ROI Realty Partners- Market Watch: Charlotte's Growth & Co-Living

The Charlotte region continues to experience strong population growth, with thousands of new residents moving here each year. This influx of people brings tremendous opportunity for our local economy—but it also creates ongoing pressure on housing supply. 

Just today, Axios released new data showing the number of people moving to the Charlotte region is continuing to increase, estimated at about 157 people/day (Click here to go to the article). As demand outpaces traditional rental options, creative housing models are stepping in to fill the gap. One example is PadSplit, a co-living marketplace that allows property owners to rent out individual rooms in a home rather than the entire property.

Here’s why this matters:

• Housing Demand: More people are competing for affordable places to live, and flexible options like PadSplit help address this shortage.

• Investor Opportunity: Renting by the room often generates higher cash flow and more stable occupancy compared to traditional leases.

• Community Impact: These models expand access to affordable housing for

  essential workers, students, and others who need cost-effective solutions.

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What is PadSplit?

PadSplit is a co-living marketplace that helps property owners rent out individual rooms in a house. Instead of leasing the whole house to one tenant or family, you rent by the room to multiple tenants. PadSplit handles tenant placement, collections, and some aspects of property management while you (the owner) provide the property.

*Furnished finders is another platform that offers room-by-room renting/listings (Co-living)

Key Benefits for Investors

1. Higher Cash Flow

   • Renting by the room typically generates more total rental income than a traditional lease.

   • Example: A $1,600/month single-family rental could make $3,000–$4,000+/month when rented by the room.

2. Consistent Occupancy

   • PadSplit markets the rooms for you and handles incoming tenant leads.

   • Tenants are typically working professionals, essential employees, or students looking for affordable housing, so demand tends to stay strong.

3. Shorter Vacancies

   • If one tenant moves out, you only lose income from that room (not the entire property, like with a single-family tenant).

   • Multiple streams of income smooth out vacancy risk.

4. Mission-Driven Angle

   • PadSplit frames itself as solving the affordable housing shortage while creating strong returns for investors.

     
     

Things to Watch Out For

1. Upfront Renovation & Compliance Costs

   • Most properties need modifications: additional bathrooms, locking bedroom doors, possibly fire safety upgrades.

   • You need to stay compliant with local zoning/boarding house regulations (some cities are strict, others more flexible).

2. Management Style

   • While PadSplit helps with tenant placement, investors are still responsible for property-level maintenance (repairs, cleaning, utilities).

   • Turnover can be higher than with long-term rentals since many tenants stay 6–12 months instead of years.

3. Tenant Base

   • Many tenants may have credit/background challenges. PadSplit does the screening, but you should expect some higher turnover.

4. Utilities & Furnishing Costs

   • Rooms are rented furnished, and utilities are included in the rent. These are your expenses, so you must factor them into cash flow.

     
     

PadSplit’s Requirements (General & Charlotte-Specific)

Utility & Amenity Standards

• Essential utilities: Every PadSplit property must have water, electricity, Wi-Fi, and waste service activated before listing. ( PadSplit)

• Internet: Wi-Fi is a core amenity—properties lacking Wi-Fi are less desirable, and you can adjust pricing accordingly. (PadSplit)

• Security and access: Hosting a smart lock system is highly recommended. It allows member self-move-in and the ability to deactivate access codes quickly when members move out. (PadSplit)

• Heating & cooling: Safe heating is required (space heaters are not allowed). Air conditioning may depend on local code and climate—you’ll want to ensure residents’ comfort. (PadSplit)

  
  

Location & Layout Preferences

• PadSplits tend to perform best when situated near public transit or employment centers. (PadSplit)

  
  

Maintenance Expectations

• Expect more frequent upkeep compared to a traditional rental. PadSplit recommends:

  • HVAC servicing annually, air filter changes quarterly, and biannual coil cleanings

  • Regular roof inspections, pest control, landscaping maintenance, and attention to drainage/gutters to avoid water issues.

Charlotte, NC – Local Regulations & Zoning

Occupancy Rules

• Charlotte zoning allows up to six unrelated individuals to live together in a single-family home without needing a special permit. (City of Charlotte)

• If you intend to host more than six unrelated people (which PadSplit models sometimes exceed), you'll need to verify zoning with the city—overoccupancy may lead to violations.

  
  

Permitting & Use Changes

• Under Charlotte's planning rules, converting a property’s use (e.g., from single-family to boarding or co-living) may require a Change of Use permit. You’ll need approval from zoning services. (City of Charlotte)

• Other permits might be triggered by any physical changes, such as installing new bathrooms or structural modifications. Check the City’s LDIRL permit and Mecklenburg County building permit requirements via Accela. (City of Charlotte)

  
  

Permitting Fees & Timeline

• A Zoning Use Permit costs $330, while a Residential Single-Family review fee is around $70 (as of FY25). (City of Charlotte)

• Permit review timelines typically take 3–10 business days depending on the application stage. (City of Charlotte)

Zoning Summary Table

To date, we have 3 clients partaking in co-living and are having great success! Click hereto go to one of our clients' latest PadSplit listings in Charlotte!