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You can buy a one-bedroom condo for your student to live in by themselves. However, a two-bedroom unit will allow for a roommate and the rent from the roommate can supplement the mortgage payment. If you find a three-bedroom unit or home, the rental income from two roommates can help the monthly cash flow even more.

Check the local ordinances for occupancy limits in the community where you want to buy. You may find that five students cannot live in one property. In Boulder, zoning rules allow three unrelated people in an LRE zone and four unrelated people in an MRE zone.

Roommate Lease or Rental Agreement

Even though the potential roommates are typically close friends, have each roommate sign a written rental agreement. Consult with an attorney for specific format and wording. The agreement should cover all the items found in a residential lease such as:

• Term
• Rental Rate and Due Date
• Security Deposit
• Notice to Vacate
• Utility Payment Agreement
• Maximum Occupancy
• Parking
• Pets

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