Parents should consider purchasing off-campus quarters for their children either prior to entry into college or during the first year of college... Usually, colleges require freshmen to live on-campus the first year. After the first year, most students are allowed to either live on-campus or off-campus. Buying off-campus housing has tax advantages, such as, paying your son or daughter a management fee, and your trip to visit the son or daughter while inspecting the property. These expenses are all potential tax write-offs for the parents. The management fees paid to the son or daughter could be used by the student to pay part of their tuition and/or book fees. After your children have finish school, there are pools of potential renters that are willing to rent your property or you could sell the college rental via a 1031 tax-free exchange and buy a rental condo in the sun that you can periodically enjoy.
If the school offers off-campus living for their students be sure to check what their rental rates are, so you can offer a competitive rate and therefore be profitable. Another aspect to check is to inquire if the college or university offers private homes as rentals to its faculty. If so, what is the referral fee?
Another suggestion, parents should think about "condo" rather than "single-family dwelling." Students rarely prioritize maintenance and upkeep issues that ultimately protect your investment. A condo eliminates chores such as grass cutting and gutter cleaning that need to be handled in a conventional home.
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