From Parent to – Landlord?

Green Escrow | Rental

Facing a significant amount of student debt, many college graduates are being helped by their parents who are buying property and then renting it to their children, often for an amount well below current market value. The rend is mostly in high cost cities and the properties are usually quite small.

Analysts say that the purchases serve two purposes: parents are helping their children who may be struggling to pay rent or to save for a downpayment as well as adding an asset to their own portfolio which should appreciate over time.