 College Daughter (by Taira [CA]) Jun 30, 2014 2:50 PM
 College Daughter (by S i d [MO]) Jun 30, 2014 5:20 PM
College Daughter (by Nellie [ME]) Jun 30, 2014 5:29 PM
College Daughter (by Taira [CA]) Jun 30, 2014 6:11 PM
College Daughter (by Barb [MO]) Jun 30, 2014 6:47 PM
College Daughter (by S i d [MO]) Jul 1, 2014 4:18 AM
College Daughter (by MC [PA]) Jul 1, 2014 4:47 AM
College Daughter (by WMH [NC]) Jul 1, 2014 2:40 PM
College Daughter (by Taira Price [CA]) Jul 2, 2014 10:32 AM
College Daughter (by Taira [CA]) Posted on: Jun 30, 2014 2:50 PM
Message:
Hi All,
My 19 yr old daughter will be living in my rental property RENT FREE for the next three years while attending college full time. This is my only means to help support her while she's in college. She has a part time job and a small student loan to cover food, tuition, books, gas, etc. The house normally rents for $1200/mo.
If we get a roommate and charge that roommate $600/mo rent, how do we write out the lease? Do I put them both on the lease for $1200/mo, but not actually charge my daughter? I ask this in the unlikely event that my daughter moves out, but the roommate stays. I want the roommate to understand that she would be responsible for the full $1200/mo unless she found another roommate. --71.93.xx.xxx |
College Daughter (by S i d [MO]) Posted on: Jun 30, 2014 5:20 PM
Message:
Interesting situation...
First, I think it's great that you're looking for a creative way to help you kid get an education and minimizing debt. College loan debt is out of control these days, and more kids are graduating today with the equivalent of a small mortgage. And some don't make it all the way thru but yet they still have the debt. Kudos to you for having a plan!
I am not a CA land lord nor am I a lawyer, but I am a parent of three children. None are college age yet, but what I plan to do when they get to that age if they stay in town is this:
The rent is $1200. My child will be responsible for the ENTIRE amount, BUT my child will also be the property manager for this and several other properties around the same neighborhood for which I will pay him/her a monthly fee of $600. My child will be a member of my LLC by that time with partial ownership and assigned duties as a Property Manager for the family business, which neatly allows us to side-step the Missouri law that says you must be a licensed real estate agent to manage properties for anyone besides yourself. It will then be my child's responsibility to find and screen roommates and collect rent. My child and the co-tenant will be jointly and severally liable for all rent. If either party wants out of the deal, they will need to pay the early lease termination fee, just like any other tenant(s). This will all be written down in a standard lease agreement, except the compensation will be dealt with on a separate agreement that the roommates never see or sign.
Sound harsh? Nope, just lays out the expectations clearly. If I am going to be supporting my child's college to the tune of $600 per month cash, Daddy is going to insist upon some basic ground rules such as year leases and following standard good business practices. The fact that I'm paying such a generous management fee for basically nothing beyond some lawn mowing and rent collecting is how I will show my love and support.
P.S. If your kid is well-motivated and skilled at finding good renters, perhaps he/she could look to do some other light work for other property owners around the campus and avoid college debt entirely! Showing property, mowing lawns, changing furnace filters and doing a quick walk thru a property once every 90 days, etc. for a small fee would be a useful task for many land lords. --108.250.xxx.xxx |
College Daughter (by Nellie [ME]) Posted on: Jun 30, 2014 5:29 PM
Message:
I think you need to think this through some more. Renting to friends or family is usually a bad idea. Especially to just out of High School family or friends. Frequently becomes party central.
I would suggest renting the bedrooms out. That is how many of the landlords do rentals in college towns. I think you would have more control of the situation this way and it might be more profitable.
Others with college rentals will be along with more suggestions of this type of renting. --70.16.xx.xx |
College Daughter (by Taira [CA]) Posted on: Jun 30, 2014 6:11 PM
Message:
Thank you, both for your feedback. Sid, I have been thinking along those same lines for years, but the truth is, now that she's actually pulling a full academic load (Sports Medicine) and a part time job (she pays all her bills, car insurance, cell phone, everything)she is overwhelmed and I don't think she would be able to spend the time required to properly manage the place, as much as I would love for her to do so.
And Nellie, I can understand how the party central idea would come to mind. To clarify, the home is in a very large city, not college town, and it is located 15 minutes by car from the university in a quite, established neighborhood. --71.93.xx.xxx |
College Daughter (by Barb [MO]) Posted on: Jun 30, 2014 6:47 PM
Message:
You could write the lease for $1200 per month and every month transfer $600 to the DD'S account for her half of the rent. Then she can complain, my mom even makes me pay rent (que eye-roll). Tell her if she gets a roommate she doesn't have to pay the other $600 :)
My DD was in a one bedroom until May 31, and didn't pay anything. My DS will be moving to a 2 bedroom. We will probably make him pay rent, but he should have the funds available to do so. Yes, a double standard. Just how it goes. --216.229.xx.xxx |
College Daughter (by S i d [MO]) Posted on: Jul 1, 2014 4:18 AM
Message:
Taira,
You work more than 40 hours a week, right? I'm guessing so: most land lords I know have a 40 hour a week job then spend night and weekends keeping up with properties. 55-70 hours a week seems to be the norm. And we still have energy and time for our kids. Getting all that done teaches us organization, perseverance, hard work ethic, patience, and a host of other good life skills. I think your daughter is probably sharp enough (and motivated enough) to get it all done. Property management--done right--doesn't take a lot of time. I'm not talking about having her change toilets and perform rehabs...just screen a roommate once per year or semester, mow a lawn now and then, and collect rent. Shouldn't average more than 1-2 hours a week tops. $600 / 2 hours is $300 an hour. Tell me where else she's going to find those kinds of wages!
Do whatever seems best. I think she'd benefit greatly from the added maturity and responsibility that comes with being a property manager. Plus knowing her "income" depends on successful management should help keep the "party house" to a minimum. --108.250.xxx.xxx |
College Daughter (by MC [PA]) Posted on: Jul 1, 2014 4:47 AM
Message:
My DD pays rent in one of my properties. She had no security deposit. We have lowered her rent and let things slide as well.Not parties but being late on rent. --174.55.xxx.xxx |
College Daughter (by WMH [NC]) Posted on: Jul 1, 2014 2:40 PM
Message:
I wish we had purchased a duplex back when the last kid went to school, as he ended up buying his own in the same city once he was out of school and working! Unfortunately there was no guarantee that he would stay in that city later and we didn't want to be long-distance landlords to strangers. --50.82.xxx.xxx |
College Daughter (by Taira Price [CA]) Posted on: Jul 2, 2014 10:32 AM
Message:
Sid, thank you for putting so much thought into this through the years and for sharing with me. You're absolutely right, Sid. I have had the same plan as you, and have known that was the right direction all along for all of the reasons that you listed. I guess I was feeling a little guilty about making her work for it since she already pays all of her other bills. (All of her college friends are completely financially supported by their parents, but she only has me.) Thanks for the nudge. I'm going to do it that way! --71.93.xx.xxx |
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