PadSplit deducts two types of fees from Gross Property Income: a Booking Fee and a Service Fee.
- The Service Fee is equal to 8% of all member payments that are settled within the month.
- The only payments that are not subject to a Service Fee are the first 10 days of membership dues for a new member occupancy, which instead incur the Booking Fee
- The Booking Fee is equal to 100% of the first 10 days of membership dues collected for each member occupancy, using the base price of the room before any promotions are applied. The total Booking Fee can be calculated by dividing a member’s full price weekly rate by 7 to get the daily rate, and then multiplying the daily rate by 10.
PadSplit only charges fees on settled member payments - if a member fails to pay, no fees are charged.
Booking fees can be waived by sourcing a member through a referral or by transferring a member within your portfolio.
Read more about PadSplit’s fee model.
When do my members pay?
PadSplit offers members flexible payment schedules to increase their ability to make their payments. Members can choose their payment date and whether they will pay 2 weeks or 1 week at a time. This means that each of your members could pay on a different day of the week and at a different frequency. Members always pay in advance for their stay - for example, a member on a weekly payment schedule will pay for the upcoming week on their dues day.
My member paid, but I didn’t get the money in my payout this month - why?
Host Payouts for each month are calculated using only those member payments that actually settle (meaning PadSplit receives the funds from its payment processor) within that calendar month. Because member payments typically take two business days to settle, a payment made at the tail end of the month may not settle until the start of the following month. In such cases, that member payment will be included in the Host Payout for the following month, rather than the month in which it was initiated.
My earnings this month dropped/increased from a previous month - why?
PadSplit membership dues are assessed on either a weekly or biweekly basis, which is often incongruous with the calendar month and leads to inconsistencies in Host Payouts across several months. The difference can also be driven by on-time vs late-paying members. You can review line-item level collections transactions by downloading the CSV file on your Host Earnings Dashboard.
Tuesdays are the most common day for payments to settle. This is because all payments made on Friday, Saturday, or Sunday will settle on Tuesday. If a month has 5 Tuesdays, payouts will be higher than if a month has 4 Tuesdays.
Weekday Mix: Most card payments settle in 2 business days. Assuming no holidays in the mix, this results in:
- Monday collections settle on Wednesday
- Tuesday collections settle on Thursday
- Wednesday collections settle on Friday
- Thursday collection settle on Monday
- Friday collections settle on Tuesday
- Saturday collections settle on Tuesday
- Sunday collections settle on Tuesday
The dues paid doesn’t match what I calculated I would earn - why?
PadSplit only pays out on member payments that are collected and settled. If you calculated that your income would be 100% of your weekly room rate for a given room, there are a number of reasons you may not see that full amount:
- The member may have made a partial payment or no payment, and may be behind on rent
- The member may have paid toward the end of the month, and the money hasn’t settled
- The member’s payment plan may mean that their payments don’t align perfectly with the weeks in a given month
Read more about member collections.