For most people they seem to be. And even in the midst of a stalled economic recovery, they’re only getting higher.
According to new data from Reis Inc., a New York company that tracks real estate, rents in Boston hit record highs in the last quarter of 2011 mostly because of the increased rental demand and declining inventory.
Average monthly rent in the metropolitan Boston rental market (loosely defined as within Rt. 495) jumped up to $1686 in the last quarter compared to $1649 the last year at the same time and $1600 the previous year – and of course, much higher than that for apartments in downtown Boston neighborhoods like the Back Bay, Beacon Hill, and the South End. Nationally the Boston rental market ranks as the 5th most expensive behind New York City, San Francisco, Westchester County in New York and Fairfield County in Connecticut.
But can you save money on your next Boston apartment in a surging market? Possibly. Here are a few tips you can use to help you land the apartment you love and perhaps save a few bucks:
For most months, start looking AT LEAST 90 days before move in. If your desired move in-date is September, start early February. If you’re a student, start looking before you leave for Christmas break. Starting early will allow you to see the most inventory early. When there is more to choose from, you have more negotiating power. If you have a back up plan, it will be easier to walk away from a property that’s a tad out of your budget when the owner won’t budge.
Know the market. If you’re unfamiliar with how much a one bedroom is going for, it makes it tough to know where you can start with the negotiations. Searching on Craigslist is a VERY poor barometer of what the market has to offer. Be careful of “bait and switch”. Talking to experts such as leasing agents will give you a great idea of where to start. Consultations are FREE and no-obligation. Use us to your advantage.
The rental market is still real estate. Although most owners are very familiar with market value, they do like not having turnover. So a great tenant will often trump higher rents. Give great references; show you would be a great fit. Then have your agent ask for a reduction. But make sure it’s not an insulting low-ball offer. 5% is a good point to start. On a $2,500 apartment, that could save you $1,500 over the term of the one-year lease.
There are other ways to save money from your lease besides what you write a check for every month. See if the building offers heat included in the rent. If not, ask your owner if he/she will cover your heat bills. Or if you need a parking spot that’s offered for an additional cost, ask for a reduced amount on the parking spot.
Owners sometimes have to pay property managers to maintain the apartment and the building. Are you handy around the house? Let the owners know. Barter your services such as shoveling snow, cleaning the common areas, or unclogging a neighbor’s sink.
There is approximately a third of the rental market inventory for rent now than there was two years ago. And that number is steadily decreasing. Make sure you go into the process with a strong mindset and heavily armed with education. Seek out the help of a Boston apartment leasing professional to help with the tedious and overwhelming task of finding a new place to call home. In the end, you’ll save time, money and frustration.
Happy Hunting!
To help you find the next apartment in Boston for you to put these 5 Ways to Negotiate in action, start with our map based Boston apartment search engine – see all listings mapped by location.
