Can I hire a team to run my PadSplits?
Last updated January 19, 2023
Below, please find three common models to consider as you structure your arrangements:
| Description | Manager charges a either a flat fee or fixed percentage of revenue monthly (usually 8-15%) | Manager and owner split net operating income (either favoring the owner or 50/50 after an initial hurdle is cleared) | Manager pays owner a fixed monthly rent, and keeps all revenue generated by the property |
| Pros | Simple to explain, follows traditional fee model, most upside for owner | Best alignment of incentives between manager and owner | Simplest to set up, administer, and explain to owner. Most upside for manager. |
| Cons | Doesn’t align incentives between owner and manager on maintenance and utility consumption | Most complicated to explain and keep books. | Most risk for manager if things don’t go well. Leasehold improvements must usually come from manager |
| Great for... | Owners who are sold on the PadSplit concept | Owners who want managers to control costs | Experienced managers who really understand their profit drivers |
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Preparing to Manage a PadSplit
Everything you need to know on owning and operating a PadSplit home.