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accommodation students in barcelona 1 term

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my son and 3 other students (21 yr olds) will be in barcelona studying at esade business school from january til may. any suggestions for accommodation would be appreciated! they will not be staying at the school, as it is out of town, and they want to be in the city. a reasonably priced option, in a good (safe yet fun) part of the city near transportation would be ideal. they would like to be all together, but could do 1 X4 bdm or 2X 2bdm units. i imagine a long term rental of some sort makes the most sense? they have been advised to book into a cheap hotel or a hostel for a while to get their bearings and search while they are there- does anyone know how best to do this, or an agency to recommend? the hotel/hostel they should arrive at? thanks for your help! oh- budget? does $700 per month per person seem reasonable or do i have to go higher?

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