College Student and – Landlord?

Don’t laugh! It may not be as far-fetched as it sounds. As college housing costs continue to rise, you may want to check out the housing market in the town where your child attends school. Buying a house in a college town can provide your child with a place to live and bring in rental income from other students to help cover your expenses. But don’t jump in just yet. Consider the following before you start house hunting. How’s the Market in Collegetown, U.S.A.? Compare the costs of owning a home to renting in the area. If rents are high relative to overall home ownership costs, you may benefit if you buy a house and rent out the extra rooms to other students. And, if you have more than one child attending college in the same town, buying a house there may be a no-brainer. Is Your Child Ready for the Responsibilities? A home is a big investment. Talk to your child about the responsibilities he or she may have. If tasks such as shoveling snow or mowing the lawn will be part of the picture, make sure that your child is willing and able to do these things. Do You Have a Long-range Plan? Think about what you’ll do with the property after your child graduates. If you intend to hang on to the house and rent it out to students, be certain you have the time and resources to be an absentee landlord. Or check out the costs of management companies in the area that could take over the task of renting the property for you. Is the Location in Your Post-retirement View? College towns often attract retirees because of their educational and cultural opportunities. If the area appeals to you, you might buy the home for your college student and consider living there in the future.

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