Paying for your child’s college education is a major expense for families across the country. A student’s room and board comprises a big chunk of that expense, so HousingWire staffer Brena Swanson got some information from Orlando Regional Realtor Association President John Lazenby, with the Colony Realty Group, on whether it makes economic sense to purchase a home for your college student instead.
Owning a rental property is a business, Lazenby says, and should be treated as such. “Like most business ventures, a full understanding of the arrangement by everyone involved is key, even if your child’s friends are also tenants – it can be great, but it can also create some uncomfortable situations,” he says.
Lazenby lists the facts, pros, and cons of buying a home for a college student and provides some tips for those interested, like this:
Since it can take a while to see an increase in value that’s enough to offset the costs of buying and selling the property, be prepared to hold on to it for a while – purchase the property before a student starts school, and hold on to it for a few years after graduation (or through graduate school or siblings).