This newsletter is a compilation of news and information regarding the rental markets in Boulder and Broomfield counties and the economic status of and outlook for the area. It is issued during the first week of the month. The sources for the data include local and regional news media, association publications and seminars, and information gathered from contacts in the property management and real estate fields. We make every effort to cite all of our sources. Should we miss one please let us know so that we can correct the omission.

Company News

Personalized Management Services has a new website, with lots of new functionality. The address remains the same - please check it out at www.persmgt.com

The U.S. economy continued to improve in December, with the Dow Jones average rising above 10,000 and NASDAQ topping 2,000; neither had topped that milestone since early 2002. (The Denver Post, Dec. 10, 2003).

The recent rise in mortgage rates has slowed refinancing and now the mortgage companies are downsizing in order to compensate. (The Denver Post, Dec. 10, 2003).

Retail sales rose 5.5% in 2003, the best growth since 2000. (The Denver Post, Dec. 31, 2003).

Regionally, the University of Colorado forecasted that the job drought should end next year, as the national recover continues to mount. CU predicts a 1.5% gain in jobs in 2004, in conjunction with a moderate recovery in the state. (The Denver Post, Dec. 16, 2003). The jobs will be well-received, as Colorado lost jobs in November, as opposed to the national trend of job growth. (The Rocky Mountain News, Dec. 20, 2003).

In other regional news, Colorado stocks climbed to a three year high, led by Forest Oil, UGC Europe Inc., and St. Mary Land & Exploration Co. (The Rocky Mountain News, Dec. 20, 2003).

For the second consecutive quarter, the Boulder County Leading Economic Indicator increased, leading expections for further economic improvement in the first quarter of 2004. (Boulder County Business Report, Dec. 26-Jan. 8, 2004).

Commercial office space along the U.S. 36 Corridor is now at vacancy rates of 25-30%, while that in Boulder is 25% vacant. As a consequence, lease rates have continued to decline to about $9.50 per square foot and some analysts say they haven't seen rates this low since 1992. (Boulder County Business Report, Dec. 12-25, 2003).

The local rental market is still very challenging. That is a nice way of saying there are still a lot of available rentals on the market.

We are seeing a sharp increase in the number of calls on our available properties now that the holidays are behind us. Price is still the overriding consideration for these people but we have candidates at the low end, the high end and thos in between. This is good news but we are still tracking our asking prices to make sure we are in synch with the market.

The chart above shows that advertised rentals are up about 81% over this time last year. Actual estimates for vacancy rates are not currently available for single family homes in the area. However, Dr. Gondon Von Stroh is starting to collect that information for his studies/tracking of rentals and vacancies in the area. Hopefully this data will begin to filter out to us soon.

City of Boulder Interest on Security Desposits

The Boulder City Council will conduct the next review of the proposed ordinance on January 20. The language supported by the BCAA for the ordinance is as follows:

"Interest rates paid upon the refund of security deposits shall be determined by the city manager by averaging the interest rates being paid on one-year certificates of deposit by three banks doing business within the city that, in the view of the manager, provide indicia of being significant participants in the local banking industry. This average rate will be calculated as of December 15 of each year, or if that date falls on a weekend or holiday, the first business day thereafter. The manager's determinations of the rate shall be final. The rate shall be published in a newspaper of general circulation or posted on a city internet site that is accessible to members of the general public. The average interest rate so determined shall be rounded to more than two decimal points. It shall be come the rate of interest paid on any security deposit that is refunded during the calendar year starting on January 1 of the year immediately following the date of the manager's decision."

Water rates may change

The City of Boulder is considering changes in how they bill for water usage. There are several options under consideration including calculations based upon lot size, average indooor water usage per household, and even different rates for summer and winter. There are two public meetings scheduled at ...

• Wednesday, January 14 at 6pm in the City Council chambers, 1777 Broadway
• Monday, January 26 at 7pm at the Water Advisory Board Meeting, Municpal Service Center, 5050 East Pearl

Reminder: City of Boulder Snow Removal Regulations

The City of Boulder regulations require that sidewalks are cleared of snow by noon of the day after a snowfall. Residents are responsible to shovel the sidewalks and can be fined if they don't do so. Violators receive one warning per season, with a summons issued for the next violation. First time violators recieve $100 fines. In the year 2002, 863 snow removal violations tickets were issued.

What is a competitive rent for your property? There is no one answer for everyone. We will be working with each of our clients to determine how their property should be priced in this market. Please contact us if you have specific questions or want more information.

We are actively working to grow the business and to add new properties to our management inventory. If you know someone that would be interested in our services please send them our way. We pay referral fees to anyone referring us business! That wraps things up for this month. Again, if you do not want to receive these messages please call or email us and we will take you off this mailing list.

Please take care!

Ray, Scott, Kathy, Kim and Frank