College Rental Properties - 5 Steps to Failure - What You Can Do to Save Your Student



Posted: Wednesday, December 03, 2008

by
Off Campus Housing USA

The College rental market is an untapped source of income and big savings for college parents and investors. Watch out there are major pitfalls to having your student be the landlord it could cost you thousands of dollars.The legal issues are another matter, here are some plain facts.

1) College Work is Hard Enough - The demands on your student of class and study time, maintaining grades leaves little time for the job of property manager. Property problems come out of no where while you are away or in the middle of the night. Students have enough to worry about this should be some other persons problem.

2) Room mates are Friends - The other students who live with you student are friends not strangers. We all know that friends don't always remain so when living together much less when one is in charge. Petty issues always come up who cleans, who doesn't, whose boyfriend or girlfriend moves-in or who wants a dog. How does your student handle these as a friend is different than when you make your student the protector of your investment.

3) Collecting Rents - What does your student do with uncollected rents, eviction? How should they handle I'll have it next week, next month? Dealing with their friends parents to collect rents and utility charges. Parents this is your investor job or hire a management company.

4) Maintenance Issues - A new home or condo that's easy call the builder if they have a good customer service program they'll take care of it. After 1 year or an older property backed up toilet, electrical problems, lawn cutting or a roof leak. These are not the issues to pile on a college student.

5) Where is the Fun? - College life is hard work, when do you have fun? Who is in charge when the students are off to spring break, home for the holidays or takes a semester abroad. If your daughter wants to go to Spain for a semester or year what happens now?

Students in College need to be Students in College. Most students can do the landlord job. The question is what are the benefits and to whom? The student? Probably not. The friends? No. The Parents? Maybe, but watch out for the downside it could cost you all the benefits you sought plus thousands of dollars more.

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