Parents Turning into Landlords: Investment Opportunities in College Towns

When Candice St. Pierre's daughter announced her preference for off-campus living, St. Pierre saw it as an opportunity to avoid the pricey dorm-life.

St. Pierre, now 53, mentioned, "Dormitories come with costly added expenses, including mandatory meal plans. We bypassed that option entirely."

For the initial two years of her studies at the Savannah College of Art & Design, the daughter lived in off-campus apartments at a cost of $1,000 monthly. Frustrated by inconsistent lease agreements and unexpected charges, St. Pierre sought a more practical solution.

In 2024, she purchased a Victorian house in Midtown Savannah, Georgia, for $485,000, marking her largest real estate investment. By transforming part of the living area into an extra bedroom, she arranged for four additional tenants, resulting in $3,500 monthly rent income—enough to cover the $3,494 mortgage.

Convinced she made a sound financial choice, St. Pierre anticipates the property will prove to be profitable in the future, with options to retain or utilize it as a rental or vacation spot.

Transforming into Landlords: A Lucrative Trend for Parents

Increasing tuition fees and accommodation costs are driving parents towards property investment in college locales, viewing it as a side-hustle. The prospect of renting out spaces to cover the mortgage entices entrepreneurial-minded individuals, even if only breaking even.

According to Mortgage Research Network, buying had its advantages in 23 of 121 assessed markets, predominantly small towns in the South where properties could cost less than dormitory fees.

Despite potential profits, managing properties for college students, especially one's own child, involves significant responsibilities and occasional urgent issues.

"Being a landlord means being ready to solve problems at odd hours," St. Pierre explained, highlighting the demanding nature of property management.

Case Example: LeAnne Carswell's Property Purchase

Following a similar path, LeAnne Carswell decided it was more viable to buy a property for her son attending Clemson University than continue paying high rental fees.

Opting for a townhome priced at $227,000 and paying in full, she avoided mortgage fees entirely while charging her son’s roommate $775 monthly.

Carswell noted she wasn't keen on losing $12,000 annually for housing costs, emphasizing a desire to potentially earn from this investment someday.

College Towns as Smart Investments

Not all parents merely break even. Karen Yould, from Newport Beach, California, saw a substantial return after buying a property in Montana for her son and his fiancée.

Her intention was to support them by reducing living costs while expecting minimal financial gain, yet she ended up selling the home for $415,000, nearly doubling her initial investment.

Yould confirmed that investing in college towns can be advantageous given their constant demand and vibrant nature.