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

Check out our website at www.persmgt.com. This is the tool we use to market the properties we have for rent and describe the services we offer. We continue to improve it to better serve our clients.

National News

For the month, the major stock indexes maintained, propped up by positive jobs reports, after bouncing around over oil prices, inflation concerns and interest rate hike fears. (The Denver Post, June 11, June 15, 2004). The Comsumer Price Index rose 0.6% in May, the largest monthly jump since January 2001. Fortunately, the core inflation rate rorse only .2%, a much more modest increase. (The Denver Post, June 16, 2004). Economists reported increased manufacturing activity as well as postive news on housing construction, indicating a continued strong recovery. (The Denver Post, June 17, 2004).

The combination of high oil costs and rising interest rates caused economic experts to worry about the possibility of the country entering a recession. (The Denver Post, June 1, 2004). By the end of the month, though, falling gas prices pushed up consumer confidence. (The Denver Post, June 30, 2004). Further, job growth continues around the country. U.S. employers hired nearly a quarter-million new workers in May, totalling 1.2 million for the year so far. (The Rocky Mountain News, June 5, 2004).

Regional News

Temporary work appears to be picking up in Colorado, often a harbinger of more permanent jobs to come. (The Rocky Mountain News, June 19, 2004). On the negative side, according to the U.S. Census Bureau, average earnings for new hires at the end of 2002, are comparable with those of 1996. Thus, the new employees hired during the economic downturn are commanding much lower wages than those hired during the economic boom of the late 1990's and early 2000's. (The Rocky Mountain News, June 5, 2004).

Home sales in the Denver Metro area were down for June, with the number on the market at an all-time high. (The Denver Post, June 22, 2004). Bankruptcies in Colorado also increased 12% in the first half of this year, as compared to the same period last year. Through June 15, residents and companies filed 12,927 cases, up from the record of 11,535 a year ago. (The Denver Post, June 22, 2004).

According to the Daily Camera, the registered foreclosures in Boulder and Broomfield Counites are still increasing. These were up about 17% from the january to June period in 2003. According to the paper, county officicals do not expect the 2004 foreclosures to hit the same high as 2003 since the growth rate has slowed this year. (Daily Camera, July 9, 2004)

The peak season is upon us! You can see by the chart that the advertised rentals took a big jump after the July 4th weekend. Up to now the number of these advertisements was down about 33% from the previous year. With the new additions this week we are actually about the same as last year.

We are seeing improvements in the number of qualified people looking for a place to rent. We are still needing a high number of showings before getting an application. This is often due to the number of available rentals these tenants have on their 'view' list. We find that if we don't get an application at the showing that chances are much lower that we will get a return call. This often requires a number of follow-up calls to see if we can bring them back for another look.

Rent rates continue to be very geographically controlled. Certain areas are always in demand (i.e., west of Broadway in Boulder) and can command higher rents. However, we are seeing some managers and owners getting a little too agressive in raising rents. Many of our calls are from people that have had bad experiences with other people or companies. It is still a renter's market. We are working very hard to keep the tenants we have in the property.

Pick up the Trash and Keep the Weeds Down

The City of Boulder continues to enforce trash and weed regulations. Reminder, tickets will be issued for trash in the yards and weeds over 12 inches high. Weed violations do not require a warning. The city will issue a ticket on a first violation. (Dwellings, July, 2004)

Ruling on Pre-Paid Rent

The Colorado Supreme Court has ruled that tenants paying rent in advance are not entitled to the interest paid on security deposits. Many managers and landlords are looking to see how this will really affect their businesses and rentals. (Dwellings, July, 2004)

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.