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Workforce housing company PadSplit experienced a surge in growth for 2021, according to a press release the company shared with Inman.
The unique model targeting lower income Americans, considered part of the ever-critical “workforce” sector, managed to triple its year-over-year inventory of available units to a total of 3,400.
Atlanta-base PadSplit also secured properties in seven new markets, including Houston, Richmond, Tampa, New Orleans, Indianapolis, Dallas and Jacksonville.
According to the release, PadSplit is “the largest shared housing marketplace specifically designed for the workforce.”
Deeming itself a social-impact company, PadSplit works with property owners to fractionalized homes for a market’s workforce, targeting individuals in construction, healthcare, service industries, teachers and daycare professionals.
A PadSplit resident’s median income is $22,000 annually, according to the company. It also does not require a minimum credit score or security deposit, and the average fee is $663 per month. That rate provides a private bedroom, furnishings, Wi-Fi and utilities.
Proprietary backend software allows residents to customize payment schedules according to pay periods, as well as help manage occupancy details.
PadSplit, a public benefit corporation (B Corp), also includes financial assistance by reporting rent payments to credit bureaus as well as help with job placement and if needed, telehealth services, all at no additional cost.
Company metrics state that the average resident saves $420 more per month as a result of reduced rent, commute costs and utility rates. This is largely a result of PadSplit focusing on homes close to work centers and public transit systems.
Developed to address the nation’s worsening housing affordability crisis, which shows no sign of improving, the co-living housing startup was founded in 2017 by Atticus LeBlanc, a career real estate investor, apartment developer and affordable housing advocate.
LeBlanc’s vision resulted in homeowners doubling net operating income last year, empowering them to further invest in new homes to be “PadSplit.” It also helped 88 percent of residents improve their credit score through a partnership with Esusu, and more than 700 establish a credit score for the first time.
PadSplit also helps residents access quick, interest-free loans. Access to emergency capital is often a major barrier to lower-income Americans being able to gain a foothold after sudden financial demands or personal emergencies, often in the form of medical expenses.
Real estate agents in cooperating markets can benefit by working with PadSplit to connect investor clients with its rental model and assisting temporarily unqualified buyers with housing options.
PadSplit closed on $20.5 million Series B round of financing in November of 2021. A seed round of $4.6 million closed in April of last year.
It has 120 employees in a remote work setting and was a 2021 Inman Innovator Award finalist for Company of the Year.
Have a technology product you would like to discuss? Email Craig Rowe
Craig C. Rowe started in commercial real estate at the dawn of the dot-com boom, helping an array of commercial real estate companies fortify their online presence and analyze internal software decisions. He now helps agents with technology decisions and marketing through reviewing software and tech for Inman.