She is committing a fraud - she is going to put her own family as living there and not you and your friends. This means, among other things, that you won't be able to vote, you may have trouble getting credit and how are you going to pay the utility bills - gas, electric, water, phone?
What about insurance? Buildings and contents? Building insurance should be her responsibility but you should insure your own belongings. You won't show up as living there.
You have to wonder if she has a mortgage - if so, does the lender know she is renting it out? Is she declaring the rent to the tax office?
Too dodgy by half.