11-bedroom PadSplit still operating in Gwinnett neighborhood illegally months after owner fined

GWINNETT COUNTY, Ga — Months after a Gwinnett County home was fined for operating at a boarding house illegally in a single-family neighborhood, the operation is still in business.

Channel 2 Investigates has been reporting on similar issues across metro Atlanta for four years. The company PadSplit operates like a modern-day boarding or rooming house where people book a room online and stay by the week.

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Channel 2 Consumer Investigator Justin Gray learned that the four-bedroom home has been split up into 11 bedrooms, which are all still for rent.

Neighbors said they knew something was up when the owner turned the front yard into a parking lot and added a giant fence.

“They said, ‘Well, we have a big family,’” Jim Saleh said. “And I said, ‘How come you have such a big parking lot?’ And they said, ‘Well, we have a lot of cars. We like cars.’”

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Saleh complained to the county since the home is still zoned as single-family.

Last July, the owner was cited for multiple violations. In October, they paid a $250 fine for operating in a single-family zoned neighborhood.

But neighbors noticed that didn’t stop the home from continuing to operate as a PadSplit.

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“I don’t know what the hold-up is,” Saleh said. “I mean, they’re breaking the law every single day. I’d be ok if they fined him $250 for every occurrence, which is every single day, but it doesn’t seem to be happening.”

Earlier this month, Channel 2 Investigates was in Atlanta Municipal Court, where the city announced it would not continue with its case against a PadSplit in Collier Heights for lack of evidence.

Gray asked Atlanta councilman Michael Julian Bond how the homes are getting away with it.

“When you have a hotel, you know, next door to you, that’s got to decrease your property value. No one wants to live next to a monstrosity like that,” Saleh said.

PadSplit said in a statment:

“PadSplit does not own this home. It is one of the homes listed on our marketplace, which provides access to all-inclusive, affordable housing through co-living.”

Gwinnett County said it is reopening its investigation and looking to issue new citations. They are also looking into how to remove the listing from online platforms.

“I think they’re just doing it and waiting to get caught,” Bond said.

Gray reached out to Gwinnett County about the Lawrenceville PadSplit.

A spokesman issued a statement, saying:

“We have opened a new case on the property and are coordinating with the Gwinnett Environmental Health Department to issue additional citations to the owner. We are looking at additional tools we can use as well to promptly compel the owner to stop this unpermitted use and remove the listing.”

Saleh said the property takes down the value of his neighborhood.

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