Padsplit

Hosts can find Member collection details for each monthly Host payout in the CSV file available for download in the Earnings tab.The CSV file contains Member transaction data (Member bills, Member payments, property address, payout month) to help them understand where their income comes from. It can be downloaded for a specific month or a range of months.

Within the CSV file, the Payout Month column indicates the month in which the Member collection was paid out to the Host. If the Payout Month column is blank, then the month is still open and the collection has not yet been paid to the Host.

As a general rule, collections from Members will be settled with our payment processor and ready to be paid out to Hosts 5 days after the Member initiates the payment. This is due to the lag time between payment and settlement; the settlement period may be longer if a Member pays with ACH instead of a card.  

Case 1: Member payment made on November 13. It will initially be pending with the payment processor and settled within the next 5 days - by November 18. The earnings will be included in the November Host payout calculation, paid to the Host at the beginning of December.

Case 2: Member payment made on November 29. It will initially be pending with the payment processor and settled within the next 5 days - by December 3. The earnings will be included in the December Host payout calculation, paid to the Host at the beginning of January.

Consequently, in the last couple of days of a month, a Host’s Earnings Dashboard may report gross income for both the current month (Case 1) and the following month (Case 2).

Which Member collections are included in a specific Host payout?

PadSplit collects the necessary fields featured within a W-9 to generate 1099-MISC forms for Host earnings. We are generally required to file a Form 1099-MISC report with the IRS if the gross amount of your rental earnings is $600 or more in a calendar year. We use the Form W-9 to request a U.S. person's taxpayer identification number (TIN) for tax reporting purposes. 

If we do not receive one from you, we may be required to withhold tax from your earnings as a Host.

The tax information provided on this form should correspond to the person or legal entity that we will issue a Form 1099 to report Host earnings. 

Only one tax form can be assigned to each payout and bank account, so your Form W-9 must identify the correct person/entity responsible for the tax reporting.

Enter the name of the person who should receive a Form 1099 for Host earnings.

Individuals: Enter your full legal name as it appears on your tax return

If the owner is an individual, that individual should list their name as well

If the owner is an entity provide the full legal name of the entity owner as it appears on the owner’s tax return

If the Single Member LLC has elected to be treated as a corporation by IRS, enter the name of the Single Member LLC

Partnership: Write the full legal name of the partnership

Corporation:  Write the full legal name of the corporation

Trust: If the trust is a ‘grantor trust,’ enter the full legal name of the owner of the trust as it appears on that person’s tax return.

Individuals: who hold their PadSplit property in their own name should leave this line blank.

Single-member LLCs and Grantor trusts: should generally provide their name if the owner's name was provided in the previous field “LLC or Individual Name.”

Disregarded entities, DBAs, trade, and businesses: should fill their name in this field.

Sole Proprietorship: you may enter the name of your sole proprietorship here, but enter your individual name should be filled in the previous field “LLC or Individual Name.”

Taxpayer Identification Number (“TIN”)

The TIN should match the name of the person entered on the field “LLC or Individual Name” who should receive the Form 1099 for Host earnings. 

Social Security Number (SSN): can be found on your Social Security card. Format: xxx-xx-xxxx

Individual Tax Identification Number (ITIN): can be found on the CP565 notice from the IRS that assigned your ITIN. Format: 9xx-xx-xxxx

Employer Identification Number (EIN): can be found on the CP575A notice from the IRS that assigned your EIN. Format: xx-xxxxxxx

Select the appropriate tax classification for you or your legal entity (as identified on the "LLC or Individual Name" field) from the first drop-down box. Options: LLC, LLC (Single Member), Individual/Sole Proprietor, C Corporation, S Corporation, Partnership, or Trust/estate.

Provide the address of the person or entity whose name is entered on the “LLC or Individual Name” field. This is where a physical of the 1099 would be sent, if requested.

Tax Information

Members pay electronically on the PadSplit site using credit, debit or bank transfer. At no point should PadSplit Members be asked to pay outside of the platform, and any such request will result in removal of the property from the platform and forfeiture of all funds paid through the platform.

How do Members pay their dues?

PadSplit Host Payouts are processed after the conclusion of each month. Hosts can expect to receive their monthly payouts by the 3rd business day of each month. PadSplit Hosts that utilize Two Keys Property Services for property management can expect to receive their monthly payouts by the 10th day of the month.

How often do I get paid?

PadSplit is a marketplace that lists, markets and assists with co-living. We do not guarantee rent payments.

Are payments guaranteed?

PadSplit Members value the flexibility of our housing. Members who decide to leave PadSplit can schedule their move-out date on their Member dashboard. As a Host, you will be notified via email when a move-out from your home is scheduled. Same-day move-outs are not allowed.

 may do so as long as the cancellation occurs before their scheduled move-out date.

PadSplit members pay by the week. If you choose to move out in the middle of a weekly dues period, you will NOT receive a refund for the remainder of the week*. You will only receive a refund if you have prepaid in excess of your current weekly dues period. The refunded amount will be only for any prepaid days outside of the current dues week. Please contact 

Tip: To get the most for your money, it’s best to schedule your move out the day after your upcoming dues day, and move out by 9 AM. 

Remember to complete the move-out form in order to be refunded for your last day. Instructions can be found 

*If you pay biweekly and move out during the first 7 days of your billing period, you are eligible for a refund of dues in excess of the first 7 days of your billing period.

Members Who Have Signed a 30 Day Minimum Commitment with PadSplit

If a member breaks their minimum commitment of at least 30 days, they will automatically be charged $35 to the credit or debit card they have on file . There is no penalty for moving out on the last day of their 30 day minimum commitment, since they have paid your dues in full. Once their penalty has been paid, they are eligible for a refund of any prepaid days outside of their current weekly dues period. 

 After the last day of their initial commitment period, Members are automatically moved to a week-to-week commitment.

Members who have signed a 5, 12, or 24 week commitment with PadSplit

If a member breaks their minimum commitment of 5, 12, or 24 weeks, they will be charged a penalty.  The penalty amount varies based on the commitment period they selected: 

Penalties will be charged automatically to the credit or debit card Members have on file. Once the penalty has been paid, Members are eligible for a refund of any prepaid days outside of their current weekly dues period.

After the last day of their initial commitment period, Members are automatically moved to a week-to-week commitment.

What is the move-out refund policy for Members?

PadSplit's cancellation policy maintains flexibility for Members and proper compensation for Hosts. 

Members are able to cancel a move-in up to 8:00pm EST the day before. Refunds are issued based on the day and time of a Member's cancellation (see chart below). 

Members who believe that the quality of their PadSplit room was not as advertised or up to specification may request a free transfer or refund on move-in day if they meet 

. In addition, Members are granted a free transfer within 14 days of their first PadSplit move-in.

Can Members cancel their move-in?

We understand that economic conditions sometimes necessitate room rate increases. In order to comply with the law and protect affordable housing for our Members, room rate increases can only be enacted if the following criteria are met:

Members must have resided in the room for at least 90 days to be eligible for a rate increase

Members cannot have their rate increased more than once in 6 months

Hosts must give a 30-day notice of any rate increases

Hosts may not increase the rate by more than $10

Please log into your Dashboard to initiate a rate increase or set a new room rate for the next time your room is listed. Detailed instructions on how to do so can be found 

Can I raise a room rate?

The totals shown on the Host Dashboard reflect the gross income and net host earnings for a property for all past periods; the amount paid out is equal to the net host earnings. 

Current and future months that are actively accruing bills and collections have a ‘Month-to-date’ flag that indicates that data could change due to upcoming billing and payment activity. 

Looking for information on how to match up member collections with host payouts? See 

"Which member collections are included in a specific host payout?"

Does the Host Earnings Dashboard match the amounts disbursed in PadSplit host payouts?

Moving forward PadSplit will be using accrual accounting. For example, if a Member pays for 4 weeks at once, PadSplit only releases one week’s worth of payment to the Host each week instead of all at once.

Previously, PadSplit used cash based accounting vs. accrual. Is this still true?

Depending on the Member’s dues date, you may see a difference in the amount billed versus the amount collected. There is a natural lag between billing and collections. PadSplit bills before the dues date (before PadSplit expects the member to pay). Once the Member pays, PadSplit doesn’t actually receive the funds in the bank until days after the payment is initiated (when the payment settles). There is also a possibility that the Member will pay late. It’s when the payment settles that the Host will receive those funds during the 

How does a Member’s dues date affect the billed totals?

Bills include everything PadSplit charges for: the weekly rate, move-in fees, fines (such as late fees and rule violations), etc. What gets paid out to the Host is not necessarily the bills for that month, but the real funds collected in our corporate bank account towards any bills for that Host from any point in time. If PadSplit gets $5 in our bank account for a Host bill, we take our percentage and pay the rest to the Host in the next month’s payout, regardless of whether that bill is from the current or a past month.

Are late fees, admin fees, fines, etc. added to the billed totals or just the weekly rate?

It is possible to see negative bills and negative collections. Both can happen either at the same time or independently. Negative charges occur when more concessions than bills were added for that room, property, or Host during a month. The reasons for adding concessions vary. Negative collections can occur when concessions are added for bills that PadSplit has already paid out. Negative collections can also occur if PadSplit refunds Member money that had already been paid out to the Host.

What situations lead to a negative billed amount?

There are several scenarios that can result in higher billed amounts. Because collections naturally lag behind billing, it is common to see higher bills at the start of an occupancy (before we collect on those bills from the Member). You may also see a higher billed than collected amount if a Member stops paying or is late on payments. Additionally, billed and collected amounts depend on how the weeks line up in a month (for example, a Member might be billed in one month but pay in the next).

What situations lead to a higher than expected billed amount?

Gross Income - Total PadSplit fees (Transaction Fees (2.75%) + PadSplit Platform Fee (12%)) = Operating Income (Payout)

How does PadSplit calculate a Host’s monthly payout?

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In this article, we will give an overview of how Member financials work.  

What payment options are Members given at booking? 

Members can choose their Dues Day (day of the week their payment is due) and their payment frequency (weekly or biweekly). Additionally, they can pay using a debit card, credit card, prepaid card (see restrictions 

Members are billed two days before their Dues Day. 

Members receive a late fee ($25) if they carry a balance past 11:59 PM on their Dues Day, even if a partial payment was made.

Members that carry a balance of $300 or greater after their Dues Day will be placed in ‘Termination Risk’ status. They will have 48 hours after their Dues Day to get their balance under $300 or their PadSplit Membership will be terminated.

For more information on Member financial statuses, see 

How to interpret a Member's financial status

Yes, Members are always billed in advance. 

Members prepay for the upcoming week (or weeks if biweekly)

 For example, if a Member’s Dues Day is Friday the 11th, the invoice they receive on Wednesday the 9th will be for payment to stay from Saturday the 12th through Friday the 18th. 

Including late fees, other billed amounts and dues, PadSplit’s current collections rate is 97%.

What can I do as a host to prevent collections terminations?

Hosts can help members in ‘Termination Risk’ status by issuing concessions or postponing a Member’s termination date (see 

How can I prevent a Member from being terminated for collections?

). In addition, hosts can reinstate the Membership of Members that have been terminated for collections (see 

How do I reinstate a Member who was terminated for collections?

). Both options are available in the Member profile on your Host dashboard.

What does PadSplit do to help Members that are facing financial hardship? 

The PadSplit Collections team works hard to contact and remind Members of their balances, upcoming deadlines and the consequences of non-payment. We send reminders via email, app notifications and SMS every dues date and every time a Member is late in paying their dues. In addition, we call every Member at risk of termination to understand their situation and try to find ways to help them. During these communications, we always remind Members of the 

 that are available to them, such as an interest free loan from our partner Esusu. 

In cases where we couldn’t prevent the Member’s termination, the PadSplit Support team will call at least 4 times to encourage them to move out of the property. If we find out the status of the Member’s move-out, we update the Host about it.

How do Member Financials work?

Everyone needs a hand every once in awhile, and we’ve found that a bit of help can go a long way towards increasing Member tenure and preventing a costly eviction. 

A Member will always be placed in one of six financial statuses (see 

How to interpret a Member's financial statu

for more info). Hosts can now choose to help Members in ‘Termination Risk’ and ‘Terminated’ (for collections only) statuses. 

To help Members in ‘Terminated’ status, please continue reading. To help Members in ‘Termination Risk’ status please see 

How do I know which Members have been terminated? Which Members should I help?

Members with a ‘Terminated’ financial status are Members who were terminated due to collections or behavioral reasons. In the case of collections terminations, this happens when a Member has an outstanding balance of $300 or greater 48 hours after their Dues Day (see “

What happens if I have an outstanding balance?

For example, a Member with a Friday Dues Day will be terminated for collections on Sunday at 11:59pm if their balance is $300 or greater. 

There are several ways to know when a Member has been terminated:

Email: Hosts will receive an email when a Member is terminated

Maintenance Dashboard: Whenever a Member is terminated, a room turn maintenance ticket will be generated in your 

 with the ‘Collections’ description. You can filter out these tickets by selecting ‘Room Turn’ on the Category filter and looking for those with the Collections flag (see image below).

Dashboard - Members List: Hosts can also find the financial status of all Members by viewing the Members tab on your dashboard. On this tab, a Host can filter Members by financial status and click into an individual Member’s profile to see detailed financial insights like a Member’s balance, Member’s financial status, next Dues Day, the percentage of payments on time, outstanding invoices and more.

If you need more information to make an informed decision, please feel free to contact the Member via their listed phone number.

What can Hosts do to help a ‘Terminated’ Member?

Hosts can now reinstate a Member (put a Member back in their room) who has been terminated for collections during the first 3 days after a member was terminated. When reinstating a Member, you will be able to choose the date that a collections termination could resume. 
*NOTE: If the member was terminated more than 3 days ago, you will need to request the reinstatement by sending an email to support@padsplit.com  

and the steps below for detailed instructions on how to reinstate a Member terminated for collections through your dashboard.

Select the property where the Member is living

Select the Member that you want to assist

Check the Member’s ‘Finance tab’ to get more information about the Member

Choose how long you want the Member to avoid termination through. Keep in mind that the Member will be charged their Membership dues and late fees during the entire period of time.   

Members will be informed of your decision via SMS, push notifications and in their dashboards. However, we highly recommend that you contact the Member and establish a payment plan and expectations.

There are multiple ways to understand the financial situation of a Member. We highly recommend reviewing the 'Members tab' on your dashboard. On this tab, a Host can filter Members by financial status and click into an individual Member’s profile to see detailed financial insights like a Member’s balance, Member’s financial status, next Dues Day, the percentage of payments on time, outstanding invoices and more. 

What is the Member's financial status? How many financial statuses are there and what do they mean? 

The Member's financial status is a classification used to communicate the 

There are six different types of financial statuses:

 The Member is in a good state. The Member has a $0 or positive balance.

 The Member is in a good state. PadSplit bills Members 2 days before their payment is due. If a Member is in “Time to Pay” status, this Member has been charged their dues amount but it is not due yet.

 The Member is carrying a balance but keeping it under $300. This Member will have received a $25 late fee for not bringing their balance to $0 before 11:59 PM on their Dues Day. 

. The Member is carrying a balance greater than $300 after their Dues Day. The Member has received a late fee and has 48 hours to bring their outstanding balance under $300 to avoid termination. 

 The Member’s PadSplit Membership was 

 due to collections (Member’s balance remained greater than $300 48 hours after their Dues Day) or for behavioral reasons and now needs to move out. 

 The Member has been terminated and the Host has indicated that they have not vacated and that the eviction process has begun.

Everything a Host needs to know -- from listing to operating a home -- to succeed with PadSplit.

Payments