PadSplit, the tech-enabled affordable housing startup, has opened its platform to ordinary property owners that want to monetize their extra space. This comes after the company grew 10x in the past year, with over 500 active units that collect more than $60,000 a week.
Thus far, they’ve been sourcing units primarily from real estate investors, a world that CEO Atticus LeBlanc comes from.
“As a market solution that caters primarily to investors, on the supply side our inventory is limited to where investors already own properties or where they can buy new ones,” LeBlanc tells Hypepotamus. “We want to tackle both transportation and housing costs together to save our members some money.”
“In order to expand our geographical region [and tackle those costs together], we will be marketing specifically and directly to consumers,” says LeBlanc.
LeBlanc announced the opening of the platform on-stage at Monday evening’s Techstars Atlanta Demo Day. Padsplit is an alum of the accelerator, counting Techstars Ventures and Techstars partner Cox Enterprises as investors.
PadSplit’s model turns single-family homes into multi-unit ‘PadSplits’ to create more affordable options within city centers.
PadSplit members pay a weekly fee that encompasses rent, utilities, and amenities such as parking, laundry usage, and WiFi. These flexible memberships can be as short-term or long-term as members like.
According to LeBlanc, there are over 180,000 singles and couples struggling to find decent housing on their income.
The new consumer focus will help PadSplit expand to neighborhoods where investment properties may not be available. Individuals with extra rooms in their house, garage apartments, or in-law suites must comply with PadSplits standards to put them up for rent on the platform.
The consumer-facing platform will allow the homeowner to connect directly with the member living in their home, while PadSplit handles the back-end support, payment processing, and any issues that come up.
“There isn’t anybody today that offer continuing ongoing support, including the payments, processing, and collections fees for homeowners,” says LeBlanc. “We think that’s important to build trust with those prospective consumers.”
PadSplit’s $4.6 million seed round raised last spring was partially earmarked to expand to new cities, the first of which will be Houston in a couple of months. They will be opening their Series A round early next year.
Until then, LeBlanc and his team are pushing toward continued growth in Atlanta.
“We believe the people who work and serve in our communities also deserve an opportunity to live in them. You have the power to make a profound impact, change someone’s life and earn extra income for the space you’re not even really using,” LeBlanc said on stage at the event.
“We have built an amazing and diverse team of dreamers, technicians and operators who continue to change the world, one room at a time.”