Wednesday, June 11, 2014
While it may seem like a smart idea to buy property for your son or daughter to live in while away at college, that decision can have big consequences. Zillow real estate investment writer and long-term investor Leonard Baron says that owning property and being a resident landlord is stressful, especially for a college student. Once your kid is out of school, you must also ask yourself if you will keep the property, maybe as a rental to other college students. Keep in mind that college students can be rough on properties, and it could become a big hassle. If you end up selling, you will pay significant transaction costs and will likely not make much money on the property.
The best thing to do would be letting landlords in the business of student housing handle rentals near college campuses. If you want to invest in a rental, buy a moderately priced property near where you live, so you can take good care of it and your tenants.
See Leonard Baron, Should You Buy Property For College Students? Forbes, June 9, 2014.