will most likely have to move from job to job. This can mean broken leases, lost deposits, and so much more. Naturally, renters want to avoid this circumstance.
So, the flexibility of tenure can be a priority. With PadSplit, Members make payments on a weekly with no long-term leases. When a Member moves out, the empty room is listed on the PadSplit marketplace, ready for another pre-approved Member to move in.
No matter where you buy, someone will want to stay there. Short-term and flexible long-term rentals are in increasingly high demand – no room stays empty for long. While it’s worth considering whether your property will be attractive to prospective tenants or not, it’s best not to overdo the details.
In fact, if maximizing profits is your priority while rental property house hunting, you might want to consider renting by the room with PadSplit. Renting by the room effectively turns your home into a co-living space that’s gaining traction as the living arrangement of choice for Members in cities like Atlanta, Houston, San Antonio, and Richmond.
When searching for a property to rent with PadSplit, Hosts are faced with a litany of choices to make. From location to property size, it can be hard to know what to pick – especially if you’re worried about having empty rooms.
The fact of the matter is that Members usually prioritize price and flexibility above all else, with location following suit. Consequently, no listing on PadSplit stays idle for long due to our low-cost and inherently flexible model.
In short, Hosts need to choose a location they feel will correspond with Members’ needs. Curious if PadSplit is a good fit for you and your current properties? Our team put together this pro-forma tool to help you evaluate converting current or prospective properties to the PadSplit model.
Your PadSplit property listing photos are the first look a Member gets at your property. Here's how to take great photos and upload them to your dashboard.
We're breaking down the difference between PadSplit, traditional rentals, and short-term rentals.