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.

Banks to handle deposits faster

Starting on October 28, 2004 banks institute what is being called 'Check 21' and will be handling deposits quicker. According to the new rules, a check will clear the bank on the day of deposit. While this will eliminate the float on checks it will probably mean we will see an increased number of bounced checks until everyone gets used to the new system. There is no clear answer as to whether we will find out about bounced checks in a more timely manner.

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.

National Economic News

The markets see-sawed around during the month, in response to oil price fluctuations and the build up to the national election.

Regional Economic News

A housing market study showed that home prices in the metro Denver area fell in October for the second consecutive month, while the number of houses under contract grew. The median price for a single family home fell to $235, 900 from $240,000 in August and September. (The Denver Post, Oct. 27, 2004).

The Denver Metro Chamber of Commerce/Rocky Mountain News leading index of the local economy rose to its highest level since 2001. The index measures how the metro area economy will perform over the next six to nine months. (Rocky Mountain News, Oct. 9, 2004).

Natural gas price increases are expected to translate into heating bills up 26 percent from a year ago. (The Rocky Mountain News, Oct. 26, 2004).

Colorado's unemployment is down to 4.9 percent as opposed to 6 percent a year ago. Boulder County has a rate of 4.4 percent, while Broomfield County has a rate of 4.8 percent. (The Rocky Mountain News, Oct. 23, 2004).

A study by Ernst and Young shows that venture capital availability is rebounding more slowly in Colorado than the rest of the nation. In the first three quarters of this year Colorado companies raised $272 Million of venture funding, a 9 percent increase over the same period last year. (The Denver Post, Oct. 25, 2004).

Regional Stock Gainers

Evolving Systems Up 1.45 Intrado Up 1.7 McData Corp. Up .81 Storage Tek Up 2.92 Dynamic Mat'ls Up .34

The commercial market remains very tough. Today's Denver Post (11/10/2004) gives the following statistics..

Sales of office properties continue to improve. They showed almost $360 million in sales this year. Many analysts continue to predict a slow growth. So, there are positive signs amidst the still slow market.

Denver metro apartment vacancies have been falling since January, and were at 8.5 percent in October, as opposed to 11.1 percent a year earlier. (The Denver Post, Oct. 29, 2004). Indications are that landlords are giving fewer concessions to attract tenants. However, a number of apartment owners are adding services such as cleaning services to attract tenants. Some experts say this is due changes in lifestyles as well as new developments slowing down. Nationwide the article stated that there is a trend toward multiunit housing as people making over $50K are shying away from taking care of yards.

City outlaws BBQs

Recently the City of Boulder Fire Department attempted to enact an ordinance to control open flames (read candles) in restaurants. To do this they adopted the International Fire Code. What they did not realize was that this code outlawed ALL barbeque grills. When they realized their mistake they went to the City Council and attempted to repeal the ordinance. However, according to my source, the City attorneys decided that only those people in single family homes or townhomes on the ground floor were responsible enough to be allowed a BBQ. When I asked if this was a problem I was told it was. When I asked if this was a problem locally my source admitted it was not.

Thus the City has outlawed BBQs for virtually all residents of muli-family housing. The popular opinion is split between being able to control tenants a bit more and personal freedoms. We are sending out notices that tenants will have to comply with the City ordinance. Needless to say we are getting some push-back on this issue. Our insurance agent says that if we do not show attempts to enforce this ordinance that they might cancel our insurance or deny claims. Welcome to the People's Republic of Boulder!

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.