CT Real Estate Today - December 2021 Edition

Page 1

In This Month’s Edition Judge Strikes Down Boston’s Eviction Moratorium; Mayor Wu Says She’ll Push To Keep It

How To Choose The Best Contractor For The Job

Eight Landlord Tips To Save Money This Year

Save Money On Heating, Insulate Your Home!

Check out our December Social Event Calendar. Please Contact Us to have your organization’s events added to our January Calendar.

December 2021

Published by:


Table of Contents Publisher’s Message A Message From Bob DeCosmo, President Of CTPOA

News And Views From The Capitol Judge Strikes Down Boston’s Eviction Moratorium; Mayor Wu Says She’ll Push To Keep It

Realtor Report Rents Continue Surging: Where They’re Rising The Most

Insurance Insights Prepare For Winter To Help Avoid Potential Insurance Claims

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


Published by: CTPOA

Financially Speaking

CTPOA’s Mission:

Eight Landlord Tips To Save Money This Year

Get Energy Efficient Save Money On Heating, Insulate Your Home!

The Legal Corner 8 Tips For How To Protect Yourself As A Landlord In Renting Residential Property

Vendor Spotlight Need Junk Removal? Check Out Royalty Removal Solutions!

Educate our members on the Best Practices.

Increase profitability. Provide access to Core Services. Advocate for Property Owner Rights. Meet Our Team:

Contractor’s Corner How To Choose The Best Contractor For The Job

Bob DeCosmo

The Intelligent Investor

Melissa DeCosmo

Seven Real Estate Investing Tips For Beginners

Paul Jenney

Tenant Screening Tips & Tricks Tenant Screening - Not The Time To Cut Corners!

Carmine DeCosmo

Sean Harnish Chelsea Sayegh PO Box 4795 Waterbury, CT 06704 800-369-6153 info@ctpoa.com


By Bob DeCosmo Advocate For Property Owner Rights Wishing everyone a wonderful Holiday

Over the next few weeks, take some

Season and a Happy New Year.

time and spend it with your family and

The past couple of years have been tough, we’ve lost friends and loved ones and every day the media outlets seem to repeat the same wretched news. The Holiday Season provides us with a marvelous opportunity to reflect on all the happy times we have experienced in the past and dream about what good

friends. Savor each moment the Holiday Season provides for us and make new

and lasting memories for the future. Holidays are all about family and friends. Holidays are also a time for religious traditions and beliefs, revisit these practices if they have faded from your lives.

fortunes are just around the corner. It’s

Go out and celebrate this year, you

the time of the year to take a step back

deserve it. Raise that glass and make a

and enjoy these memories and smile.

toast and have some cheer.

Covid taught us that life is brief and time is a cheat!

Holidays are meant to be enjoyed and I hope everyone enjoys their Holidays this year.

04 / Publisher’s Message


CTPOA thanks this year’s Holiday Party sponsors for making the event possible! Please patronize them! Cesar L. Sousa Attorney At Law 203.729.4555

The Broderick Law Firm 203.758.8822

05 / Publisher’s Message


Register: ctpoa.com/events



Judge Strikes Down Boston’s Eviction Moratorium; Mayor Wu Says She’ll Push To Keep It By: Wire Reports, from nbcboston.com Boston Mayor Michelle Wu will seek a stay to keep a citywide eviction moratorium in place after a housing court judge on Monday struck down the policy

in a ruling that called the temporary ban an "overreach of power." Housing Court Justice Irene Bagdoian

exemptions" to the law. "This Court perceives great mischief in allowing a municipality or one of its agencies to exceed its power, even for compelling reasons," Bagdoian wrote. The judge added: "In this Court's view, such expansion of power by a governmental

sided with a landlord and a constable who agency, even for compelling reasons, challenged the moratorium that former

should be unthinkable in a democratic

Acting Mayor Kim Janey imposed in

system of governance."

August, ruling that the Boston Public Health Commission does not wield legal authority to circumvent state law governing evictions.

The city's moratorium blocked the

execution of evictions, with officials arguing in support that it would protect tenants from displacement and from the

In her decision, Bagdoian wrote that the

COVID-19 transmission risks associated

Massachusetts Legislature and not

with more crowded living situations or

Boston's health officials must decide

shelters.

whether to implement "temporary 08 / News & Views From The Capitol


"I'm deeply concerned about the impacts of today's decision on struggling families," Wu said in a statement Monday evening. "Our law department is reviewing the decision closely and will seek a stay of the decision to keep the eviction moratorium in place. We need more protections for renters in Boston. Our focus remains on protecting tenants

allowed a temporary statewide eviction

from displacement during the COVID

moratorium to expire in October 2020, at

emergency, and connecting our

which point the administration and court

residents to City and State rental relief

leaders launched a diversion program to

programs."

connect landlords and tenants to

The moratorium was put in place on Aug. 31 by the administration of then-Mayor

emergency financial aid, mediation and legal assistance.

Kim Janey, who said it was to protect

Through October 2021, the state had

residents still struggling to pay rent

distributed $363 million in rental aid to

because of the coronavirus pandemic.

more than 50,000 households, according

A city landlord and a constable, who serves judicial processes, challenged it in court.

to administration data. Housing advocates continue to press lawmakers to advance a bill that would pause nofault evictions and require landlords to

Attorneys Jordana Roubicek Greenman

exhaust rental assistance options before

and Mitchell Matorin, who filed the

pursuing an eviction.

lawsuit, said in a statement that Boston “lacked the authority to override state law and render the court’s own judgments unenforceable.”

The U.S. Supreme Court in August struck down the Centers for Disease Control’s nationwide eviction moratorium.

State lawmakers and Gov. Charlie Baker

09 / News & Views From The Capitol


Rents Continue Surging: Where They’re Rising The Most By: Sharon Lurye, with realtor.com The COVID-19 pandemic sent rental prices

This surge in rent is coming at the same

tumbling as city dwellers fled for the hills,

time that buying a house is getting less

but the latest data shows those prices

affordable, too. Home prices are at record

haven’t just recovered—they’re surging to a highs and more people are returning to new all-time high. Median rents jumped 13.6% compared with

cities, which creates more competition and

higher prices in the rental market.

last year in the 50 largest metro areas of

In addition, the federal government ended

the U.S. as people start to return to cities,

its moratorium on evictions. This means the

according to monthly rental report from

foreclosure rate is going up, so more people

Realtor.com®. Rents hit a median price of

may be forced to sell their home and rent

$1,654 in September, which means renters

instead. It also means landlords have more

are paying $198 more compared with the

power to kick out tenants and raise the rent

same time last year and an extra $222

on whoever moves in next.

versus two years ago, before the pandemic began.

However, the increase in rents does at least signal that the economy is recovering from

“It really highlights how challenging

COVID-19, as tenants come back to cities

affordability is at this point,” says George

and support local businesses.

Ratiu, manager of economic research for Realtor.com.

10 / Realtor Report


Growth was particularly high in metros such as Tampa, FL, which includes St. Petersburg, which has seen a whopping 33.3% increase in rental prices. Monthly rents were a median $1,800 in the Florida city.

“The rental market is as tough as the sales market,” says Alma Alexander, a Realtor who’s with Coldwell Banker in Tampa. She says a growing economy and strong sports industry are attracting many people to the Tampa region. The pandemic also gave the area a boost as many folks in

snowier areas who could work remotely headed for cheaper, sunnier parts of the country. But in cities across Florida, there’s simply not enough housing to meet the demand. The other metro areas with the highest yearly growth in median rent were Miami, at 31.6%; Riverside, CA, at 26.5%; Phoenix, at 26.4%; and Las Vegas, at 25.9%. The pandemic saw a particularly large exodus of renters from big tech hubs like Seattle and Austin, TX, since tech-

remote work. As of September, rents in those cities are largely back to normal, and in some cases even higher than they were at the beginning of March 2020. In Seattle, for example, median rents dropped around $300 from March 2020 to January 2021, from $2,923 to $2,610. As

of September, they’re back to almost the same price they were before, at $2,895 a month. In Austin, rents last month were around 20% higher than they were in March 2020, jumping from $1,367 to $1,647. More people returning to these tech hubs is a good sign generally for big cities and

the U.S. “In a sense, they were bellwether markets for when rental housing would see a return toward some degree of normal,” says Ratiu.

related jobs are often well-suited for

11 / Realtor Report


Prepare For Winter To Help Avoid Potential Insurance Claims By: Hanover Insurance, from hanover.com With winter months comes inclement

debris (like falling leaves, sticks and

weather. Before winter blows in, it’s

ice) from accumulating. 2. This can

important to ready your home to

help prevent moisture build up and an

withstand the harsh conditions. Making ice dam from forming, which can home maintenance a priority in the fall damage your roof or siding. can help identify potential problems early, prepare your home and property, and reduce the chance of an insurance claim in the future.

3. Check your eaves trough and downspouts for debris to allow for proper water drainage, preventing water from entering the foundation of

Here are some home maintenance tips your house and flooding your to help you prepare for the coming winter: Outdoor: 1. Check your gutters for damage and make sure they’re secured to your house. Clean out gutters to keep 12 / Insurance Insights

basement. 4. Assess your roof for leaks and cracks, and check the seal around the chimney and skylights in order to be prepared for heavy snow. Call a professional for repairs.


5. Trim tree limbs hanging over your 4. Clean the space behind your house to avoid falling and damages

clothes dryer and remove lint or dust

during a storm. Contact a

that may have accumulated inside.

professional if your tree limbs are

5. 5. The cool, dry weather in the fall

hanging over power lines.

causes static electricity, creating a

6. Store your grill, outdoor furniture and garden decorations to prevent damage from weathering a storm and to be sure they do not blow around and cause damage to your house. 7. Disconnect your garden hose and shut off the water to outside in order to prevent freezing pipes.

risk of sparking a fire. Inspect your smoke detectors and carbon monoxide detectors. Replace batteries as needed and make sure there’s a smoke detector on each floor of your home to be safe. Daylight savings is an ideal time to assess your detectors when turning your clocks back.

Indoor: 1. To avoid your pipes freezing, keep your thermostat set no lower than 55 degrees Fahrenheit and allow warm water to trickle from faucets overnight.

2. Get your chimney cleaned by a professional before using your fireplace. 3. Get your furnace or boiler system

A little extra attention now can help safeguard your home all winter long. Be sure to contact your independent insurance agent to discuss home coverage options.

checked before you start using heat regularly. 13 / Insurance Insights


Five Screening Tips To Help Minimize A Property Owners Risk When Moving In A New Resident By: Adrianne Angel, Pro Property Management, Owner / Broker 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. 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.

14 / Property Management Tools & Tips


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. 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. 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. 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


Eight Landlord Tips To Save Money This Year By: Sarnen Steinbarth, from forbes.com No matter what your goals are in 2020

damage to your property. Make sure you've

personally or as an independent landlord, a

checked the applicant's credit history, criminal

few DIY tips and hacks can help your rental

background and eviction history to know who

properties and business save money this

will be living in your properties.

year. You should always look for ways to maximize your profitability, and to get the

2. Always fill out condition reports.

best ROI on your property investment, you

Filling out condition reports when a tenant

need to be sure to invest in trustworthy and

moves in and moves out will ensure you

reliable tenants, organization and education.

know the full status of your rental property

Starting these habits in the first quarter of the

before and after their time there. Schedule

year will allow you to look back at the end

walk-throughs with your new tenants and

and see the progress and dollars saved.

even complete the condition report with them

Without further ado, here are my top eight

present so

tips landlords can use to save money:

there are no

1. Screen your tenants.

surprises at move-out.

This cannot be stressed enough — protecting The reports your properties, and therefore saving money

and walk-

in the future, starts with finding the right

throughs will

tenant. You don't want to cut corners on the

help you

screening process because it can cost you in

back up any

the long run with evictions, vacancies and

security deposit deductions.

16 / Financially Speaking


3. Keep up with small maintenance. Small maintenance tasks should be taken care of as soon as possible to maintain safety in rental properties and protect you from liability. It will also save you from things turning into more significant, more expensive problems later on. For example, fixing loose gutters, broken or falling tree branches, stains in the carpet or loose drawers are all easy fixes to help.

miss out on any of the deductions for landlords. When you maximize the deductions you qualify for, you can increase profits for the year and ease your tax burden. Stay educated on what you qualify for and make sure you know how to handle your taxes and rental properties properly.

7. Consider extended leases. Extended leases are an excellent option for

reducing turnover. If you screen your tenants

4. Conduct routine inspections of

beforehand, you will have no problem finding

the property.

and keeping the perfect one for your

Conducting routine inspections of your rental property enables you to keep up on small issues or things that need to be fixed. You

property, and once you do, extending the lease is a great way to keep them in your rental and reduce turnover costs.

can also see how your tenant is treating your 8. Utilize technology. property and if they are violating anything in

Technology can be your best friend as a

the lease. You don't want to be overbearing, landlord. It will keep you more organized and so inspections every six months are help streamline your rental process. Having recommended.

piles of paperwork that include applications,

5. Include landscaping costs in rent. forms and leases can cost money and be a This is especially important for houses as landscaping is a part of the whole package to help fill vacancies. Don't leave the

landscaping to the tenants who might neglect the yard, but instead, build the costs

liability if there is sensitive information on certain documents. Marketing costs, such as flyers, can also be a hassle, so moving the entire process online will save you time and

money while also making your life easier.

for landscaping into the rent to either hire

It's never too late or too early to adopt a

professional help or complete tasks like

saving mentality. By incorporating any or all

mowing or gardening on your own.

of these tips, your landlord business will

6. Know your tax advantages.

thrive in no time.

With tax season rolling around soon, don't 17 / Financially Speaking


Save Money On Heating, Insulate Your Home! By: Adam Polce, Energy Auditor With snow in the forecast, it's time to get

If you’re a savvy homeowner and want to

ready for another brutal New England

check your insulation levels yourself, use

winter. Before you turn up the thermostat

the chart below to figure out if you have

and pull out the extra blankets, head over to enough. We generally recommend R49 in www.insulatemyhome.com and schedule a

CT but have options to suit almost every

no obligation insulation assessment.

house. An easy tell tale is if you can see

Chances are you have already thought

your floor joists. If you can, you’re heating a

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We’re offering $200 off any project over

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If you don’t want to crawl up into the attic, wait until the snow falls. It’s easy to tell by looking at the melt patterns on the roof like the home below. You can clearly see where your heat is going just by seeing what melts first and where.

If you’re ready to beat the cold, now is the time. Give us a call or send us a text at 800297-3020 and we’ll help you through the whole process. Here’s a quick reference to our pricing. What Are We Insulating?

What Material?

How Much Will It Cost?

Attic Insulation

Cellulose

$1.19 Per Square Foot Installed

Exterior Wall Insulation

Cellulose

$1.19 Per Square Foot Installed

Basement Ceiling R0-R19

Fiberglass

$1.19 Per Square Foot Installed

Crawl Space Ceiling R0-R19

Fiberglass

$1.19 Per Square Foot Installed

Air Sealing

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19 / Get Energy Efficient


8 Tips For How To Protect Yourself As A Landlord In Renting Residential Property By: Landon Murie, from thescopeofpractice.com Anyone who has rented a home or

don’t want to deal with everything we are

apartment to someone has hoped to be

about to cover, you can always consider

lucky enough to have a tenant who will care hiring a reputable and successful property for the property. Sometimes everything

manager in your area. This article covers

works out fine, other times not so much.

some characteristics of what a successful

This goes for both long term rentals

property manager does and focuses on.

and short-term rentals, but for today we will be talking more about long term.

If you do decide to take on the task of being a landlord all alone, here are some basic

Most states have landlord-tenant laws

guidelines to protect you, the landlord, and

based, at least in part, on the Uniform

your property:

Residential Landlord Tenant Act of 1972. The law serves as a model law to clarify

1. Put everything in writing.

and standardize the rights and

This applies equally to landlords and

responsibilities of both landlords and

tenants. I hope you never have the

tenants. We want to help you understand all unpleasant task of resorting to court action to evict a tenant. But, if you do, the judge the things you can do to further protect yourself as a landlord. You should also keep in mind that if you

20 / The Legal Corner

will want to see the key written documents relating to the property. This includes the rental agreement and any modifications,


inspection reports, receipts, repair

4. Conduct a walk-through of your

requests and correspondence between

property with the tenant within one

you and your tenant.

week of a new tenancy.

2. Ensure your rental agreement is

Create a written report of the condition and

specific and clear.

cleanliness of each room. Be specific.

There are many standard rental/ lease agreements available online that work as a good starting point. You can modify them as needed to provide greater clarity and add specific provisions which may be unique to your circumstances. 3. Deposit and fee requirements should be very specific. There are a variety of deposits landlords can require, including security, damage and pet deposits. The name for the deposit type often determines how the funds can be used if needed.

The completed report should be signed by both the landlord and tenant. Keep the original. Provide a copy to the tenant. Most states require this report if a landlord charges a damage deposit at the time of rental. 5. Keep the property in good shape. Following a written request from a tenant for needed repairs, start work in a timely manner. Failure to undertake repairs may

allow the tenant to terminate the rental agreement. That may also require repayment of any rent for the time the tenant was unable to reside in the

Security deposits are to secure payment of property. Repairs needed to provide the rent and utilities. However, you can electricity, heat, or hot and cold running also use them to repair damage if the

water must often begin within 24 hours of

rental agreement allows for this. Damage

written notice. Repairs to plumbing, stoves

deposits are to fund physical repair and

and refrigerators must usually commence

restoration of the premises for anything

within 72 hours.

beyond reasonable wear and tear. Pet deposits are for fixing any damage specifically caused by an animal. This may

6. Follow proper procedures to evict a tenant.

include carpet cleaning or yard and fence

Eviction begins by giving timely written

damage.

notice to a tenant. For month-to-month

21 / The Legal Corner


tenancies, landlords can generally

cannot physically throw a tenant off the

terminate a tenancy for any reason as long

property. Leave that duty to law

as the proper notice is given in writing 20

enforcement after obtaining a legal eviction

days before the end of the month. If the

order.

tenant moves by the end of the month, no further action is needed. However, if a tenant continues to reside in the property after the end of the month, formal court action must be initiated to force the tenant to leave. Courts usually have an expedited process to file and process these cases. However, until the court signs an eviction order, sometimes called a “writ of restitution,” the tenant can remain on the property. 7. Understand your legal limitations. As frustrating as it can be to have a tenant

8. A happy tenant is often a good tenant. Aside from following legal requirements to protect your rental home, a few basic people skills can go a long way to cultivate loyalty and encourage care for the property. Treat your tenants with respect. Promptly respond to their requests. If the tenants are new to the area, provide a written list of some of the stores, schools, restaurants, and local facilities, including directions. Reward your renter with movie tickets or a small gift card for consistent ontime rental payments or tenant referrals.

who is behind in rent or failing to properly

Following these legal guidelines and paying

maintain the property, landlords usually

attention to the needs of your tenant should

cannot lock a tenant out, shut off utilities to

help to safeguard your property and

encourage a tenant to vacate or seize a

achieve ongoing success as a landlord.

tenant’s property. Similarly, landlords 22 / The Legal Corner



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How To Choose The Best Contractor For The Job By: Marian White, from moving.com Renovating a home is a major undertaking

etc). Trust us when we say that there’s a lot

– one that requires a good deal of

more to renovating a home than HGTV

preparation, organization, and knowledge.

would lead you to believe. An experienced

Without the right general contractor, you

general contractor should be able to

could end up with a botched project and an

manage all of the moving parts of a home

overall experience that is less-than-

renovation, including subcontractor work,

pleasant. Not sure how to choose the best

inspection approvals, obtaining permits and

contractor for the job? Start with a

other building requirements. Here’s how to

thorough search that includes seeking word choose the best contractor for the job in 7 -of-mouth suggestions from friends and neighbors and searching digital marketplaces, such as Angie’s List and Houzz. While expensive, general contractors can

easy steps. How to choose the best contractor for the job 1. Obtain multiple bids

make your home renovation experience a

First and foremost, you’ll need to obtain

smooth and successful one. After all, it’s

bids from at least three different

unlikely that you, the homeowner, will be

contractors. Don’t ever accept a bid over

able to spend all of your time overseeing

the phone. Make sure you have met the

and managing various subcontractors

contractor in-person and walked them

(think: electricians, plumbers, drywall repair, through the home. Conducting a walk26 / Contractor’s Corner


through with the contractor and explaining For instance, if you need to build or the renovation in detail is the best way to

renovate an outdoor patio area, but a

ensure you receive an accurate cost

contractor only has experience renovating

estimate. It’s also a good idea to provide

a kitchen, then that contractor may not be

the contractor with an itemized list of any

the right person for the job.

and all changes you wish to make to the home. This will ensure that you receive the most accurate bid possible. Once you

3. Take note of their communication style

receive bids, compare the estimates and

When interviewing a contractor, take note

offerings. If a bid is exceptionally high or

of their communication style. In other

low compared to other bids, be sure to ask words: pay attention to how they communicate with you. Is it mostly by why. 2. Consider the needs of your specific project

phone and text or does the contractor prefer to email? Are they slow to respond or do they reply quickly to any and all

In addition to costs, it’s important to

inquiries? If you need someone who gets

consider what projects a contractor

back to you at lightning speed, then don’t

specializes in, if any. Be sure to ask the

hire a contractor who ignores your calls

contractor about prior experience. A

and texts for long periods of time. If you

reputable contractor should be able to give prefer to talk in-person, then be sure the you photos and references from past

contractor is available for meetings at the

projects. Think about the specific needs

home. In addition to the ways in which a

of your project. Are you remodeling one

contractor communicates with clients, be

room or an entire home? Do you need

aware of their specific style of

someone who also has experience with

communication. Are they assertive or

landscaping and dry scaping? What about passive? Home renovations can take someone who has experience renovating

anywhere from a few weeks to a few

a wood-frame house versus a concrete-

years, so it’s important that you jibe with

block home? These are the types of

the contractor and their specific

questions you should ask yourself when

communication style.

determining which contractor is for you.

27 / Contractor’s Corner


4. Consider their availability How available is the contractor? If the

5. Check to make sure the contractor is licensed and insured

contractor is in high demand, then

To avoid being ripped off, scammed or

you’ll likely have to pay more for their

sued, it is absolutely crucial that you

services. In addition, you may have to

check to make sure a contractor is

wait for the contractor to complete

licensed and insured. Without proper

other projects before they can take on

insurance, you could be liable if a

your home renovation. A contractor

subcontractor or worker becomes

who is extremely busy may even try to

injured while on the job. In addition to

price themselves out of your project

bodily harm or injury, a contractor’s

with an exceptionally high bid. Keep in

insurance should cover property

mind, though, that a contractor who is

damage. Unfortunately, there are

in high demand is also one who is

contractors out there who claim to be

clearly good at their job (and may be

licensed and insured when, in fact, they

worth the wait!). However, if you need

are not. To ensure that you are hiring a

someone who can start work on your

reputable and licensed contractor, be

project asap, then you’ll need to find a

sure to ask for a contractor’s

contractor with more availability.

credentials during the interview process.

28 / Contractor’s Corner


Check with your state and local

background check for all

government to confirm that the

subcontractors?

contractor meets all licensing requirements. For further information,

7. Check reviews and references

check the Better Business Bureau’s

Finally, be

licensing resource page.

sure to

6. Meet their team and

check a

subcontractors

contractor’s

Keep in mind, you’ll be interacting and dealing with the contractor’s team and subcontractors on a regular basis. When interviewing a contractor, make sure to ask who they use for certain renovation projects. For instance, if

you’re renovating an entire home, you’ll likely deal with multiple service professionals, including electricians, plumbers, HVAC professionals, flooring professionals and more. You’ll want to do the same due diligence on your subcontractors as you do for your contractor. Be sure to also ask about the contractor’s management style. For instance, do they personally oversee every aspect of the renovation in-person? How much time

reviews. We recommend first searching for a contractor’s Better Business Bureau profile to obtain information about their complaint history and customer reviews. According to the BBB, “BBB Accredited Businesses make a commitment to uphold BBB’s accreditation standards including: to build trust, advertise honestly, tell the truth, be transparent, honor their promises, be responsive to their customers, safeguard privacy and

embody integrity.” In addition to checking the BBB profile, ask the contractor for local references you can call.

do they spend overseeing the subcontractors? Do they conduct a 29 / Contractor’s Corner


Seven Real Estate Investing Tips For Beginners By: Greg Herlean, from forbes.com In today’s market, investing has grown beyond

yearly upkeep, upgrades, and expenses like

traditional assets. While stocks, bonds and

utilities and taxes.

mutual funds are still common portfolio inclusions, there are many other avenues that can also be rewarding in the long run, if you are willing to put in the time. One such avenue is real estate investment, which can be a lucrative way to build money for your retirement. However, it’s not for everyone. Real estate investment takes dedication, research and planning. If you are interested in investing in real estate, here are seven tips to guide you. 1. Know the costs involved. To be frank, real estate investment is not cheap. Properties cost quite a bit to purchase outright, but if you have the funds or are willing to take out a loan, it can be worth it. However, it’s not as simple as purchasing a property and watching it make money. There are additional costs to keep in mind: basic maintenance,

30 / The Intelligent Investor

If you decide to take out a loan, don’t forget to factor in real estate investment trusts. REITs

are companies that finance or own real estate property, based on specific requirements. They allow investors to invest in properties, and while REITs pay out most of their taxable income, investors are responsible for the income taxes. Everything has a cost, so be sure to factor everything. Know what you are getting into before jumping in. 2. Select the property type. So, you have enough set aside for real estate investment. Now, you must decide which type of property to invest in. You can purchase rentals, which could be either commercial or residential. You can become a landlord and rent out a home or apartment. You can use your property as an Airbnb or a vacation rental.


If keeping residential property isn’t something you’re interested in, you can opt for the commercial option. Or you can avoid renters and purchase property to flip for a quicker return. Before selecting a property, decide what your plans are for it and what goals you have in mind. 3. Check out the area.

When it comes to real estate investment, location is a key factor. You don’t want to buy in an area just because the price is right. Perform your due diligence: Check the market value, the neighborhood and what the location offers. The type of rental you’re interested in can help determine where to look.

occur on the property. It can also give “checkbook control,” which can help if time is a factor when accessing your retirement funds for real estate-related purchases. After opening an LLC using your self-directed individual retirement account, your account is the business, and you are the assigned business manager. This process allows you access to your funds whenever you need them; however, that doesn’t mean you don’t need a custodian, or that you can take the funds for other uses. All funds removed must be used on the property, and any withdrawal needs to be reported to your custodian. However, instead of being charged for multiple account changes, you only need

Research the competition, and determine

to report it once. This is especially useful for

whether the property you’ve chosen is in a

paying fewer fees.

prime spot for its purpose. For residential or vacation rentals, consider the community,

5. Decide terms.

proximity to popular attractions and way-of-life After selecting your property type and factors. For business rentals, check out the

location,

area’s population, parking and demographics. you can 4. Protect yourself.

come up with the

If you are thinking about investing in one or

terms

multiple properties, consider using an LLC to

regarding

purchase them. An LLC, or limited liability

your

company, can help you with risk

investment.

management. The LLC has ownership over

Calculate

the properties; if anything should happen on

rent, fees,

those properties, you are not held personally

yearly costs and emergency funds to keep a

responsible. Additionally, having an LLC can

running budget. Are utilities going to

protect your retirement fund should something

31 / The Intelligent Investor


be included? Keep in mind any fees and how

what you can do to the property yourself. Have

much funding you’ll need to maintain the quality a go-to list of people who you will need to assist of your investment. Consider hiring a property manager, especially if you plan on having properties in different locations. The key is to decide this ahead of time, so you aren’t blindsided when the bills

start to roll in.

you with your investment. Property managers, an attorney, a CPA, real estate agents and money lenders are all important resources. Also, keep in mind anyone you will need to keep your property in tip-top shape: an

inspector, plumbers/electricians, a handyman, pest control experts and contractors. While you

6. Buy property with growth in mind.

may not need all these people upfront, it’s good

When you invest in real estate, you may

to have a few reliable numbers to call.

eventually want to sell it. Whether you intend to Real estate investment can be an undertaking; flip it immediately or hold on to it for a while, however, when done properly, you can build a you’ll want to profit. The goal is to sell your

successful nest egg. Take your time and

property for more than you paid for it. Build your perform due diligence before deciding if real property value by making simple upgrades or estate investment is right for you. Be sure you additions. When you increase property value,

have the time and resources to dedicate to this

you can sell it for more, and your hard work will

investment strategy and build your retirement

pay off in a big way.

fund today.

7. Keep important numbers on hand.

The information provided here is not

Real estate investment takes a village. While

investment, tax or financial advice. You should

you may have the power, you are limited in

consult with a licensed professional for advice concerning your specific situation.

32 / The Intelligent Investor


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


Tenant Screening - Not The Time To Cut Corners By: Bob DeCosmo Convenience, but at what cost? –

need the most accurate report for your area

Integrated Property Management

that you can purchase. Each report should

Software

contain:

When screening prospective renters, selecting

Full credit report with score

the company to run background checks is not

National eviction and criminal history

Terrorist watch-list and sex-offender info

People search

Compiled information showing a renter’s

when you want to go bargain basement shopping. There are many companies in the screening industry to choose from and understanding what “ingredients” they contain is essential for accuracy.

lease and payment history reported by

For starters, there is truly no nationwide

landlords and area management

electronic database for criminal and eviction

companies.

records that covers all 50 States. Screening reports currently contain data from only 45

States. For example, in New England, Massachusetts does not provide criminal histories to screening companies, you need to buy that data separately from the Massachusetts State Police for $25 per applicant.

Let’s talk about the credit report component first. You do not need a social security number to obtain a credit report, just a full name and address. Renters with green cards or no documents can apply for credit cards using a tax-payer identification number so running credit reports without a social security number is an option you want to have available to you.

All tenant screening services are not alike, you

34 / Tenant Screening Tips & Tricks


Further, credit reports no longer show civil court

25 previous addresses. To use this technology,

cases or Federal and State tax-liens in their public

you need to host eviction records on your own

records section, just bankruptcies. This change

server to then apply the “alias name logic” after all

occurred back in 2017, so you need another

the national databases have run. Then you can

product to find Civil and Small Claims Court

gather all the information uncovered with the

judgements.

national products and next search for eviction and criminal records hosted on the company server to

There are a few national eviction databases available for screening services to use but only one

match alias names.

database provides housing court, civil & small

TenantTracks has its own complete Connecticut

claims court and tax-lien information, and this data

eviction database that includes all 15 housing court

costs more to purchase than just the national

locations, not just the 11 courts that other

eviction database. How can any screening

companies search. We also host Rhode Island and

company justify that saving $0.50 on their

Massachusetts eviction records on our server to

wholesale report costs is proper? Yet, most do and look for alias name matches. Recently, the New choose the lesser quality eviction database, this

Hampshire Courts approved our request to compile

omission creates needless liability and it’s

their eviction cases so we will soon have a set of

important to access these court records.

those eviction records as well.

Most screening companies also fail to provide a

Most tenant screening companies just “Private

People Search and that’s invaluable information

Label” a national screening company’s product and

and essential for an accurate screening report. You mark up their price leaving everyone involved to need a People Search to uncover “Alias Names”

the rental transaction exposed to their average

and previous address history associated with the

quality data. When it comes to tenant screening,

applicant’s social security number.

you want the best data possible!

Why is this important? Eviction records are based

Quality counts, it shouldn’t cost more when

on a name and address match only. If an applicant

screening tenants. Landlords should insist on the

was evicted three times and then got married and

best quality screening reports because today it can

changed their last name, none of the three

cost you dearly! With the courts backed up, you

previous evictions under the maiden name would

can never be too careful about renting apartments

show unless the screening company is using an

so choose the best quality screening report you

“Alias Name Matching” algorithm.

can get your hands on.

However, it’s not a simple as it seems. The

For more information, please check out

National Eviction databases allows you to run only

www.tenanttracks.com.

one applicant name search. We have uncovered records with as many as 19 alias names and over

35 / Tenant Screening Tips & Tricks


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.


December 2021 Sun

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Tri-County Alliance of Realtors

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Events & Meetings & Networking

CT Property Owners Alliance (CTPOA) Next Meeting: Dec. 9th

Tri-County Alliance of Realtors Next Meeting: Dec. 10th

Time: 6:00 PM - 10:00 PM Time: 6:00 PM - 10:00 PM

CT Real Es Investor (CTREIA

Next Meeting: Dec

Time: 5:45 PM - 9:0

Where: La Bella Vista 380 Farmwood Road, Waterbury, CT 06704

Where: Maneeley’s Banquet Where: Sheraton R 65 Rye Street 100 Capital Blvd. South Windows, CT 06074 Rocky Hill, CT 0606

Contact: 800-369-6153

Contact: 860-646-2450

Contact: 860-265-4

About: CTPOA and its sponsors invite you to a holiday party! Don’t miss out on good food, great fun and awesome networking opportunity as we celebrate the Holiday Season.

About: The Tri-County Alliance of Realtors 2021 Holiday Party! Come dressed to impress, 20’s theme of cocktail wear.

About: Ever wonde the real estate pros meet at CTREIA go start and how they m their living? Here’s chance!

Register Here!

Register here!

Come meet these g veterans and learn made their significa on the Connecticut estate market Register Here!


state rs A)

CT Real Estate Investors (CTREIA)

c. 13th

Next Meeting: Dec. 14th

00 PM

Time: 6:00 PM - 9:00 PM

Rocky Hill Where: Holiday Inn 1070 Main Street 67 Bridgeport, CT 06604

4414

Contact: 860-265-4414

er how s you ot their make your

About: Ever wonder how the real estate pros you meet at CTREIA got their start and how they make their living? Here’s your chance!

grizzled how they ant mark real

Come meet these grizzled veterans and learn how they made their significant mark on the Connecticut real estate market Register Here!

Have An Event Or Meeting You Want Advertised In Next Months Edition? Email Us the information and we’ll be glad to include it in the January edition of our E-Magazine!

Email: info@ctpoa.com Or give us a call: 800-369-6153


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 at info@ctpoa.com

ADVERTISE WITH US!

Becom

V

The Conne composed o REALTORS improve the bu

Follo


me a CTPOA Member!

Visit: https://ctpoa.com/

ecticut Property Owners Alliance is of experienced property managers, S and landlords working together to usiness conditions for rental property owners.

ow CTPOA: https://www.facebook.com/CTPOA/


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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