PadSplit Is Paving the Way for Affordable Housing in Virginia
There’s a new, on-demand housing service entering the market — one that won’t break the bank. PadSplit is a privatized affordable housing company with a mission to change the world, one room at a time. The service connects property owners with low-income tenants looking for a place to call home. PadSplit offers its users an online marketplace for affordable housing options, and members must have an average annual income of $25,000 or lower to join. It has 60 full-time employees and about 80 contractors, hiring out property maintenance issues to local contractors. The Atlanta-based company has recently added Virginia to their list of markets, helping to tackle Virginia’s lack of affordable housing.
How PadSplit Works
Founded in 2017 by Atticus LeBlanc, PadSplit works to use housing as a channel for financial freedom, focusing on low-income individuals in our communities. The company prides itself on flexibility, creating a system built on trust and compassion. PadSplit offers their tenants benefits that services like Airbnb can’t compete with, including:
- The ability to pay by the week
- Fully furnished rooms
- Free utilities, including WiFi
- Spaces close to public transportation
- Trustworthy housemates
- Flexible terms so tenants can determine how long they’d like to stay
PadSplit requires tenants to be members before being able to use their services. Members must verify their background, employment, and income and pay a weekly flat fee that covers the property’s amenities and utilities.
Virginia’s Affordable Housing Crisis
Virginia families with incomes of less than $50,000 per year for a family of four spend over half of their income on rent, mortgage, taxes, fees, and basic utilities. Individuals and families with moderate incomes ($50,000 to $100,000 for a family of four) fare slightly better, but still over half (59%) cannot afford their homes, and 19% spend over half of their income on housing. Occupations that experienced severe housing burden at the highest rates are predominantly in roles deemed “essential” during the COVID-19 pandemic, including teachers, construction workers, retail salespersons, drivers, and restaurant staff.
Virginia’s housing market is getting more expensive year over year, and it’s showing no signs of slowing down. From 2000 to 2018, the area median income increased 42% while the average rent in metro areas like Alexandria increased 102%.
PadSplit Is Tackling Virginia’s Affordable Housing Issues
The company is setting its focus on the Petersburg area first, offering residents 12 individual rooms as a trial with plans to branch into the Richmond area as well. Weekly rates for rooms in Petersburg range between $140 to $165, which is significantly lower than the average rent price of $1,034 a month in Petersburg.
PadSplit also offers its members additional resources in the form of blogs to help inspire actionable changes in their members so they can go on to make a positive impact in their lives and the lives of others in their communities.
Game-changing companies like PadSplit are giving Americans affordable options with low additional costs and valuable online resources to grant them the freedom and tools to change their lives. This service gives them more time to focus on creating opportunities for financial freedom by lifting the heavy affordable housing burden with the hope that these individuals can purchase a home of their own down the line.
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