Why Owning your Kids Student Rental is Great Opportunity

Decreased Cost of Living and a Solid Investment

While the cost of housing has been on the rise, owning a property can help you offset this by building equity instead of paying rent. Rent in university towns is often one of the largest expenses students face—sometimes even surpassing tuition. But unlike rent, which disappears each month, your mortgage payments go toward something that grows in value over time.

Additionally, when landlords charge rent by the room, they can significantly exceed the average rent for an entire unit. As an owner, you can take advantage of this structure to help cover mortgage payments, maintenance, and utilities, potentially generating a positive cash flow while your child lives rent-free.



Even if the rents don’t result in a positive cash flow, the property is still likely to make a significant return on your initial down payment investment. Real estate in university towns like Guelph typically appreciates over time, meaning that even if monthly expenses aren’t fully covered, the overall value of the property could increase significantly by the time your child graduates. This makes it a solid investment for the long term, offering both huge potential savings and growth in equity.

Financial Benefits and Secondary Residence Perks

Purchasing a student rental as a secondary residence comes with unique benefits when it comes to financing. Secondary residences often qualify for different mortgage terms than investment properties, potentially offering more favorable rates or requirements. This can make buying a student rental even more financially attractive.
On top of that, with Guelph’s housing market continuing to rise, you stand to gain significant equity by the time your child graduates. And since the property can be rented out to other students, it can help reduce the cost of university and even generate additional income. Whether you sell after graduation or hold on to the property, it can be a valuable asset that supports your family’s financial goals for years to come.

A Great Investment Opportunity for All

Even if you don’t have a child heading off to university, student rentals can be a fantastic addition to your investment portfolio or even a smart first-time investment. With strong demand for housing in university towns, these properties can offer steady rental income and long-term growth potential. Investing in a student rental gives you the flexibility to either continue renting to students or eventually convert the property into something else down the road, making it a versatile option for both experienced and first-time investors.