College Rental - Home for your child to live in w/roommates

[Brian Henry]

Has anyone bought a home out of state for their child and roommates to live in?  This is our 1st venture into a "rental property".  We are putting our son on the loan as he will be the part-owner and occupying the property.  I have a number of questions about the right way to do this and things to be thinking about...would love to hear from someone else who has already done the same.  Thanks!

[Bart H.]

I wouldn't put them on the mortgage, like others have suggested, it can trigger taxable events etc.

I personally would want to keep control of the situation by having complete ownership and then just have my kid be responsible for being a property manager as his way to live in the house.

Be clear that there are different hats (as Dave Ramsey says), when your kid is over for Thanksgiving meal, you have your papa hat on.  When you are collecting the rent, or are demanding they clean up or pay for damage you have your landlord hat on.  You have your boss hat on when discussing how to collect the utility payment with your 'property manager' from one of your 'sons' roommates.

If I did it, make it perfectly clear, son or not, you expect the rent to be collected and paid on time, the lawn maintained, etc etc.  And know what you would do if they didn't pay, have that discussion up front so there are no misunderstandings.