By: Lydia Crosswell

In a real estate market increasingly challenged by rising interest rates, tight housing supply, and escalating tenant expectations, one model has quietly emerged as both socially impactful and highly profitable: co-living rentals powered by platforms like PadSplit.Unlike short-term vacation rentals or conventional long-term leases, co-living properties offer weekly rent-by-room housing for individuals in need of flexibility and affordability. The model provides property owners with superior gross income potential and helps meet a critical housing need in urban and suburban communities across the United States. But transforming a standard single-family home into a thriving PadSplit listing isn’t easy. It requires precise execution, coordination across multiple vendors, and compliance with local regulations. That’s where CoLiving LaunchPad comes in as a done-for-you service provider that supports investors from the first offer to full tenant occupancy. In this article, we’ll walk through each stage of the co-living property lifecycle and break down how CoLiving LaunchPad simplifies the process. Whether you’re new to real estate investing or looking for a better model than long-term rentals, understanding this system can help you take action with greater confidence and clarity.

Here are the steps:

Step 1: Sourcing the Right Property

The process begins well before the drywall dust and furniture. Sourcing the right property is foundational to successful co-living.

CoLiving LaunchPad partners with agents, wholesalers, and investors to identify properties that:

• Are located within PadSplit’s approved zones and jurisdictions
• Offer at least 4 existing bedrooms, with potential to expand to 6 or more
• Have layouts conducive to shared living (multiple bathrooms, ample common space)
• Are near major employment centers, hospitals, or public transportation
• They are priced between $250,000 and $500,000 in secondary metros and suburbs

These properties are not typically found on Airbnb investor lists. They’re often under-the-radar homes in stable working-class neighborhoods close to jobs, but not priced at luxury premiums.

LaunchPad evaluates each home’s configuration and renovation potential, then underwrites the estimated rent per room using PadSplit’s local data.

Step 2: Making the Offer and Closing

Once a property is selected, CoLiving LaunchPad supports the investor through the purchase process, coordinating with agents, title companies, and lenders as needed.

Because co-living homes are sometimes misunderstood by traditional lenders, the team ensures that the investor selects financing that fits the model. This might include:

• Conventional mortgages (with enough cash to cover renovations)
• Business purpose loans
• DSCR (Debt Service Coverage Ratio) loans
• Local credit union financing

The company ensures the contract includes enough time for due diligence and renovation planning. Most properties are closed in 30–45 days, and renovations begin shortly after.

Step 3: Layout Optimization and Renovation

Here’s where the transformation begins.CoLiving LaunchPad sends in its renovation team or coordinates with the buyer’s vendors to prepare the home for co-living use. The goal is to create 6–8 private bedrooms, while maintaining functional shared spaces.

Common renovation steps include:

• Converting large living rooms or dining rooms into enclosed bedrooms
• Installing additional doors, closets, or privacy locks
• Painting, flooring, and light fixture updates
• Installing durable and easy-to-clean materials for shared areas
• Upgrading kitchen appliances for high-use households
• Adding washer/dryer units if needed

The bathroom count is also evaluated. While PadSplit does not require one bathroom per tenant, LaunchPad works to optimize spacing and flow.

Importantly, CoLiving LaunchPad aligns all work with platform standards and local zoning compliance.

Step 4: Furnishing and Property Setup

Once construction wraps, LaunchPad handles the full furnishing process.

Each bedroom typically includes:

• A full- or queen-sized bed with a mattress
• Dresser or clothing storage
• Desk or nightstand
• Lockable entry

Common areas are outfitted with:

• Dining table and chairs
• Comfortable seating
• Durable kitchenware and utensils
• Small appliances (microwave, toaster, coffee maker)

The home is equipped with Wi-Fi, smart locks, smoke detectors, and utilities. All costs are paid by the investor but coordinated by LaunchPad to reduce friction.

The entire home is photographed professionally in preparation for listing.

Step 5: Listing the Property on PadSplit

With the home ready for tenants, CoLiving LaunchPad manages the listing process. This includes:

• Creating a PadSplit host account on behalf of the investor
• Uploading photos, descriptions, and amenities
• Setting appropriate weekly rent rates based on comparable data
• Completing PadSplit’s internal property inspection checklist
• Coordinating home verification and approval timelines

Unlike Airbnb, PadSplit focuses on long-term occupancy at weekly rates. There’s no calendar management or seasonal pricing. Renters sign agreements directly with PadSplit, which collects weekly payments and distributes them to the owner, minus platform fees.

Each renter undergoes a background check and identity verification before being approved.

Step 6: Tenant Placement and Property Management

PadSplit operates as a hybrid platform: renters are sourced through their system, but daily management is handled by a designated host.

CoLiving LaunchPad introduces investors to experienced host managers who handle:

• Maintenance requests and minor repairs
• Cleaning coordination between tenant turnovers
• Enforcing house rules
• Overseeing renter compliance
• Re-stocking essential items if included 

This allows the owner to remain passive, receiving income from PadSplit, while the manager deals with the day-to-day responsibilities of a multi-tenant property.

The host is paid either a flat monthly rate or a percentage of gross rent (often between 8% and 10%).

Why This Model Matters

The “Offer to Occupancy” model provided by CoLiving LaunchPad solves a very specific investor pain point: execution paralysis. Most real estate investors love the idea of rent-by-room returns but don’t know where to start, or worse, start and stall halfway. CoLiving LaunchPad removes that risk by delivering a start-to-finish experience.

Here are some key benefits:

1. Speed

Most homes are fully livable within 60–90 days from the date of offer, far faster than DIY renovation timelines.

2. Compliance

LaunchPad verifies zoning and rental legality, helping investors avoid citations or HOA disputes.

3. Data-Driven Pricing

Weekly rent is set based on local market trends and PadSplit demand, not guesswork.

4. Professional Presentation

Homes are staged and photographed to maximize renter appeal and maintain high occupancy.

5. Social Impact

Every property adds 5–8 new affordable housing units to the local community without new construction or public funding.

Financial Illustration (Example Only)

Here’s a general look at what an investor might experience. Keep in mind that all figures are estimates, and actual results vary.

Again, this is for educational purposes only. Investors should always conduct their due diligence.

Who Is This For?

CoLiving LaunchPad is ideal for:

• Busy professionals looking for hands-off real estate income
• New investors who want to override trial-and-error
• Mission-driven buyers who value solving the affordable housing crisis
• Landlords with underperforming rentals looking to upgrade returns
• Out-of-state investors who want properties managed by professionals 

Conclusion

The rent-by-room model isn’t a new concept, but the systems behind it are finally maturing. With platforms like PadSplit providing national reach and infrastructure, and with service providers like CoLiving LaunchPad managing the heavy lifting, it’s now possible to generate rental income and create community impact without becoming a full-time landlord or general contractor.

From the moment a buyer submits an offer to the day the first tenant checks in, CoLiving LaunchPad oversees each phase with clarity and efficiency. For investors who value predictability, structure, and social good, this is a compelling model in a time of uncertainty.

https://colivinglaunchpad.com/frequently-asked-questions

 

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Investments in real estate carry risks, and past performance is not indicative of future results. Always consult with a qualified professional before making any investment decisions.