Parent Landlord by Heather Hilder on August 6, 2019 “Which Landlord are You?” Parent Landlord The archetypal multi-property “professional” Landlord probably only accounts for about 50% of all Landlords. Here we discover the Parent Landlord. The rest come in different guises: The “Accidental” Landlord, The “Pension” Landlord The “Inheritance” Landlord and, in this article, The “Parent” Landlord Parent Landlord Rent Many parents fork out huge amounts in rent during their children’s university years. However, a smart alternative can be to buy an investment property in the relevant university town instead. Although buy-to-let is usually seen as a long-term investment, the rent received from rooms let out to your child’s student friends during their degree years can often cover any mortgage payments. This could mean that your own child might effectively stay there rent free! It’s also good to know that your young-adult/child can choose their co-tenants! Landlord Property Following university, these investments are in constant demand from other parents in a similar position. Interestingly, due to continual demand for student accommodation, many Parent Landlords subsequently decide to keep the property following graduation day as a long-term investment. Aside from the student opportunity, other parents buy an investment property and rent it to their children at an affordable discount until such time as the child can afford a place of their own. They could alternatively switch from paying rent to covering the mortgage payments instead. What better way to help them responsibly manage their way onto the property ladder? Rental Investment A number of grandparents have recognised that an investment property also makes a great investment from birth. The investment could provide a “free home” when their grandchildren reach say 18 or 21. If you fall into any of these categories, please contact us on 01273-735237 for helpful strategic advice on how best to take advantage of the opportunities on offer for the generous/smart parent or grandparent! Read our blogs on the three other forms of Landlord ownership: The “Pension” Landlord, The “Accidental” Landlord and The “Inheritance” Landlord.
