If you’ve searched any Boston apartment website in the past few weeks, or even months, you’re bound to have run into several apartments for rent with leases that start on September 1, 2010 . So what gives, you’re asking? Why are there rentals for September already and hardly any rentals yet for June, July, or August?

The answer is that a majority of Boston landlords try to accommodate the school schedule by having leases start/end right around the September 1st date in order to attract undergrads, grads, and employees from one of the thirty colleges here in Boston. With more supply and demand for rentals on this schedule – and the turnover that comes with students who graduate, move, and/or switch apartments – it should come as no surprise that these rental listings are posted as early as February to attract the eager crowd.

Another reason for the focus on September 1st apartment leases in Boston is students are often out of the city during the summer and therefore can’t look at apartments during the summer. This means that going by the industry standard lease up time of 30-45 days prior to move in can’t apply to these renters as they need to start looking in May at the latest. Since the rest of the summer months don’t tend to apply to this school schedule, the advanced notice from residing tenants is not needed as the apartments are unlikely to be rented to students, hence the reason you don’t see as many rental listings posted yet for these (summer) months.

If you are looking for a Boston apartment rental for move in during any other month but September, I would suggest starting your search 30-45 days prior to your move. If you are looking to move in September, you can start as soon as you’d like, but get a move on it if you’re looking for an apartment near BU, Northeastern, Berklee or Boston Conservatory, they’re renting quickly!

Boston is the home to 27 colleges and over 100,000 undergraduate students. With a high number of those students residing off campus, it comes as no surprise to see an entire apartment building filled with a majority of undergraduate students. From Dexter Park in Brookline, Audubon Park in Audubon Circle, to the Atrium in Packard’s Corner, Boston University students especially, make up a good percentage of the residing population. BU’s tuition is priced at such a high level that it is no surprise that students who can afford the tuition can also afford to live in a luxury apartment building. The same goes for many of the other schools in the city. Why is it then that some landlords and apartment buildings chose not to allow undergraduates even when they can afford it?

Why Would Landlords not allow Students?

Of course there’s the perception that undergraduates will wreck the place with their parties and hooliganism. Moreover, when presented with tenants of equal financial stability, a landlord would rather not have to put up with the headaches that might come along with their undergraduate tenant if they don’t have to. Buildings like the Trilogy, Boylston 1330, and Church Park (to name a few) are some examples of these landlords. Since age is a protected class and cannot be used as discrimination when choosing tenants, even a 50 year old undergraduate student (who writes that they are such on their application) would be turned down from these buildings according to their “no undergraduate” policy. Student status is not a protected class, therefore landlords are able to discriminate based on a wide variety of criteria relating to students. For instance, certain apartments are known to expand their no undergraduate policy to include law school students. To these landlords, there’s nothing worse than a know-it-all law school student threatening to sue you as a class exercise. Again, law school students are also not protected in MA, and therefore, can legally be discriminated against when choosing tenants. Beyond law school students and undergraduates, the other most commonly, but legally, discriminated against class is the pet owner (see Pet Friendly Boston Apartments).

Ironically, many of the apartment buildings that allow pets do not allow undergraduates. Interpret that as you will. Some students have been able to bend the rules and work their way around these policies by having a parent sign for an apartment, however, this is not advised as it could result in eviction. The best advice I have is do the research to find out which apartments will allow undergraduates to live there before viewing an apartment.

Historically, apartment rental turnover is at its peak throughout the summer up until the city’s busiest move in day—September 1st.   During the recent tough economic times and a flailing nationwide housing market, the seasonality and influx of college students created20 a relatively stable volume of apartment rentals; however, it did affect the price tags.

MLS (Multiple Listing Service) data will have you believe that the average monthly rental price from 6/1/2009 to 9/1/2009 was $2,293, which is the same as the amount paid during the same period in 2008. What is neglected to be told in this data, besides the fact that it covers such a small percentage of the overall rental market, is that in many cases, landlords have been picking up some, or all, of the tab for brokerage fees.  Broker fees generally cost the landlord or tenant (or a combination of both) one month’s rent paid upfront at the time of lease signing.  In 2008, and even more so in 2007, I saw more tenants picking up the bill over landlords–however having seen it first hand–this year’s rental season was dominated by negotiation and landlords paying or splitting broker fees.  With broker fees typically amounting to as much as one month’s rent, the indirect result would raise average 2008 rents to roughly $2,500, making 2009 numbers look far less stable.  However, a difference of roughly $200 per month is unfortunately not the only issue that landlords have negotiated on.

Over recent months, landlords have taken fewer security deposits and/or last month’s rent, as well as offered more concessions, and they still saw their properties sit on the rental market for roughly 12 days longer than last year.  The first point is an obvious one. With unemployment so high and our national savings rate increasing, it’s no wonder that renters are no longer willing to shell out four months of rent upfront. Secondly, concessions have come in a variety of forms, but most recently in the form of free rent for up to two months.  Luxury apartment buildings like the Watermark in Kendall Square and the Atrium by BU are currently using this technique to fill their vacancies in hopes that they will avoid leaving units vacant during the winter when rental turnover really dies down.  Some other forms have included waived amenities fees, including certain utilities, and discounted parking.

With all of these concessions and lowered upfront costs, you’d be surprised that apartments are lingering on the market, however, given that asking rents have hardly changed year over year, it’s clear that there are more behind the scenes negotiations rather than overtly advertised deals. That, and of course, people want to save more money and spend less on housing and retail–and just about anything else–and are willing to settle for that smaller apartment or less expensive pair of shoes in the name of saving. I see this savings trend as a positive for long-term growth, and believe that while it’s the landlords who suffer now (to the renter’s benefit), they will see plenty of upside in rents within upcoming years once we’ve all stockpiled enough of our money. Until then, happy renting!