CT Real Estate Today - August 2022 Edition

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August 2022 Published by: In This Month’s Edition Sample Criteria For Accepting or Rejecting a Rental Applicant Five Screening Tips to Help Minimize a Property Owners Risk When Moving in a New Resident Zillow Reopens the Door to LegaliBuyingTips for First Time Landlords

Publisher’s Message A Message From Bob DeCosmo, President of CTPOA News And Views From The Capitol Some CT Towns Are Saying No to Statewide Rules On Accessory Apartments Realtor Report Zillow Reopens the Doors to iBuying Insurance Insights 9 Ways to Save on Homeowners Insurance in 2022 Property Management Tips & Tricks Five Screening Tips to Help Minimize a Property Owners Risk When Moving in a New Resident Helping Property Owners Since 1994 Table of Contents

CTPOA’s Mission: Educate our members on the Best Practices. Increase profitability. Provide access to Core Services. Advocate for Property Owner Rights. Meet Our Team: Bob CarmineDeCosmoDeCosmoMelissaDeCosmoPaulJenney Chelsea Sayegh PO Box 4795 Waterbury, CT 06704 800-369info@ctpoa.com6153 Published by: CTPOA Financially Speaking Inflation Climbed 8.5% in July as Prices Cool but Remain Near Record High Get Energy Efficient Five Energy-Savings Tips for the Summer The Legal Corner Legal Tips for First Time Landlords Vendor Spotlight The Miranda Team Is Here For You and All Your Home Inspection Needs! Tenant Screening Tips & Tricks Sample Criteria For Accepting or Rejecting a Rental Applicant

04 / Publisher ’ s Message

Time to mark your calendars. Continuing with CTPOA’s educational webinar series, we are pleased to announce that we have planned our next two events. On Thursday, September 8th at 1:00PM, we will be hosting a webinar with Petscreening.com that will cover Pets and Rental Housing. The company investigates, evaluates and then rates pets with a score, much like a credit report for owners. Most importantly, they also investigate requests for reasonable accommodations for emotional support animals. Their statistics suggest about 60% of the requests for an emotional support animal do not meet the standard under the law. Their service is invaluable as many renters have fake certificates showing that Fluffy is a support animal when Fluffy is just a family pet. HUD created guidance on this subject in 2020 but left plenty of gray areas where property owners can say the wrong thing and find themselves facing a discrimination complaint. Property owners can’t charge renters extra for support animals but may do so with non support animals in most cases. By Bob DeCosmo For Property Owner Rights

Advocate

Also in October, we’re planning to host “Meet & Greet” events for candidates running for the Legislature. We are hoping to do these events in conjunction with Realtor Associations. There is no more important task facing rental property owners than establishing a dialogue with their local elected officials. Property Owners fail miserably in communicating with their local legislators. Our elected officials need to better understand what is happening in real-time at the street level when it comes to managing and operating apartment units.

Legislators get an earful from advocates, lobbyists and lawyers representing tenants but don’t hear from the actual owners of rental property; this needs to change. Housing touches all of us and we need to make sure that political agendas don’t further damage the rental housing market. It’s at the point now where it’s nearly impossible to make the cash flow work and many cities are revaluating property values which means tax increases are coming while rents are already at record highs.

05 / Publisher ’ s Message

I do hope to see you soon at either the webinars or an in person CTPOA event.

Then on October 5th at 1:00PM, we will be hosting a webinar covering Fair Housing Laws with the CT Fair Housing Center doing the presentation. Fair Housing laws are extensive, and some are even complex. Whether it’s State Law vs. Federal Law exemptions, Rental Occupancy Limits, Protected Classes, Reasonable Accommodations, American’s With Disabilities, these are all topics that need to be further explained to rental property owners.

Denying someone housing that runs afoul of the Fair Housing Act can become an expensive lesson when complaints are filed at the Commission on Human Rights and Opportunities.

06 / News & Views From The Capitol

Desegregate Connecticut estimates that about half of the state’s towns and cities have at least discussed opting out of the new state zoning standards, but its executive director Pete Harrison said that decision doesn’t mean towns are rejecting ADUs wholesale. “In terms of purely opting out ... I don’t think anyone’s done that,” Harrison said. Before the state law passed, 92 percent of Connecticut towns permitted accessory dwellings in some capacity, with some prominent exceptions. Stamford, Derby, Waterbury, Meriden and East Haven prohibited ADUs entirely, according to data from the Desegregate CT Zoning Atlas. Other municipalities like Bridgeport and Some CT Towns Are Saying No To Statewide Rules On Accessory Apartments

By: Verónica Del Valle, with stamfordadvocate.com

A backyard cottage in Connecticut represents more than a backyard cottage. For more than a year, the future of so called accessory dwelling units smaller, secondary homes on single family properties has ignited local political debate after state legislators last year enacted a new law meant to encourage more ADUhousing.supporters have called the homes “low hanging fruit” in terms of the affordable housing crisis. They say that creating a bigger housing stock reduces the price of housing overall, especially when it comes to smaller homes. One study from the nonprofit Regional Planning Association posits that, combined with other zoning reforms, accessory apartments could help create up to 40,000 housing units over the next 20 Theyears.2021 law makes ADUs legal anywhere singlefamily homes are also permitted, with certain environmental exceptions. The statute also established that they can be attached or detached from the main house on the property and do not require special approvals from town officials. But that law has an escape hatch, a provision that allows towns to “opt out” of the new statute, and officials are taking advantage of that for many different reasons. Towns have until 2023 to decide the ultimate fate of accessory apartments within their borders. But dozens have already taken a stand on the state statute that seeks to allow ADUs, regardless of whether a town wants accessory dwelling units or Thenot. statewide housing advocacy organization

Opting out in favor of more local rules is not just a Fairfield County move. The Milford Planning and Zoning Board last week voted in favor of opting out of the state ADU provision, but its mayor backed updating existing city rules on accessory apartments. Similarly, Meriden city officials have expressed interest in crafting more specific rules as well, and in mid August, will hold a public hearing to that purpose.

“My understanding is that some prominent land use attorneys in the state have promoted this idea of ‘opting out’ whether the town has permissive ADU regulations or not,” senior planner Torrance Downes of the Lower CT River Valley Council of Governments said in an email. Of the towns in his jurisdiction, he said he knows of only two that have completely opted out of state standards: Old Saybrook and Old Lyme. Though he called Old Lyme “more cautious” about ADUs, he said both towns looked to “preserve some flexibility as they move forward” with allowing accessory apartments.

The opt out has emerged as a particularly viable path forward in Fairfield County, where many towns have defected from state standards to varying degrees. “I want to be able to maintain local control,” Darien Planning and Zoning Commission chair Stephen Olvany said during a July 19 meeting. “We’ve done a great job doing it in all of our other stuff. If we opt out, which is what my recommendation is, we can maintain local control and draft our own statute.”

“It seems to be the case that most towns have liberalized their ADU requirements, (putting them) either in line with the state law or beyond that,” he said. “In some cases, they’ve done a kind of more targeted, smaller regulations.” Either way, Harrison said he thinks ADUs are here to stay, whether the rules come from the state house or town hall.

“The goal is to have (them) become a mainstream policy tool for the housing crisis: that’s been overwhelmingly successful,” he said.

Darien has not yet opted out of the state rules, though local officials said they plan to. Stamford announced a similar move. Its Zoning Board in July announced that its land use staff would draft accessory apartment rules, which the board could implement before opting out of state standards.

From The Capitol Danbury banned the structures in large swaths of the town. Every town in the state imposes some sort of limit on accessory apartments. Some places limit property sizes that ADUs can go on. Others require permits from municipal zoning officials, put limits on who can live in the home or limit who can occupy the structures.

Data sent from the Western Connecticut Council of Governments, the regional planning body that serves the area, to Stamford city officials, show that more than half of its member towns and cities opted out of the state statute. Of the 18 member municipalities, 11 had opted out as of late July, according to the document. Two towns Ridgefield and Newtown revised their regulations to reflect the new standards.

07 / News & Views

During public hearing sessions across Connecticut, city officials have cited future control over accessory apartment rules as a compelling reason for opting out. While changing a state law is a long process controlled by the interests of many stakeholders, changing a municipal ordinance is less cumbersome and more directly reflects the needs of a town, they argue.

Opting out of the state rules has emerged as a popular option among municipalities, especially those looking to preserve local power over land use issues. Yet, opting out of the state standards for some towns is not a complete rejection.

Regardless of the push toward local control of accessory apartments, Harrison said that the homes have become more mainstream in Connecticut in just a few years.

08 / Realtor Report

Zillow is getting into bed with recent archrival Opendoor or is it the other way around? Either way, both platforms could use somebody to lean on. After disclosing it would exit its own automated home buying and selling business last year, Zillow Group is now essentially getting back into iBuying virtually risk free, leveraging Opendoor’s technology in order to do so. The two online real estate giants both said in conjunction with their respective earnings Thursday that they have entered into a multiyear exclusive partnership such that home sellers on Zillow’s platform will be able to request an offer on their home directly from ItOpendoor.couldbea smart move for everyone involved. Opendoor wants to be a nationwide, all markets company. To get there, it certainly can benefit from Zillow’s market leading 234 million unique users. Meanwhile, after sunsetting its own iBuying business, Zillow has pivoted to a “super app” strategy and is now looking to own both sides of home transactions. It has historically been a place where home buyers come to start their journey, but Zillow can leverage pure play iBuyer Opendoor’s home sellers to get a bigger piece of the other side. Much like how Uber Technologies has been adding taxis and travel bookings to its platform, generating a referral fee, the hope is that by baiting new customers with other platforms’ solutions, Zillow can ultimately serve them as well. But it is still a somewhat painful validation to offer Opendoor, a company that has thus far succeeded in a risky business where Zillow failed spectacularly. Meanwhile, both companies issued underwhelming guidance for the third quarter Thursday afternoon. And at this point, the Zillow Reopens the Doors to iBuying By: Laura Forman, with www.wsj.com

unknown is really just how quickly and how sharply the housing market will fall. In its first -quarter shareholder letter, Opendoor had tried to reassure investors by saying that, while the market may moderate “beyond what is normal from seasonal trends,” realestate prices have tended to move slowly in market declines. Just three months later, the company is saying the pace of deceleration in home-price appreciation is already steeper than expected. Managing the current volatility, Opendoor said, will require “a highly dynamic and rigorous approach to managing risk and overall inventory health.”

Zillow offered a starker outlook Thursday, noting that buyer sentiment is now at a 20 year low and that it expects total industry transaction dollar volume in the second half of the year to “meaningfully contract” year over year. That is bad news for both businesses since, as Zillow candidly pointed out, they are “ultimately driven by transactions.” How bad will things get? Opendoor said, in part because of how broadly it is reducing the prices of its existing inventory in line with the market, it now expects third quarter revenue to come in 43% below Wall Street’s forecast. The company also said it expects to swing to a loss on the basis of adjusted earnings before interest, tax, depreciation and amortization. Analysts had been expecting another quarter of profits on that basis. Zillow, meanwhile, called for Premier Agent revenue, its agent ads business which is now its largest source of revenue after ditching iBuying, to come in 22% below Wall Street’s expectations during the quarter at the midpoint with adjusted Ebitda 53% below analysts’ forecast at the midpoint. YipitData hints at just how precipitously market conditions already have begun to deteriorate. The firm estimates 68% of Opendoor’s listings saw at least one price cut in July up from 17% in February. Opendoor, meanwhile, said it ended the second quarter with over 17,000 homes on its balance sheet, up 143% from the same period last year and 27% even from last quarter. It might need to reduce inventory quickly, but that could be tricky: Despite record-low home inventory levels in the U.S. last year, consumers transacted at a rate 15% higher than they had in the previous 11 years. Data from the U.S. Census Bureau suggests Americans move just once every six to seven years, on average. All that implies a natural slowdown in transaction volumes is coming, even without elevated mortgage rates and a possible recession. With all that as a backdrop, it is no surprise online real-estate competitors are cozying up to take on whatever the market is about to throw their way.

09 / Realtor Report

1. Shop Around One of the best ways to lower homeowners insurance costs is to do your homework before buying a policy. As you explore homeowners insurance providers, be sure to take these steps:

Homeowners insurance rates can vary drastically. While some factors, such as your location and your home’s size, may be out of your control, there are a handful of ways you can reduce your bill. Read on to learn how to save money on homeowners insurance in a few simple steps.

10 / Insurance Insights

• Compare coverage: Don’t just focus on cost when you compare companies. It’s also essential to review the types of coverage, endorsements and coverage limits each company offers.

• Check out third-party ratings: You can use Better Business Bureau (BBB) ratings and J.D. Power scores to assess user experience. Look to AM Best and other credit rating agencies to gauge a company’s financial strength and ability to pay claims.

• Read reviews: To get firsthand insight into a company’s customer experience from actual policyholders, you should read reviews from sites like Trustpilot, Yelp and Google reviews.

• Get quotes: Home insurance rates can vary by hundreds of dollars depending on your coverage needs and which company you choose. We at the Home Media reviews team recommend comparing insurance quotes from multiple companies to ensure you get the lowest rates possible. 2. Bundle Home and Auto Insurance One of the most significant ways to save on home insurance and lower your car insurance rates is to bundle these policies with 9 Ways to Save On Homeowners Insurance in 2022 By: Home Media, with www.marketwatch.com

4. Increase Your Deductible Your deductible is the dollar amount you are responsible for paying before your coverage kicks in when you file a claim. By choosing a higher deductible, you can lower your monthly or annual homeowners insurance bill. Just keep in mind that you’ll have to pay more money out of pocket in the event of a claim. But before you increase your home insurance deductible, it’s critical to budget for it. Make sure you have enough money set aside in savings to cover an emergency claim.

3. Look for Additional Discounts

the same provider. If a company offers multiple types of insurance (including pet insurance), you may be able to lock in lower rates by buying multiple policies from them. For example, insurance companies offer anywhere between 5% and 25% off premiums when you purchase your home and auto insurance from them.

5. Protect Your Home When you protect your home from fire, theft and natural disasters, you reduce the risk of having to file a claim in the future. Taking these steps to shield your home from costly claims can also earn you lower home insurance rates. For example, you may be able to save money on premiums and protect your home by using fire resistant roofing materials or adding storm shutters. You could also unlock discounts for adding home security features such as deadbolt locks, security or alarm systems, sprinkler systems, smoke detectors and fire alarms. Get quotes on these products and talk to an insurance agent to see how these features could save you money.

11 / Insurance Insights

Most homeowners insurance companies offer more than just multi policy discounts. If you do your homework, you won’t leave any discounts on the table. You could save money by doing something as simple as switching to paperless billing or making automated payments with some providers. In some cases, you can get more obscure home insurance discounts, such as a nonsmoker discount or a reduced rate for being a part of an association or membership organization.

6. Keep Up Your Credit Score

As with credit cards and other financial products, your credit history can affect your home insurance costs. Most insurance companies factor your credit score into your premiums the higher your credit score, the better rates you may be eligible for. To improve and maintain a good credit score (670 or higher), focus on making payments on time, keeping your credit use as low as possible and checking your score regularly.

8. Avoid Small Claims

12 / Insurance Insights

It’s a good idea to talk to your home insurance agent about changes to your policy and coverage needs.

7. Review Your Policy and Take Inventory

Regularly Your home insurance needs and the value of your belongings can change with time. As such, it’s crucial to review your homeowners insurance policy annually to ensure your amount of coverage and deductibles are still a good fit. You should also take stock of your possessions and reevaluate any endorsements you’ve added to your policy, such as a floater offering additional protection for a piece of fine jewelry or a computer that you perhaps no longer own. Likewise, you should factor in home renovations and upgrades, as they can change the value of your home and your coverage needs.

9. Ditch Risky Items You Don’t Use It may be worth getting rid of the trampoline your kids have outgrown or the swimming pool with little more than leaves floating in it. Liability insurance is one of the key coverages of your home insurance policy, and it protects you from legal and medical bills if anyone is hurt on your property. Structures that increase the risk of a claim, such as pools, trampolines and playground equipment, can drive up insurance Contactcosts. your insurance company to see if adding protective features such as a fence or removing these structures could lower your rates.

While homeowners insurance is designed to protect you and your home, excessive home insurance claims can lead to increased rates. Even though a minor instance might be covered, filing a claim might not always be the wisest move for your wallet. Insurers often reward you with discounts for being claims free for a specific number of years. When deciding whether or not to file a homeowners insurance claim, weigh the cost of paying out of pocket against the impact the claim could have on your home insurance premiums.

By: Adrianne Angel, Pro Property Management, Owner / Broker

14 / Property Management Tools & Tips

As tenants are provided more free resources, it is becoming even more important for landlords to do a thorough screening before moving in new residents into their investment properties. Not doing a thorough screening could cost a landlord on average between three to five thousand dollars in damages. These damages are only going to get higher due to the delays in housing court cases caused by the extended Eviction Memorandum and providing free legal representation to tenants in housing court, a newly enacted law in Connecticut.

Below are some recommended screening criteria to consider when evaluating a potential applicant that will reduce the landlord’s risk: Credit – Reviewing an applicant’s credit score is usually the most common screening criteria used by landlords. The credit score is definitely an important factor to consider, but many tenants do not have a good score due to factors that do not truly reflect their current financial situation such as no credit history, divorce, past bankruptcy, foreclosure or medical bills.

Five Screening Tips To Help Minimize A Property Owners Risk When Moving In A New Resident

Reviewing the current payment behaviors and debt obligations in the report will give you a better understanding of the tenant’s financial abilities than just the score itself.

Income There are several options available to confirm an applicant’s income. It is important to only take into consideration income that can be verified with an award letter, paystubs, bank statements, or taxes. If reviewing paystubs, request at least 3 pay periods to confirm average pay as it may vary per pay period. Qualified applicants should make at least 3 times the rent and all sources of income needs to be considered including all forms of subsidy assistance.

Rental History – Evaluating the rental history of an applicant can be tricky. Some good applicants do not have rental history and some landlords have an incentive to lie in order to get a bad tenant out of their home. Always request last two past landlords contact information and double check landlord’s full name on the assessor’s database to ensure you are talking to the right person. Some landlords require an inspection of where they are currently living to get a better understanding of how they will take care of their home.

Criminal – Some of the free reports only include local records so make sure you are reviewing national criminal history to get the best assessment. The type of felony and how long ago the conviction happened should both be considered. Not all felony’s will put your property or other residences at risk. In summary, no screening criteria or report can reduce an applicant’s risk 100%. Sometimes you can have a great candidate on paper and you still end up having to evict them. Having a fair and consistent screening criteria is key to ensuring you are treating everyone equally and reduces your risk at the same time. To ensure you are complying with all fair housing laws we recommend you hire a licensed Property Manager or Real Estate Agent to help you with all your leasing needs.

15 / Property Management Tools & Tips

Eviction Not all CT eviction records are kept online so we use Tenant Tracks reports because they include all offline eviction records. A recent eviction should be evaluated differently than one that happen seven or more years ago. Good recent rental history may help offset the risk of an applicant who has a past eviction due to circumstances that no longer exist.

The Labor Department said Wednesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 8.5% in July from a year ago, below the 9.1% year over year surge recorded in June. Prices were unchanged in the one month period from ThoseJune.figures were both lower than the 8.7% headline figure and 0.2% monthly gain forecast by Refinitiv economists, likely a welcoming sign for the Federal Reserve as it seeks to cool price gains and tame consumer demand. Stock futures rose on the better than expected report, with the Dow Jones Industrial Average climbing 0.9% and S&P 500 futures gaining 1.2%. So-called core prices, which strip out the more volatile measurements of food and energy, climbed 5.9% from the previous year, below the 6.1% forecast from economists but matching the reading from July. Core prices also rose less than expected, rising 0.3% on a monthly basis a smaller increase than in April, May and June, an encouraging sign that inflation is starting to loosen its stranglehold on the economy. Still, experts cautioned that while the July slowdown is a step in the right direction, inflation remains painfully high and could be slow to return to the Fed's preferred target of "We're2%. not out of the woods by a long shot," said Peter Earle, a research fellow at the non profit think tank the American Institute for Economic Research. "There's a long way to go, and a lot can happen, before we get back down to that 1.5% to 2.5% annual inflation

16 / Financially Speaking

Inflation Climbed 8.5% in July As Prices Cool But Remain Near Record High By: Megan Henney, with www.foxbusiness.com

Scorching-hot inflation has created severe financial pressures for most U.S. households, which are forced to pay more everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations. Although American workers have seen strong wage gains in recent months, inflation has largely eroded those. Real average hourly earnings decreased 0.5% in July from the previous month when accounting for higher consumer prices, according to the Labor Department. On an annual basis, real earnings actually dropped 3% in July.

"While the boost to overall economic prospects is welcome, easing inflation will ring hollow with many down-market consumers whose wages are falling in real terms despite the decline in gasoline prices alone adding about $400 million dollars back to household balance sheets," said RSM chief economist Joe Brusuelas. There was some real reprieve for U.S. households last month in the form of lower energy prices, which contributed to the decline in headline inflation. The cost of energy fell 4.6% in July from the previous month, though it remains 32.9% higher than just one year ago, while gasoline prices fell 7.7% in July. They remain up 44.9% from last However,year. other price increases were extensive in July with inflation remaining stubbornly high. The food index climbed 1.1%, putting the 12-month increase at 10.9%, the highest since May 1979. Consumers paid more for items like cereal, chicken, milk and fresh vegetables. Shelter costs, which account for about 40% of the core inflation increase, have climbed 5.7%, the fastest since February 1991. Rent costs jumped 0.7% over the month and 6.3% on an annual basis. Rising rents are a concerning development because higher housing costs most directly and acutely affect household budgets. Another data point that measures how much homeowners would pay in equivalent rent if they had not bought their home, climbed 0.6% in July from the previous Whilemonth.it is fair to state that we may have observed the apex in overall inflation in June 2022, the risk to the economic outlook remains inflation, and the direction of [Fed] policy needs to remain in place," Brusuelas said. "In our estimation, it will be two to three years before inflation is anywhere near the Fed’s 2% inflation target."

17 / Financially Speaking area that Americans are used to."

2. Check your filters monthly during the cooling season If they appear dirty, replace them with clean ones. A dirty filter will slow down air flow and make the system work harder to keep you warm or cool wasting energy.

We may be in the middle of summer, but there’s still plenty of time to start saving energy. Here are five easy ways you can help lower your electric bills this season:

Don't take for granted the things you can do to save energy every day Sometimes it’s the little things that save you big. Turn off lights when they aren’t needed. Unplug chargers when they're done charging. Seek out energy-efficient products like LEDs and appliances. We’ve got rebates for those, Iftoo!you have any questions about energy savings or how to make your home more energy efficient, visit the EmpowerSC section of our website. Five Energy-Savings Tips for the Summer

4. Avoid using ovens and other cooking appliances that add heat to the home

1. Set the thermostat at a higher temperature during daytime hours One of the easiest ways to save money on air conditioning is to set your thermostat to the highest comfortable temperature. Even better, get yourself a smart thermostat and let it do the work. We’ve got rebates for those!

Use a microwave. Microwaves work by tossing molecules around in a very controlled way, heating up food without adding much heat to the kitchen. Toaster ovens work, too. They’re like mini ovens that can be used for baking and cooking.

By: Jeff Straight, with www.santeecooper.com

18 / Get Energy Efficient

3. Ceiling fans create a wind-chill breeze that can make you feel cooler If you're looking to save energy costs and keep your utility bills low during this sweltering summer season, consider using a ceiling fan in addition to AC set at a higher temp. Ceiling fans can make a room feel cooler by about 3 to 5 degrees if you are in the air stream of the fan. Just make sure you’re running it in the right whensummercounterclockwisedirectionintheandturnitoffyouleavetheroom.

For More Information Visit Our Website: landlordcollections.net Give Us A Call: (800)-369-6153

Legal Tips for First Time Landlords

By: Becoming a first time landlord can be a lot of work, but there’s also the promise of a lucrative business (and regular rent checks). When you’re first starting out, beyond the basics of getting the property purchased and ready to rent out, remember that setting yourself up for success also means having the proper legal protections in place and being proactive with legal issues could save you from big legal bills and hassles down the road. Here are some guidelines to help protect yourself when you’re starting out as a new landlord. Put it in writing. It seems simple but putting everything in writing can be the smartest thing you ever do as a

20 / The Legal Corner

Thelandlord.most important item to put in writing is the Lease Agreement between you and the tenant. If you ever have problems with the tenant, the Lease Agreement protects you and gives you legal rights that would be more difficult to prove without documentation. It also makes it clear that both parties have agreed to specific terms that you can both reference later if there is a dispute. Get a security deposit. Collecting a security deposit communicates to the new tenant that you care about the condition in which the tenant keeps your property. It also gives the tenant motivation to keep the property in the same condition in which it was first rented. If the tenant doesn’t keep the property in good condition or damages it, you may be able to keep a portion or all of the deposit to pay for repairs or additional cleaning. Make sure you have the tenant fill out a Renter’s Inspection Worksheet when the tenant first moves in to reduce disputes about the initial condition of the apartment.

Make sure you know and follow the terms of the lease you’ve signed. If you create a document and then flaunt the terms, your tenant could take you to small claims court and you could be found liable. You could also get in trouble with local housing authorities. In addition, if you don’t follow the lease terms (by not maintaining the property, for example), it makes it harder to enforce regulations of the lease that you do want the tenant to follow like paying the rent on time. Understandyourrightsasalandlord.

Familiarize yourself with your state’s laws that protect the tenant’s rights, and any applicable city or county laws that might affect you. Consult the Hud.gov Tenant Rights resources by state to find out more about the laws in your area. This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer. Corner

Although the renter has rights, so does the landlord. For example, you should be able to enter the property when necessary for maintenance with the appropriate amount of notice given to the tenant. You also have the right to evict a tenant if they are not upholding their end of the lease. You can use an Eviction Worksheet in this case, but before you get in this situation, it’s smart to understand the legal process for evicting a tenant in your city and state, since it varies by locality. Understand the Tenant's rights, and your obligations to protect them.

21 / The Legal

It’s your responsibility to vet your potential tenants. Start by having them complete a Rental Application, which will help you collect the information you need to screen your potential tenants. Next, take the time to verify their good credit and their employment, which will help you determine their ability to pay the rent. Keep in mind that it’s much easier to find another potential tenant than it would be to evict a tenant who can’t pay the rent. Of course, you also need to follow any laws that protect tenants against housing discrimination, but the inability to pay the rent generally can be used to disqualify a potential tenant. You may also use a Letter to Request a Credit Reference to verify the prospective tenant's good credit, and/or ask the tenant's employer for a Salary Verification Letter.

Understand key lease terms, like rent, maintenance, utilities, etc.

Knowthetenantfinancially.

22 / Vendor Spotlight

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Why The Miranda Team? • 3 Home Inspection Choices Plus, Premium or Prestige • Complimentary Energy Assessment (after closing) • One Call Will Handle It All • Over 5000 home inspections performed, #4 out of 537 Pillar To Post Franchises in North America & #1 in Revenue and number of inspections in 2020 in Connecticut. • Radon, Well Yield & Water Quality & Mold/Indoor Air Testing. • Septic, Termite/WDI, Chimney, Pool, Generator Inspections & City Sewer Scoping. The Miranda Team provides professional home inspection services for: • New Haven County. Meet The Team: Here Book Your Inspection: Here Give Us A Call: 203-490-7855 23 / Vendor Spotlight

This is not intended to Replace Legal Advice, we suggest you consult your own attorney when creating your tenant selection criteria

1. All information on the application is correct; any factual errors are an automatic 2.rejection.Theapplication is signed and dated and has authorized the property owner to conduct a background check.

5. Any records of criminal activity that that property owner would deem puts the property, its owner or other residents at risk, including, but not limited to, sex offences, violations of the US Patriot Act covered by the Office of Foreign Asset Control or other international judicial authorities, arson, domestic violence, any other crimes of violence, weapons violations, etc. Criminal records may be reported indefinitely under the FACTA update of 2003.

24 / Tenant Screening Tips & Tricks

3. Any criminal record of drug dealing, drug trafficking, manufacture, or distribution are an automatic rejection. 4. Any record of prostitution, illegal gambling, or any other crime that would violate State laws regarding illegal use of a rental property are an automatic rejection.

6. Eviction History. How long ago is acceptable? How many evictions? The reason for the eviction? The FCRA only allows TenantTracks to report eviction records for seven (7) years. (Create your own policy and stick with it)

Sample Criteria For Accepting Or Rejecting A Rental Applicant By: Paul Jenney, Compliance Officer with TenantTracks

7. Landlord History. TenantTracks may only report information obtained from owners and management companies for seven (7) years including notices to quit, noise issues, cash for keys, etc. How many? How recent?...again; (Create your own policy and stick with it) 7a. Landlord References. If they are a career renter, I would ask for the last three at minimal, and then call the second two. They have nothing to lose by giving the truth, but grill them about the information, last addresses they gave on that application (might be hiding something), and did they pay the rent on time/in full/how many late payments, any problems. This may seem like “Landlording 101”, but this is helpful information on how they will perform as your tenants.

9. Credit History. What is the minimum Vantage Score to be accepted? This will vary by property. We recommend that the criteria is signed and dated and can be updated as market conditions change e.g. the rental market tanks and you lower your score requirement to attract more potential renters (and accept more risk) and vice versa, if you get more applicants, you raise the score 9a.requirement.Ifyouare accredited to receive a full credit report, then how many thirty (30), sixty (60), ninety (90) day late-payments do you allow? How many collection accounts? How many charged off accounts (unpaid debt) 10. IF employed, how long should they have been there? Can you independently confirm this? I recommend calling the HR Department and faxing/emailing a release to provide you with the information, as an alternative you can ask for a copy of the applicant’s last tax return, if not employed, ask for proof of income. Have a potential tenant you need screened? Visit tenanttracks.com for all your tenant screening needs!

Know Who You Are Renting To! 25 / Tenant Screening Tips & Tricks

8. If your property is carpeted, do they own a vacuum cleaner? It's a strange criterion, but you want to protect your investment so it IS a fair question to ask.

What’s Happening Near You? The Statewide Events and Meetings calendar is a resource for local landlords and property owners to meet up, network and grow your real estate opportunities. Get Involved, Stay Informed.

August 2022 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 CTREIA 18 19 20 21 CTREIA 22 23 ECAR 24 25 CTREIA MSAR 26 27 28 29 30 31 NHMR

CT Real AssociationInvestorsEstate(CTREIA) Next Meeting: Aug. 17th Time: 6:00 PM 9:00 PM Where: CTREIA Center 415 Silas Dean Highway, Suite Wethersfield,304A CT 06109 Contact: 860 265 4414 About: At this exclusive workshop, you'll be able to kickstart your real estate investing career with a like minded group of professionals. You can learn how to invest in real estate RIGHT NOW, hear about what others are doing, and even get ideas you can apply immediately! Heck, you may even meet your future business Registerpartner! here! CT Real AssociationInvestorsEstate(CTREIA) Next Meeting: Aug. 21st Time: 9:00 AM 4:30 PM Where: Sheraton Rocky Hill 100 Capital Blvd. Rocky Hill, CT 06067 Contact: 860 265 4414 About: At this special workshop, Robyn will teach you: • Where to Find the Best Properties to Keep • Creative Deal Structuring • Converting Your Rentals To Vacation Rentals To Triple Your Income • And much more! If creating a large, passive income stream is something interesting to you, do not miss this unique opportunity. Register here! Eastern AssociationCTRealtors(ECAR) Next Meeting: Aug. Time: 5:00 PM 8:00 Where: Outer Light Brewing Company 266 Bridge Street Groton, CT 06340 Contact: 860 892 2595 About: Come test your skills and WIN PRIZES help the teachers and students of one school ready for their 2022-23 school Entertainmentyear! by DJ Seymour of Level Up TriviaTrivia Teams: up to 6 players per team / 20 teams Registermax.here!Networking&Meetings&Events

CTof PRIZES8:0023rdPM2595yourtoandschoolget 23 Up CT Real AssociationInvestorsEstate(CTREIA) Next Meeting: Aug 25th Time: 6:00 PM 9:00 PM Where: CTREIA Center 415 Silas Dean Highway, Suite Wethersfield,304A CT 06109 Contact: 860 265 4414 About: Ed Mathews delivers the 3 secrets every real estate investor needs to know to make money in any economy. • Secret 1: How to find your deals • Secret 2: How to fund your deals • Secret 3: How to make the time to build your empire without leaving your job (yet) ... and much, MUCH More! Register here! NewMiddlesexHavenRealtors(NHMR) Next Meeting: Aug 31st Time: 4:30 PM 7:30 PM Where: Milford Yacht Club 131 Trumbell Ave Milford, CT 06460 Contact: 203 234 7700 About: 4:30-5:30 PM Networking & Cocktail Hour RawDrinkw/ComplimentaryticketBar&HorsD ’oeuvres 5:30 7:00 PM Full Buffet Dinner & Dessert More info here! MidAssociationState of Realtors(MSAR) Next Meeting: Aug. 25th Time: 5:30 PM 8:00 PM Where: 16 Straits Taps & 16TavernStraits Watertown,TpkeCT06795 Contact: 860 793 9414 About: You are invited! Join us for our August MidState Mixer get together for an evening of fun, networking and good food. Register here!

P. (800)369 6153 F. (888)900 9773 E. info@ctpoa.com www.ctpoa.com

CT Real Estate Today allows you to hit your target audience for all things real estate. Contact us info@ctpoa.comat Follow ADVERTISE WITH US! Become Visit: The improvecomposedConnecticutofREALTORSthebusiness

Follow CTPOA: https://www.facebook.com/CTPOA/ Become a CTPOA Member! Visit: Connecticuthttps://ctpoa.com/PropertyOwners Alliance is of experienced property managers, REALTORS and landlords working together to business conditions for rental property owners.

About Us Advocates For Property Owners The Connecticut Property Owners Alliance is composed of experienced property managers, realtors and landlords working together to improve the business conditions for rental property owners. The Alliance saves its members money on essential real estate services, reviews and testifies on pending legislation & law changes and offers its members workshops and meetings on topics that impact landlords. Why The Property Owners Alliance Was Formed The Alliance strives to ensure your success in real estate by: • Saving you money on essential real estate services • Informing you of law changes impacting your business • Providing workshops and meetings to help you become a better educated and prosperous rental property owner.

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