Episode 208: My Friend Who…. Wants to Buy her College Son a House and Rent the Rooms to His Friends with Dr. Jennifer Salisbury
Summary
This episode, My Friend Who… Wants to Buy Her College Son a House and Rent the Rooms to His Friends in Virginia, explores the pros and cons of parents investing in a rental property for their college-aged children. I review not only the financial considerations like mortgages, rental income, and maintenance costs to help listeners evaluate potential cash flow, I discuss the realistic issues that could affect shared housing setups, especially with first-time renters and remote owners. I offer practical advice on family boundaries, lease agreements, and managing relationships between student tenant roommates. The episode closes with expert tips and clear action steps for families considering turning college housing into a smart real estate move.
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In this episode, I talk about a conversation with a friend who wants to buy her college son a house and rent the rooms to his friends. On the surface, it sounds like a great idea: help your child with housing, build equity, and have the roommates cover the mortgage. But as a landlord, I immediately see the layers underneath that decision. I walk through what this really means, because once you rent rooms to friends, you are not just a parent anymore, you are running a business.
The Business Side of Helping Your Kid
I explain that if you are collecting rent, even from your child’s friends, you are a landlord. That means leases, documentation, rules, and understanding local tenancy law. It means screening tenants, even if they are friends. It means deciding who is responsible for damages, late rent, utilities, and conflict. Feelings do not override contracts. If something goes sideways, you will need to rely on paperwork, not relationships. This is where many well-intentioned parents get into trouble, because they treat it casually instead of like a rental business.
Friends, Roommates, and Boundaries
I talk about how quickly friendships can change when money is involved. If one roommate does not pay, who covers it? If someone moves out early, who fills the room? If there is damage, noise complaints, or conflict, is your child prepared to enforce rules with his friends? Being the owner means you are responsible, and being the parent adds another emotional layer. It is easy to imagine best-case scenarios, but as landlords we have to prepare for worst-case scenarios.
Risk, Reality, and Responsibility
I walk through the importance of understanding zoning, occupancy limits, insurance, and financing requirements before making a purchase like this. Lenders, municipalities, and insurers may see this differently than a single-family home for your child. You have to know the rules of the game before you play. You also have to ask whether your child wants to be a live-in landlord and whether they have the maturity and skill set to manage roommates who are also friends.
The Takeaway
I close by emphasizing that this strategy can work, but only if it is treated like a business from day one. Clear leases, clear expectations, written agreements, realistic budgets, and understanding that you are the one ultimately responsible. Buying a house for your college son and renting the rooms to his friends is not just a generous parenting move. It is landlording. And landlording requires systems, boundaries, and a willingness to enforce them.