Real Estate Investment 101 (College edition)
Let's talk about:
Buying vs. Renting for Your College Student
By Liz Koehler, Realtor® with Kenney & Co Group at KW Consultants Realty
Is there a better way to pay for housing in the college years? Sometimes the questions we ask our clients are the very same questions we're asking ourselves.
Every year around this time, families ask our team the same question: Does it make more sense to buy an off-campus home or rent one?
A few weeks ago, after writing the first rent check for our son's off-campus house (ouch), my husband and I found ourselves asking that same question. It's a conversation our team has had with many clients over the years, and one our family has revisited more than once. Before making a decision, Paul and I talked through the same questions we encourage every Kenney & Co. client to consider.
For our family, renting makes more sense right now.
Dayton is close enough to visit, but not close enough for us to comfortably own and manage an investment property from Central Ohio. We had to be honest with ourselves about whether we wanted the responsibility of owning a rental property that wasn't close enough to keep an eye on.
More importantly, Tommy has only two years of school remaining, and we don't really expect him to stay in Dayton after graduation. The timeline simply didn't make sense for us.
Would our answer have been different if off-campus housing had been an option during his freshman year?
Maybe.
If he were attending Ohio State instead of UD?
Possibly.
If we had younger children who were likely to attend the same university?
That might have changed the equation, too.
That's exactly the point. There isn't a universal right answer. There is only the answer that's right for your situation.
Contrary to what you might expect from a real estate team, we're not here to tell everyone they should buy a property. We're here to help our clients make smart real estate decisions based on their goals, finances, and timeline.
For our family, the circumstances made the decision surprisingly clear. For someone else, those same circumstances might point in a completely different direction. That's why we encourage every client to thoughtfully evaluate both buying and renting before deciding what's right for their situation.
When Buying Makes Sense
In some situations, buying a home near campus provides a place for a student to live today while creating an opportunity to build wealth over time. If the numbers work, some or all of the monthly housing payment may go toward paying down a mortgage on a property you own rather than toward rent. Over time, that property may also appreciate in value.
After graduation, that same property might become:
A long-term rental property
A home for a younger sibling attending the same university
A property you sell after building equity
Depending on your goals, those possibilities are worth exploring.
The Best Investment Is the Right Decision
The best investment is the one that aligns with your goals, your finances, and your timeline. That's why a thoughtful comparison should include much more than simply comparing a mortgage payment to monthly rent.
You'll also want to consider:
Property taxes
Homeowners insurance
HOA fees (if applicable)
Maintenance and repairs
Utilities
Closing costs
How long you'll own the property
Your plans after graduation
Whether you'll hire a property manager or manage the home yourself
Sometimes those numbers make buying an easy decision. Sometimes they make renting the clear winner. Either way, we'd love to help you evaluate your options. Our goal isn't to convince you to buy. It's to help you make the best decision for your unique situation.
Homework
If you're wondering whether buying a home for your college student could make financial sense, here's a great place to start.
Choose a rental your student would realistically consider and map out the true cost of renting. Then let us help you compare those numbers with the true cost of owning a similar property.
Together, we'll compare the annual cost of renting to the annual cost of owning. We'll look beyond the mortgage to include property taxes, homeowners insurance, HOA fees (if applicable), maintenance, and other costs that should factor into the decision. Just as important, we'll talk through the non-financial considerations, including your timeline, your long-term goals, how involved you want to be as a property owner, and what happens after graduation.
The goal isn't simply to compare costs. It's to understand the full picture so you can make an informed decision that's right for you.
Not sure where to start? That's okay. We'd be happy to help you gather the numbers and work through them together.
EXTRA CREDIT
If you'd like to dig a little deeper, one of our team's favorite books on long-term real estate investing is The Millionaire Real Estate Investor by Gary Keller.
Don’t let the title fool you. This book isn't about getting rich overnight or owning dozens of rental properties. Instead, it focuses on making thoughtful, informed real estate decisions that can build wealth over time.
It's an excellent place to start if you're curious about real estate investing but aren't sure where to begin.
Office Hours
Have a question? We’d love to help. Whether you're exploring an idea or ready to make a move, we're always happy to talk through your options and help you make an informed decision. Let’s connect.
Kenney & Co Group at KW Consultants Realty
Local Roots. Smart Moves. Lasting Wealth.
📍 Based in Central Ohio | Helping buyers, sellers, and investors
Teresa 📞 614-975-8370 | 📧 teresakenney@kw.com
Sheila 📞 614-264-1800 | 📧 sheilagibbons@kw.com
Liz 📞 614-517-2268 | 📧 lizkoehler@kw.com
🌐 kwkenneyandco.com | 🌐 teresakenneyrealty.com