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.

Important News

Starting early next month banks will begin handling deposits differently. Please see the details in the Rental Market section of this newsletter.

National News

Oil prices and jobs statistics pushed the stock market lower in the early part of August. The major indexes hit their lows for 2004 after the Labor Department issued a July report that stated the U.S. economy added 32,000 nonfarm payroll jobs in August, as compared to 235,000 jobs that economics had predicted. (The Denver Post, August 8, 2004). Despite that fact, consumer spending in the U.S. continues to be strong, with car buying leading the way, propped up by higher gasoline prices. (The Denver Post, August 8, 2004).

On August 10, the Federal Reserve Board raised a key short-term interest rate by a quarter of a percentage point, citing softness in the economy and the need to keep inflation under control. In return, stocks rose sharply, as Wall Street was reassured that economic growth would continue. (The Denver Post, August 11, 2004). Stocks were back and forth for the remainder of the month, pushed around by oil prices and earnings reports, some good and some bad.

Regional News

While the national rate of inflation rose, the Denver-Boulder-Greeley Consumer Price index declined 0.7 percent in the first half of 2004. Business owners and government planners are confused about the drop. (The Denver Post, August 19, 2004).

The Colorado unemployment rate rose to 5.1 percent in July from 4.9 percent the previous month, following the national trend of minimal job growth. There are still more people on payrolls than there were a year earlier. (The Rocky Mountain News, August 21, 2004). A local economist says that hiring in metro Denver in 2004 will fall well short of expectations. (The Denver Post, August 26, 2004). Good economic news did follow that announcement, with a survey showing that 2,100 more metro job openings than the previous spring. Government and health care jobs led the vacancy list. (The Denver Post, August 27, 2004).

Regional Stock Winners for August

Top gaining stocks for the end of August were as follows:

HEI Inc. Flextronics International Raindance Communications SpectraLink Corp. Applied Films

Regional Stock Losers for August

Top losing stocks for the end of August were:

ConAgra Inc. Par Technology Group Lockheed Martin Corp. Banc One Corp. Novartis Group Magna International

(Boulder County Business Report, Sep. 3-16, 2004)

Banks to handle deposits faster

Starting in early October 2004 banks will be handling deposits quicker. According to the new rules, a check will clear the bank on the day of deposit. This will eliminate the float on checks. This will probably mean we will see an increased number of bounced checks until everyone gets used to the new system. We will be sending out letters to ALL our tenants letting them know about the change. It will be up to them to ensure their checks will clear. There is no clear answer s to whether we will find out about bounced checks in a more timely manner.

Market continues to be soft

According to the Colorado Apartement Association (CAA) and their local chapter, the Boulder County Rental Housing Association, the metro rental market is still extremely soft. You can see buy the graph the number of rentals dropped sharply since Labor Day. However, we still have a very large number of rentals on the market. One indication of this is the 3-story sign on CU's new apartments that offers 2 months free rent. Tenants are very aware of the market and are forcing rents down drastically as the peak season comes to a close. Rental agents and owners need to be able to negotiate at the showings to avoid letting their prospect go down the road to the next rental. Some segments of the market are particularly hard hit--Longmont is one of these.

How soon will this turn around? It is still anyone's guess. Early in the summer we thought the market was showing signs of improvement. The numbers of advertised rentals was down from last year. As the peak season progressed we saw the number of available rentals remain higher than expected. Everyone seems to be waiting for the results of the November election before they make predictions.

New illumination ordinance

The City of Boulder has adopted new rules for lighting on all residential and commercial properties. Although some existing fixtures will be "grandfathered" any new fixtures must fall under the new guidelines. Each owner/landlord should check the ordinance at Boulder immuniation ordinance for details.

Noise ordinance changes

The City also recently adopted new noise ordinances. These are already in effect. Each owner/landlord should make sure their tenants understand the revisions. The City is also moving enforcement of the noise ordiances from Environment Enforcement to the Police department. They will now issue tickets to everyone at the site instead of trying to find one individual as was done in the past.

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.