Renting part 7: Timing and Negotiation

Timing is everything:

The rental market in Boston is very seasonal. 70% of the rentals in Boston happen on September 1. This is because of the sheer number of colleges in the area all start their term in the fall. Then, when students go on to become professionals they tend to stick with the September cycles because they don’t want to break their lease. This cycle keeps Boston renting on September 1. This is so predictable that some landlords will start renting their apartments as far as 9 months in advance for September 1. What does this mean for you? It is a double edged blade. There is more stock for September 1, but the rents will be higher for September 1. After September 1, if an apartment is still vacant, the price will fall, sometimes drastically. As the weather gets colder, the rents fall along with the number of available apartments. If you are after a deal, and don’t mind moving in the snow, then the October to December time frame is where you will find it.

Parking:

Parking is difficult in Boston. A parking spot in the city will cost anywhere between 200 and 500 dollars. In most of Boston however, there are parking permits available for residents of the area to park on the street. You can get a parking permit by taking your lease to city hall. Keep in mind however that you must have you car registered in Massachusetts to do this.

Offers and Negotiation:

It never hurts to make an offer, but be careful not to over negotiate. The price of an apartment is set by the landlord at a certain price. It never hurts to make an offer for a lower price or different terms. With some large landlords, the prices are set and they will not negotiate on the price but they may be open to some other sort of perk such as free rent, gift cards, or waiving the amenitiy fee. Others do have some room to be flexible. Smaller and independent landlords are usually more open to offers. When making an offer be sure not to make the terms too complicated. Keep it simple and choose where you want to gain, wether it is the up front cost, the total rent, the fee, or some other aspect. Choose 1 item.

For example, 100 dollars off rent, or half fee, or first and last, no security deposit.

A bad offer would read as follows: 50 dollars off rent, half security deposit, move in a week early, install track lighting in the living room.

The second offer has little pieces that may add up to the same total benefit as the first but it is complicated and may make the landlord think the potential tenant is going to complain about every little thing. Similarly, when you make an offer, keep it to a maximum of 3 steps. For example:

Agent: offer

Landlord: Counter offer

(maybe) counter counter offer

Anything more than this will make the prospective tenant seem high maintenance and be less attractive as a tenant. I have seen landlords turn people down on this alone. In summation, keep it simple.

While I am on the subject, there are times when to make an offer, and times not to make an offer. If you are in love with the unit, don’t make an offer. By making an offer you are running the risk of someone else walking up and offering full asking.