PARENTAL: Mom and Dad make good landlords for college-age millennials

With today's high cost of education, thinking outside the box might keep a few extra dollars in your pocket.

One new trend is called parent-owned housing, and its popularity is growing among Millennials.  

With student-loan debt at an all-time high, and entry-level professional jobs in short supply, parents are exploring options that can help their children financially without draining their resources.

 Saving for college education takes discipline, sacrifice and as we all know, lots of money. Why not take some of those dollars and purchase a small house, condominium or townhouse for that college-bound kid?

There are many expenses when you send a child to college. Tuition is typically the most significant costs, but on some campuses it may not be the biggest. Dormitory, meals and general living expenses can also take a large chunk.

A better choice and a better return on investment might be the purchase of a piece of rental real estate. The added benefit is you already have trustworthy and responsible tenants, your child and his or her roommates — who you hand pick, of course!

Roommate rental income can help offset some of the mortgage and maintenance expenses and, once the student graduates, parents may be able to sell the property to another like-minded set of parents for hopefully a small gain.

This strategy can help parents offset the costs of paying for multiple years of on-campus living fees. Unlike a typical rental property, the parent landlords have a pretty good idea of how responsible that tenant is since it's their own child.

Being that the child and any roommates are college students and young professionals, the outcome should be pretty favorable.

This arrangement becomes even more beneficial if you have other children who will be attending the same college. The good news is even after the kids have finished college this could continue to be a steady income source for the future.

If you decide to sell the property, you may have a ready-made buyer in your child. Many college graduates start their careers in the same town where they graduated. They may be interested in purchasing that property for their own benefit.

If your child is not interested in buying the property, most college towns offer a steady stream of home buyers looking to take advantage of the same college-town rental property benefits that you've enjoyed.

It's always advisable to speak with a qualified financial professional who can discuss with you the many options available when it comes to creating a solid college-savings plan.

Edward Sota is a partner at Safeguard Investment Advisory Group, LLC. For 20 years he has helped families with financial planning, wealth management, life insurance and long-term care insurance, as well as advanced estate planning. Sota's process is comprehensive and includes extensive client input, the creation of a realistic financial plan and ensuring client understanding. Sota attributes a great deal of his success to his family, which includes his wife, Kathy, and his three children: Hailey, Alyssa and Christopher. He's also an active member in his church and assistant scoutmaster for Boy Scout Troop 454 in El Dorado Hills. He holds California Life-Only and Accident and Health licenses (#0C16747), holds a Series 65 license, and is registered through the Financial Industry Regulatory Authority (FINRA).