For many property owners, midterm rentals have emerged as a way to balance stability with strong returns, offering an appealing middle ground between the high returns of short-term rentals and the stability of long-term leases. This shift has drawn growing interest from both investors and housing advocates, and it sets the stage for platforms like PadSplit to stand out as structured solutions within the midterm rental space. Within this growing category, PadSplit has become a focal point in conversations about how to generate steady cash flow while helping address the broader challenge of housing affordability.
The platform emphasizes room-by-room rentals for working adults, offering a middle ground between the volatility of short-term rentals and the stagnation of traditional long-term leases. Dr. Connor Robertson, a Canadian-born entrepreneur and real estate expert, has closely examined the model and sees PadSplit as having the potential to become the cornerstone of housing for the next decade. “PadSplit is a platform that helps owners rent private rooms inside shared homes to qualified members,” Dr. Robertson explains. “It’s not a get-rich-quick strategy. It’s an operations business that rewards thoughtful design, consistent maintenance, and a clear set of house rules.”
The Economics Behind the Model
The business case for PadSplit comes down to a straightforward formula: room count multiplied by weekly rate multiplied by occupancy. Revenue potential can be significant, but costs must be accounted for with equal rigor. Mortgage or debt service, taxes, insurance, utilities, internet, lawn care, pest control, and reserves for capital expenditures all factor into the equation. Platform fees typically run around eight percent, with professional management adding another eight percent for those who choose to outsource operations.
Initial set-up costs also play a role. Furniture, linens, locks, and common-area improvements require meaningful investment. Dr. Robertson notes that a realistic planning number is around $1,500 per bedroom plus additional costs for shared spaces. Durable finishes, such as robust flooring, better lighting, and hard-wearing paint, may increase upfront expense but reduce turnover-related challenges later on.
Why Residents Choose This Model
Tenants, or “members” in PadSplit’s terminology, say they are drawn to the model for predictable costs, flexible terms, and limited upfront deposits. Location remains critical, with proximity to employment centers and transit options often determining occupancy levels. Homes that thrive within the platform are bright, clean, and well-organized. Clear rules, labeled storage, and responsive communication from hosts consistently drive higher retention. “The difference between a good host and a great host is often how they communicate,” Dr. Robertson says. “Expectations are everything in shared living.”
Operational Realities and Compliance
PadSplit is as much a hospitality business as it is a housing model, and compliance plays a central role in successful operations. Effective hosts operate with discipline, putting systems in place for maintenance, messaging, and property standards. Consumables are tracked, spaces are labeled, and issues are addressed quickly. “Better reviews, more referrals, and longer tenures come from consistency and professionalism,” explains Dr. Robertson.
Equally important are zoning, permitting, and safety considerations. Dr. Robertson cautions investors to study local regulations before acquiring properties, as some municipalities impose occupancy limits or require special permits for room-by-room rentals. Life safety standards, such as smoke and carbon monoxide detectors, proper egress, and electrical capacity, are essential rather than optional. “Compliance isn’t just a checkbox,” Dr. Robertson emphasizes. “It’s how you protect both residents and your own downside.”
Common Pitfalls for Owners
New operators often underestimate expenses or overestimate achievable rents. Furniture budgets, utility bills, and turnover costs can easily exceed initial forecasts, especially when upgrades like durable flooring, locks, or furnishings are not fully accounted for. Another frequent error lies in neglecting the resident experience. Poor lighting, inadequate Wi-Fi, or confusing house rules can undermine occupancy regardless of initial projections.
“One of the biggest mistakes I see is when owners think they can simply hand over the keys and collect rent,” Dr. Robertson explains. “PadSplit works best when you treat it as a business that requires systems, standards, and a proactive approach.” Recognizing these pitfalls early helps owners set more realistic expectations and avoid frustration, ensuring their properties function both profitably and sustainably.
The Bigger Picture
Demographic and economic trends suggest that co-living will only grow in importance. Many urban markets face a gap between traditional rental prices and the wages of essential workers. Room-by-room housing helps bridge that divide, offering privacy at attainable price points without pushing residents to distant suburbs. With healthcare, logistics, and service industries still clustered near city centers, Dr. Robertson believes demand for shared housing close to employment will remain strong. “Most people who get into this space discover they’re not just generating cash flow,” he reflects. “They’re also creating housing that people can afford, and that has real social impact.”
For Dr. Robertson, he connects Padsplits value not only to investor returns but also to larger demographic and economic pressures, particularly the growing challenge of housing affordability. In his view, when applied thoughtfully, PadSplit addresses both sides of the equation: creating sustainable income for owners while expanding access to reasonably priced housing for essential workers and other renters who are increasingly squeezed out of traditional markets. “If you want success with this model, approach it like a professional from day one,” he says.
To learn more about Dr. Connor Robertson’s insights into real estate investing, visit his LinkedIn or explore his website.
