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Understand the Processes

How do Member Payments work?

PadSplit’s payments process is designed to service the lower income demographic that make up most of our Member base.

Here are some quick facts about Member payments:

PadSplit bills Members weekly or biweekly to coincide with most Members’ pay days
Members pay in advance for the next week or 2 weeks of their stay. 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.
Members are billed two days before their payment is due. Therefore, most Members will show up as having a negative balance for the first two days of their billing cycle.
Because many of our Members do not have savings, PadSplit does not require security deposits
Members can pay using a debit card, credit card, prepaid card (see restrictions here) or bank transfer (ACH)

For more information on how Member payments work, please see this article.

What about Members who get behind on their Payments?

PadSplit runs an internal collections team dedicated to helping keep Members on track with their payments. With a 97% collections rate (including fees), we are beating industry averages for our income demographic.

Here are some quick facts about collections:

Members receive a $25 dues recovery fee if they carry a balance past their Dues Day
PadSplit calls and texts every Member with a balance >$300, prompting them to pay and explaining the consequences for non-payment
PadSplit facilitates Host approved payment extensions and reinstatements. Tenure and collections can be dramatically improved by using these tools.
PadSplit partners with Esusu to provide qualified Members with interest free loans for rent payments
We are currently experimenting with Payment Plans and Proactive Calls for Members that aren’t at risk of termination but have had an outstanding balance for more than 14 days.

The PadSplit payments system maintains a cutoff for balances over $300. Members that carry a balance of $300 or greater 48 hours after their Dues Day will have their PadSplit Membership terminated.

When a Member is terminated for collections:

Their occupancy is ended, and they are asked to vacate their PadSplit
If a Member wants to pay to stay, we issue reinstatements with Host approval
Members are told that they can rebook with PadSplit if they vacate promptly AND pay their outstanding balance in full. Currently, around 6% of terminated Members that moved out are rebooking. Consequently, you might see additional payments in your Payout reports for old Members.
Should the Member not vacate, they are called on day 1, 2, 3 and 7. PadSplit strongly recommends to the Member that they vacate or face eviction proceedings. PadSplit updates the Host on the Member’s move-out status.

As a Host, it is important to note the following:

While some Members may carry a balance or leave with a balance, losses are mitigated by dues recovery fees, advance payment and the $300 cutoff.
While the vast majority of terminated individuals leave their properties promptly and peacefully, a terminated Member may refuse to leave the premises. In these instances, Hosts are responsible for complying with all applicable laws to legally evict the individual. Hosts must move the Member into Eviction Status on their dashboards.

How is Member behavior managed within the PadSplit ecosystem?

While the majority of PadSplit Members are respectful and open to living in a shared environment, Member to Member issues will arise. The PadSplit platform provides the tools for Members and Hosts to manage these issues.

When Members have issues with other Members, PadSplit encourages them to try to talk it out. Sometimes, a simple conversation can solve the problem. Members can utilize the group chat or the ratings feature as well.

If a PadSplit rule has been broken, Members and Hosts are instructed to submit a rule violation report through their dashboard. Once submitted, PadSplit* will: send warnings where appropriate, examine evidence provided, view a Member’s rule violation history, and occasionally call other Members to corroborate. If the rule violation can be confirmed, PadSplit will remove one of the Member’s 3 Keys. When a Member loses all 3 Keys, their PadSplit Membership is terminated.

When a Member is terminated for losing all 3 Keys:

Their occupancy is ended and they are asked to vacate their PadSplit within 48 hours
The Member is banned from PadSplit and cannot return

Sometimes, Members contact PadSplit Support or submit a rule violation report that is violent in nature. PadSplit takes violence very seriously. In cases where violence is reported in a home, PadSplit will:

Triage the immediate report by reminding Members of their ability to call the police, file a TPO (Temporary Protective Order), or transfer to another PadSplit home
Alert the Host of the reported incident. The Host may then contact PadSplit if they wish to recommend termination of a Member named in the report.
Terminate the Membership of any Member named in a valid TPO
Determine if any further action will be taken on our part after an internal review

As a Host, it is important to note the following:

Most Members correct their behavior after a key removal. Our termination rate for 3 Keys is less than 2%.
While the vast majority of terminated individuals leave their properties promptly and peacefully, a terminated Member may refuse to leave the premises. In these instances, Hosts are responsible for complying with all applicable laws to legally evict the individual. Hosts must move the Member into Eviction Status on their dashboards.
For greater detail, we encourage you to explore the Payments and Member Management sections of our Host Help Center.

Move-outs, Terminations, and Evictions

Not every PadSplit stay is successful. When a Member is terminated for either collections or behavior, we take every possible measure to encourage them to move-out voluntarily. PadSplit communicates with the Member via phone, email, text and notification on Day 1, Day 2, Day 3 and Day 7 after termination. Each time we reach the Member, we will update you via email and via the presence box in their Member profile. If the Member has still not vacated by our last communication on Day 7, we will send you a packet of documentation to use in initiating the eviction process. If you would like to request the eviction packet before this date, please send an email to support@padsplit.com.

While PadSplit attempts communication with the Member remotely, Hosts typically send a representative to speak to the Member in person and/or check if the room has been vacated.

Under most circumstances the Member will move-out on or soon after the scheduled move-out date. If a Member refused to vacate within reasonable timeframe, a Host must move forward with the eviction process. It is important to note that PadSplit is not responsible for the eviction process and we will not provide legal support in these situations.

Tips for Success:

Communicate with the Member during the termination process. Answer all communications from PadSplit that ask for your approval or denial of actions that may be taken to save the Member from termination.
DO NOT be indecisive when it comes to the fate of a Member. If you would like to evict them, begin the process ASAP.
Move the Member to eviction status once you have made the decision to proceed. Doing this will:
- Prevent the Member from making payments that may impact the flow of filing for an eviction
- Ban the Member from PadSplit
- Keep PadSplit updated about the Member’s status
DO NOT take legal advice about evictions from anyone. Work with a provider who knows the rules and can make them work in your favor.
We suggest you do not retain a lawyer for most evictions, but follow the guidance of your property manager or local evictions contacts