How to Scale and Manage 100+ Padsplit Rentals in Atlanta with Mel Whatley

Introduction: Why Padsplit Property Management Matters

Affordable housing is one of the most pressing challenges in the United States, and in cities like Atlanta, creative solutions like Padsplit co-living rentals are transforming the way people access affordable places to live. On this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He sits down with Mel Whatley, founder of PMI Atlanta West, a property management company that oversees more than 100 units, including 72+ Padsplits.

Mel shares insider strategies for screening tenants, avoiding problem neighborhoods, scaling systems, and providing consistent returns to investors. For anyone curious about how to operate co-living rentals at scale while still serving communities with dignity, this conversation is full of practical wisdom.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

What Makes Padsplit Rentals Profitable in Atlanta?

Investors often ask: Are Padsplits actually worth it? According to Mel, the answer is yes, when the property is set up correctly.

• Rooms with shared bathrooms rent for $160–$190 per week.
  
  

• Rooms with en suite bathrooms command $275–$300 per week.
  
  

• Larger rooms (15x15 or more) consistently attract long-term tenants and reduce turnover.
  

Neighborhood selection matters too. High-demand areas like Decatur and parts of Cobb County produce stable tenants who want clean, consistent housing. Meanwhile, investors should be cautious about heavily owner-occupied neighborhoods where co-living models may face resistance.

How Should Investors Screen Padsplit Tenants?

Tenant quality is the backbone of any successful Padsplit. Mel emphasizes strict screening:

• No evictions: Any history of eviction is an automatic disqualifier.
  
  

• Stable rental history: Applicants who jump frequently between homes are avoided.
  
  

• Income verification: Consistent income is required to reduce risk.
  
  

The surprising insight? Over 80% of Padsplit members are reliable. Out of nearly 500 rooms under management, only about 3% ever face eviction.

What Are the Biggest Challenges of Padsplit Investing?

New investors often worry about worst-case scenarios. Mel breaks down three of the most common issues and how to handle them:

1. Neighbor complaints – Usually about parking or trash. The solution: prioritize properties with ample parking and provide 2–3 outdoor trash bins.
   
   

2. Evictions – While rare, they can take up to six months in Atlanta courts. Having reserves set aside ensures investors can weather the disruption.
   
   

3. Member disputes – With good management and proactive communication, these are resolved quickly before they spread.
   
   

The lesson: thoughtful preparation (parking, plumbing, HVAC quality) prevents the majority of investor headaches.

What Does It Take to Manage 100+ Rentals?

Scaling a Padsplit portfolio requires systems. At PMI Atlanta West, Mel runs with:

• 4 full-time handymen to handle repairs.
  
  

• 5 virtual assistants in the Philippines for tenant support and admin.
  
  

• Trusted vendors for HVAC, plumbing, landscaping, and pest control.
  
  

• Daily accountability systems through WhatsApp and property management software.
  
  

This infrastructure allows his team to deliver “mailbox money” for investors—steady cash flow without the stress of daily property issues.

Key Insights for Affordable Housing Investors

• Rooms with en suite bathrooms and larger square footage create premium rents.
  
  

• Parking is critical. A Padsplit with inadequate parking will lead to neighbor complaints and tenant frustration.
  
  

• Proper plumbing and HVAC planning at the renovation stage saves thousands in long-term headaches.
  
  

• Strict tenant screening reduces eviction risk to under 3%.
  
  

• Scaling requires systems, staff, and a mindset of treating property management as asset management.
  
  

Best Quotes from Mel Whatley

“Our goal is to help you have what they call mailbox money. We handle everything so you can be hands-off.”

“If you have the right intention and care about providing a good home, the property will take care of you.”

“Rooms with their own bathrooms rent for $275–$300 a week, and tenants don’t want to leave.”

Frequently Asked Questions

How much can you earn from a Padsplit in Atlanta?
Depending on the setup, shared-bathroom rooms rent for $160–$190 per week, while en suite rooms earn up to $300 per week.

What neighborhoods work best for Padsplits?
Decatur, select parts of Cobb County, College Park, and Riverdale all perform well when managed properly.

How long does an eviction take in Atlanta?
On average, two to six months. Most tenants leave voluntarily once the process starts.

Do Padsplits face a lot of neighbor complaints?
Not when managed correctly. The biggest complaints involve parking and trash, which can be addressed during setup.

How many properties can one manager handle?
With the right team and systems, Mel’s company manages over 100 units, proving Padsplits can be scaled efficiently.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.