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.

National Economic News

The Labor Department reported that national unemployment fell in March, and job creation was weaker than expected. (The Rocky Mountain News, April 2, 2005).

Oil prices surged to new record highs in April, fueling continuing high gasoline prices. (The Rocky Mountain News, April 2, 2005).

In April, national rates on 30 year mortgages chimbed to their highest point in eight months. (The Denver Post, April 3, 2005).

Consumer confidence held steady in April, as measured by the AP-Ipsos consumer confidence index. (The Denver Post, April 10, 2005).

The Commerce Department reported that the federal trade deficit grew to a record $61 Billion in February, leading analysts to lower growth forecasts. (The Denver Post, April 13, 2005).

The Commerce Department reported that U.S. retail sales rose less than forecasted for March, due to the continuing high gasoline prices. (The Denver Post, April 14, 2005).

The stock market indexes fell to their lowest levels for this year on April 14, driven by worries about economic growth. (The Denver Post, April 15, 2005).

Following that up, on April 15 Wall Street suffered its worst single day in nearly two years, with the Dow Jones industrial average falling 191 points. (The Rocky Mountain News, April 16, 2005).

Consumer confidence began to fall later in April to its lowest level since September 2003, as consumers spent a greater part of their income on high gasoline prices. (The Rocky Mountain News, April 15, 2005).

Stocks recovered slightly later in the month, based upon announcements of lower than inspected inflation. (The Denver Post, April 20, 2005).

The government announced that consumer prices edged sharply up later in April. (The Denver Post, April 21, 2005).

Stocks ended an erratic month down, driven by concerns over a slowing economy and rising inflation. (The Denver Post, May 1, 2005).

Regional Economic News

In a study conducted by the FDIC, Colorado was ranked in the top 10 of states for job growth in the last three months of 2004. This was a marked improvement over 2003, when the state was in 45th place. (The Denver Post, April 7, 2005).

Developers and building owners in the Boulder Valley are continuing to offer incentives to entice tenants to their properties--including reduced rent, building improvements and other discounts. More creative deals might include options to lease additional space if needed. (The Boulder County Business Report, April 15-28, 2005).

Indicators for the local rental market remain mixed. The chart shows we are doing much better than in 2003 and 2004. It is still very much a renters market. We are getting an increasing number of calls for our available rentals. We are also seeing increased rents in some areas. This bodes well for the peak season.

In statewide news our governor is still in the landlord's corner. He recently vetoed a bill that would have reduced the time to refund security deposits. So far, we still have up to 60 days.

Boulder is experiencing some interesting changes. The students normally rent early--late February or early March. Historically, the big push was to rent before Spring Break. This year we are seeing a high number of students starting their search this month. Many say they are just staring to look and many have friends that have not started yet. With a high number of student rentals still available this could be good news for student rental landlords and owners.

CU is floating the idea of requiring students to live in campus housing for their first two years instead of just their first year. I have heard speculation that they are trying to boost revenues and reduce their 40% vacancy rate in their new apartments. With all the controversies, increases in tuition their enrollment continues to drop.

City Rental Licenses

If you get a notice you need to renew your rental license please remember you only need the gas fueled appliance (i.e., furnace, hot water heater, etc.) inspection. If you do not renew by the expiration you will need the safety inspection as well.

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.