For over a year, I was a dedicated host on PadSplit, excited about the company’s promise as a competitor to Airbnb for affordable housing. However, my experience took a drastic turn when PadSplit abruptly canceled all stays for the 17 residents living in my properties—without warning. Not only did this leave me without rental income, but they also unfairly charged all the residents cancellation fees in the hundreds of dollars, even though the app forced them to cancel.
If you’re considering buying property to list on PadSplit, be warned: you could receive a sudden termination notice like this one at any moment, with no recourse options.
Sudden Cancellations & Unfair Fees
The guest whose complaint (about her lock not working and her unit being smaller than expected) allegedly triggered these mass cancellations retracted their statement and even left a five-star review. In fact, all 19 residents wanted to stay. To make things right, I personally reimbursed them for the unfair cancellation fees that PadSplit imposed upon forcing them to cancel their stays and leaving them without a home.
This situation made me rethink my entire relationship with the platform. Initially, I was enthusiastic and even hired an architect to design new home builds specifically for PadSplit. But that vision quickly crumbled when I realized that PadSplit’s priorities were not aligned with mine.
Host Pressures & Questionable Policies
The real reason PadSplit cut ties with me was that I was slow to bring my long-term tenants onto the platform. At first, they agreed that my existing tenants—who had been renting adjacent properties for years—could be grandfathered in, since they were on fixed incomes from Social Security and could not afford PadSplit’s additional fees. But as time went on, PadSplit pressured me to convert every resident to their system.
This led me to ask a critical question: besides bringing me tenants, what does PadSplit actually do for me?
No Protection for Hosts
One of the biggest issues with PadSplit is the lack of security for hosts. When a guest destroyed one of my units, PadSplit told me I was on my own unless the tenant decided to pay for the damages. They provide no insurance, no deposit protections, and no real recourse for hosts dealing with destructive or non-paying tenants.
To make matters worse, the quality of tenants on the platform has declined over time. PadSplit claims they want all tenants under their umbrella for liability and screening purposes, but in reality, they do little to screen their members. The last tenant they sent me turned out to be a crazy rapist—who first hinted at it by discussing rape in writing as if he were the victim. Then I background checked him. His messages were highly concerning to my property manager, who was a survivor herself.
He sent these texts on his first day:
And finally, at the time of my ejection from the platform, I was in the process of formally evicting FOUR former Padsplit guests whom Padsplit “terminated” effectively washing their hands of the nonpaying tenant problem.
So…What are you paying Padsplit for?
The One Benefit of PadSplit
If there’s one positive aspect of the platform, it’s that they report to credit bureaus when guests fail to pay rent. This means that non-paying tenants eventually see their credit scores drop until they settle their debts. However, this single benefit does not outweigh the risks and mismanagement issues that hosts face.
Final Thoughts
PadSplit is a great concept but suffers from poor execution. The platform fails to support its hosts, lacks proper tenant screening, and does not provide financial security. While I once envisioned expanding my business with PadSplit, I now strongly caution others against relying on them for rental income.
Dealing with housing the lowest-income segment of Americans is not an easy task. They come with drama, criminal records, and financial challenges, all of which make them a huge legal liability for platforms like Padsplit and Airbnb.
You also cannot control how roommates behave. If one roommate fights another, it now becomes a complaint against the host or a lawsuit against Padsplit. Too much liability!
Its an evolving company and I do believe the staff care. They just don’t have the processes in place to handle all the different scenarios that can happen or qualify the legitimacy and biases in negative feedback because of the constant threat of litigation in an industry like housing.
Ultimately — I blame the lawyers.
Still, if you are going to have a business in this arena, then you need to find a way to protect your hosts and also treat your guests like humans.
I sincerely hope that PadSplit improves its operations and starts valuing the hosts who make their business possible. Until then, I urge landlords to think twice before committing their properties to this platform.
- Mark, 13 year affordable housing provider
