Harvard Real Estate to Raise Rent for Campus Apartments

Harvard Real Estate (HRE) yesterday announced substantial rent increases beginning July 1, 1980 which will affect graduate students, employees, and other University affiliates living in more than 1500 on campus" housing units.

"Harvard simply cannot escape the economic pressures confronting anyone who is operating residential property," Sally H. Zeckhauser, president of HRE, said yesterday. Rising energy costs are the single biggest factor in the hike, Zeckhauser said.

A Dozen

Robert A. Silverman, HRE's vice president for marketing and tenant relations, said yesterday rent increases for residents who plan to live in the units they currently occupy will be 12 per cent or less, except in cases where rents are below 85-90 per cent of "fair market value."

HRE determines "fair market value" by monitoring rent rates in the surrounding area, Silverman added.

Silverman said HRE will raise rents for new tenants and present residents moving to new apartments between 15 and 35 per cent as those units are adjusted to full market rates. Silverman said apartment turnover rates vary from 25 to 50 per cent, depending on the building.

Zeckhauser said that even with the rate increases, the affected properties will run a $400,000 deficit next year, in addition to HRE's existing $1 million debt. Rents on residential units are not subsidized by HRE's profits on commercial properties, Zeckhauser added.

The properties which will be affected by the new rent increases include Soldiers Field Park, Peabody Terrace, Holden Green, Beckwith Circle, Botanic Gardens, 29 Garden Street, Haskins Hall, 65 Mt. Auburn Street, shaler Lane, Terry Terrace, and 34-36 Walker Street.