In This Month’s Edition Pg. 06 - What Happens During a Connecticut Legislative Session?
Pg. 14 - Understanding the Section 8 Program as a Landlord in Connecticut
Pg. 10 - 10 Things NOT To Do When Filing an Insurance Claim!
Pg. 34 - The Importance of Reporting Payment History of Non-Paying Tenants
December 2023
Published by:
Table of Contents Publisher’s Message A Message From Bob DeCosmo, President Of CTPOA
News And Views From The Capitol What Happens During a Connecticut Legislative Session?
Realtor Report What It Takes To Own a Home in Connecticut
Insurance Insights 10 Things NOT To Do When Filing an Insurance Claim!
Property Management Tips & Tricks Understanding the Section 8 Program as a Landlord in Connecticut
Helping Property Owners Since 1994
Published by: CTPOA
Financially Speaking Understanding Asset Based Lending in the Real Estate Investment & Landlord Space
CTPOA’s Mission: Educate our members on the Best Practices.
Get Energy Efficient
Increase profitability.
Cozy Homes, Happy Tenants, Lower Bills: A Connecticut Landlord’s Guide to Winter Heating & Savings
Provide access to Core Services. Advocate for Property Owner Rights.
The Legal Corner Understanding PACs and Super PACs
Vendor Spotlight Energize Your Property: Unlocking Savings with Energy Efficiency Programs
Meet Our Team: Bob DeCosmo Carmine DeCosmo Melissa DeCosmo Paul Jenney
Chelsea Sayegh
Tenant Screening Tips & Tricks The Importance of Reporting Payment History of Non-Paying Tenants
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 Season and a Happy New Year. The past couple of years have been tough for some who lost friends and loved ones and every day the media outlets seem to repeat the same wretched dreadful news. The Holiday Season provides us with a great opportunity to reflect on all the happy
times we have experienced in the past and dream about what good fortunes are just around the corner. It’s the time of the year to take a step back and enjoy these memories and smile. If anything good ever came from Covid, it was teaching us the lesson that life is brief! Over the next few weeks, take some time and spend it with your family and 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. Go out and celebrate this year, you deserve it. Raise that glass and make a toast and have some cheer. Holidays are meant to be enjoyed and I hope everyone enjoys their Holidays this year.
04 / Publisher’s Message
Register at CTPOA.com/events
What Happens During a Connecticut Legislative Session? By: CTPOA As a real estate professional or landlord in
•
Short Session: This is a three-month
Connecticut, staying informed about the
session, from February to May in even-
legislative session is crucial. The decisions
numbered years when the legislators seek re
made during these sessions can significantly
-election to office.During this session, only
impact your business and the overall real estate
bills related to the budget and revenue can
landscape. In this blog, we'll break down the
be considered.
details of a legislative session in Connecticut, comparing long and short sessions and
What happens during a legislative session?
providing an easy-to-understand guide for real
The legislative session involves several key
estate professionals and landlords.
steps:
What is a legislative session?
•
that propose new laws or changes to existing
A legislative session is the period during which
laws.
the state legislature meets to debate and vote on bills. In Connecticut, the General Assembly
•
Regular Session: This is a six-month
•
considered during this session.
Committee Votes: Committees vote on whether to recommend passage of the bill.
session, from January to June. Typically, the most significant legislation is introduced and
Committee Hearings: Bills are assigned to committees for review and public hearings.
convenes for two sessions each year: •
Bill Introduction: Legislators introduce bills
•
Floor Debate: Bills approved by the committee are debated and voted on by the
06 / News & Views From The Capitol
the full House and Senate. •
•
bottom line.
Governor's Signature: If a bill is passed by both houses of the legislature, it is sent to
•
the governor for signature. •
of real estate development or rehabilitation
Law Enactment: Once the governor signs the
How does a long session differ from a short session?
projects. By understanding the legislative process and staying informed about the bills being considered, you can be prepared for any
The key difference between a long and short session is the scope of legislation that can be considered. As mentioned earlier, only budget and revenue-related bills can be introduced in a short session. In contrast, a long session allows for a broader range of legislation to be
changes that may impact your business. Here are some resources to help you stay informed about the Connecticut legislative session: •
considered, including bills on topics such as housing, education, and healthcare. In a long session, any legislator can introduce a Bill, but
•
Office of Legislative Research: https:// www.cga.ct.gov/olr/
•
legislation.
Connecticut General Assembly website: https://www.cga.ct.gov/
in a short session, only committees can propose
Connecticut Association of Realtors: https:// www.ctrealtors.com/
What does this mean for real estate
Understanding the legislative session in
professionals and landlords? Staying informed about the legislative session is crucial for real estate professionals and landlords. New laws can significantly impact your business, including:
•
Grants and incentives: The legislature may provide grants or incentives for specific types
bill, it becomes law.
•
Taxes: Changes in tax law can affect your
Connecticut is essential for real estate professionals and landlords. By staying informed about the bills being considered and how they may affect your business, you can be prepared
for any changes and take advantage of any
Regulations: New laws may introduce new
opportunities that may arise. As a CTPOA
regulations or restrictions on rental
member, we keep you informed and educated
properties.
on updates and urgent matters needing action. If
Changes in the landlord / Tenant statutes impacting anything from evictions to security
you’re not already a member, you can become one for only $99/year HERE.
deposits
07 / News & Views From The Capitol
What It Takes to Own a Home in Connecticut By: CTNewsJunkie Staff, with ctnewsjunkie.com Recent data from Redfin, a real estate
With the
brokerage, unveiled an escalating
average
challenge for homebuyers. As of now,
30-year
buying a median-priced home requires
fixed
an annual income of $114,627, an
mortgage
unprecedented 15% ($15,285) jump
rate
from the previous year, and a staggering peaking increase of over 50% since the
at 7.57%
pandemic’s onset.
– the
In the Hartford area that number drops slightly. Home buyers must make $94,640 to afford a $347,000 home. That’s 30.2% of their income or about $2,366 per month. In the New Haven area that number is $91,367 or 21.8% of their income for $2,284 per month on a $335,000 home.
08 / Realtor Report
highest in over two decades – and the typical home’s selling price reaching approximately $420,000 in August, the financial strain on homebuyers is palpable. Despite the dampening effect of surging mortgage rates on demand, the sustained rise in home prices, driven by a continued low inventory, poses significant challenges.
“In a homebuyer’s ideal world, rising
$40,000 from the necessary income to
mortgage rates would push demand
purchase a median-priced house. The
and home prices down enough to make disparity between wage growth and the up for high interest payments. But that’s soaring income required to buy a home not what’s happening now: Although
has widened, with hourly wages rising
new listings are ticking up slightly,
by a mere 5% over the past year.
inventory is still near record lows as homeowners hang onto their low mortgage rates – and that’s propping up prices,” Redfin Economics Research Lead Chen Zhao said in a press release. “Buyers–particularly first-timers – who are committed to getting into a home now should think outside the box. Consider a condo or townhouse, which
Inventory also plays a role. According to
the St. Louis Federal Reserve Bank there were only 4,184 listings available for sale in September. Only about 1,348 were available in Fairfield County. In August, building permits for new private housing were around 519, the latest month for which data is available.
are less expensive than a single-family
However, not all buyers face these
home, and/or consider moving to a
hurdles. Cash buyers remain insulated
more affordable part of the country, or a from the effects of high mortgage rates, and those selling their current homes more affordable suburb.” For context, the standard monthly mortgage payment for homebuyers has reached an all-time high of $2,866, a
can leverage their built-up equity to somewhat counterbalance the stinging monthly payments.
20% increase from the prior year. Back
In 50 out of 100 analyzed metros by
in August 2020, a typical monthly
Redfin, homebuyers must command at
payment was just $1,581, reflecting the least a six-figure income to purchase a median-priced home. The Bay Area in era of low mortgage rates and yet-tosoar home prices. The typical American household’s earnings fall short by approximately
California stands out as the most expensive, where homebuyers must earn a staggering $400,000 annually.
09 / Realtor Report
10 Things NOT To Do When Filing an Insurance Claim! By: Ranciato Public Adjusters Group 1. DON’T delay filing a claim. There are many factors that can affect your claim; delaying the filing of your claim is one. If you delay filing an insurance claim, the
typically know what is covered in their policy by either denying or underpaying your claims. If you have questions about what is covered ask your agent, attorney or public adjuster.
insurance company may not get a chance to
3. DON’T fail to prevent further damage to
see the real damage caused. You also risk the
your property.
damage worsening during the time you wait which can make a frustrating resolution and repair time. 2. DON’T forget to read your policy. Understanding what your policy covers is extremely important during the claims process. Read through your policy to understand your responsibility, coverage limits, perils insured against, endorsements and exclusions. If you fail to know and act on your responsibilities as the insured, this could cause your claim to be denied. Insurance company representatives do take advantage of the fact that insured’s don’t
10 / Insurance Insights
A major responsibility of yours as the insured is to prevent further damage. This includes stopping leaking water, tarping a roof, mitigating any water damage, boarding up windows and more. If you fail to comply with this part of the policy, portions of your claim
could be denied. Do not wait for your insurance representatives to come review damages or send a preferred vendor out. Do what you can to prevent further damage when the loss occurs and keep all receipts for reimbursement and parts for investigation purposes.
4. DON’T fail to document the damage. Take photos and videos. Keep all invoices and receipts. Document as much as possible to ensure you are capturing all the damage caused. Your insurance company won’t see every little thing. You are the only person there to document from the beginning to end. Even when your insurance company says they will compile a report with all damages, they may miss something that you know is there. Be sure to continuously document the damage and correspondence during the claim This includes presenting building damage reports, personal property reports, and repair process. This will also help if you must hire your own professional or end up in
remediation reports, additional living expense
court with your insurance company.
reports and more. Relying on any
5. DON’T be rushed into a settlement
professionals sent by the insurance company is a mistake. These professionals are
If your insurance company is offering you a
reviewing the damages with the insurance
check on the spot, be cautious. Take time to
companies’ financial interests in mind. Your
review all documents and damages. Don’t feel insurance company will hire any and all compelled to take the first offer, they typically
professionals they can to deny or underpay a
like to lowball and see where they can get
claim. We see engineers, construction
away with underpaying claims. If you are
consultants, electronics consultants etc.
unsure, ask a professional for consultation.
brought in on claims just to find a way to
Ranciato Public Adjuster’s provide free
underpay or deny a claim.
consultations and review of all documents.
7. DON’T start permanent repairs until
6. DON’T rely on their adjuster or any
your insurance company has agreed to all
other professionals they bring in to do the
damages.
right thing.
If you start making permanent repairs to your
Remember the adjuster sent to your home is
property, you no longer can justify the
there on behalf of the insurance company.
damage. If the insurance company doesn't
Your policy clearly states it is your duty to
agree on a portion of the damages and you
present your claim to the insurance company.
have already repaired the damage, even if
11 / Insurance Insights
you have photos, there is no guarantee they
no means to
will agree to repair or replace the damage.
guarantee you are
8. DON’T file too many claims You may think it is a good idea to file a claim,
satisfied and paying based on work performed. Our
but it is not always the best choice. If your claim suggestion is to get is under the deductible, you won’t collect a more than 1 quote payment and it will go against your “insurance score”. Yes, an insurance score is a real thing and filing too many claims will increase your premiums. Be sure what you are filing a claim for is worth the impact on your score. 9. DON’T be inclined to think you HAVE to use the insurance company’s preferred vendor.
from vendors.
10. DON’T be afraid to ask for professional help. Navigating an insurance claim is complex. Between your insurance policy, your duties as a policy holder, documenting damage, creating reports, reviewing reports and the repair process there is a lot to know and understand.
These are professionals brought in by your
Don’t be afraid to ask for help from a Public
insurance company. They are a preferred
Adjuster, we are the adjusters that handle the
vendor because they save the insurance
claim on your side. Ranciato Public Adjuster’s
company money by cutting corners and not
is 3 generations of adjusters who have been on
properly completing work. Most of the time they both sides of the insurance claim fields. Our require you to sign your claim funds over to adjusters are trained in all aspects of handling them before they even start work. This means
an insurance claim. We provide free
they will get paid whether they do the work
consultations to ensure your claim is handled in
correctly or don’t do the work at all. You have
your best interest.
12 / Insurance Insights
Understanding the Section 8 Program as a Landlord in Connecticut By: CTPOA The Section 8 Housing Choice
access to a wider pool of qualified
Voucher Program, is a federally
tenants while contributing to your
funded initiative administered locally
community's well-being. The program
by Public Housing Agencies (PHAs)
is also considered a “Lawful Source of
across the United States. The
Income” and renters with program
program is also administered by
vouchers are a protected class under
private contractors hired by the State
Connecticut’s Fair Housing Laws.
to run the programs in cities without Housing Authorities. This program helps low-income individuals and families find decent, safe, and affordable housing in the private market by providing rental assistance payments directly to landlords. As a landlord in
Do landlords in CT have to accept Section 8? While not universally required at the federal level, in Connecticut, landlords are legally obligated to accept Section 8 tenant applicants to apply for their units.
Connecticut, understanding the
Specifically, Connecticut's Fair
Section 8 program can offer you
Housing Center (CFHC) states that
14 / Property Management Tips & Tricks
landlords are obligated to accept
Benefits of Participating in Section
Section 8 vouchers if:
8:
•
•
•
The rental unit meets Housing
•
Quality Standards (HQS): This
PHA will directly pay a large portion
means the unit must be safe,
of your tenant's rent, ensuring
decent,and sanitary.
timely and reliable income.
The rent is reasonable: The rent
•
Reduced risk of vacancy: Section
charged to Section 8 tenants must
8 tenants are often highly motivated
be comparable to similar units in
to maintain their tenancy and
the area.
comply with lease terms, leading to longer tenancy periods and less
The landlord does not have a
vacancy downtime.
legitimate reason for rejecting the tenant: This means the
•
Guaranteed rent payments: The
•
Increased market reach:
landlord cannot reject the tenant
Participating in Section 8 expands
based on their participation in the
your potential tenant pool by
Section 8 program or any other
including low-income individuals
discriminatory factor.
and families who may not otherwise be able to afford your rental unit.
However landlords can screen applicants and tenants with
Program Requirements and
Section-8 certificates are not
Responsibilities:
screened by the agencies for being good tenants, just to determine if they are eligible for the voucher program,...LANDLORDS MUST SCREEN SECTION-8 TENANT APPLICANTS to check if they are a good risk to put in their property.
•
Unit Inspections: Participating units must meet the program's Housing Quality Standards (HQS) to ensure they are safe, decent, and sanitary. PHAs will conduct inspections before and during the
15 / Property Management Tips & Tricks
the tenancy. •
Rent Reasonableness: Rents charged to Section 8 tenants must be deemed
•
•
at (860) 240-4800. 2. Register your property: Complete the
reasonable by the PHA based on fair market
PHA's property registration form and
rents in your area. These “Fair Market
provide necessary documentation, including
Rents” are published on the HUD website
proof of ownership and insurance, rent
and updated annually.
history, and unit inspection reports.
Tenant Selection: You have the right to
3. Undergo a property inspection: A PHA
screen and select tenants who meet your
representative will inspect your unit to
leasing criteria
ensure it meets HQS standards. If the unit
Lease Agreement: You must enter into a standard lease agreement with your tenant, outlining the terms and conditions of the tenancy.
•
website or by calling the HUD Hartford office
Reporting: You are responsible for reporting any changes in rent, tenant income, or unit condition to the PHA.
How to Participate in Section 8: 1. Contact your local PHA: You can find contact information for your local PHA on the Connecticut Department of Housing
fails inspection, the tenant can not move in until it has been re-inspected and passes 4. Receive tenant applications: Once approved, the PHA will refer eligible Section 8 voucher holders to you. 5. Screen and select tenants: Review applications and select tenants who meet your leasing criteria and are approved by the PHA. 6. Enter into a lease agreement: Sign a standard lease agreement with your chosen tenant and submit a copy to the PHA.
16 / Property Management Tips & Tricks
Tenant Requirements: •
and ensure it complies with occupancy standards.
Income Eligibility: Tenants must meet income eligibility
Screening Process:
requirements based on their
•
household size and income. The
right to screen applicants based on
PHA will verify income through
your own criteria, including rental
various means like pay stubs, tax
history, creditworthiness, income
returns, and bank statements. •
verification, and references. We
Criminal Background Checks:
recommend a trustworthy
The PHA will conduct criminal
screening platform like
background checks on all adult
TenantTracks.
household members. Certain
•
offenses may disqualify a tenant
process, including income
limited in scope.
verification, criminal background
Credit History: The PHA may
checks, and verification of family
review credit reports as part of the
composition to determine if the
screening process, but adverse
tenant is eligible for the program.
credit history alone doesn't
•
automatically disqualify applicants. •
process, but the severity and circumstances will be evaluated. Family Composition: The PHA will verify the household composition
Joint Approval: Both you and the PHA must approve a tenant before
Eviction History: Past evictions may be considered in the screening
•
PHA Screening: The PHA will conduct their own screening
from participation but these are
•
Landlord Screening: You have the
they can move into your unit. Rejection Options: •
Failure to Meet Eligibility Requirements: If a tenant doesn't meet the PHA's income or other eligibility criteria, you can reject
17 / Property Management Tips & Tricks
their application. •
•
ensuring your rental unit is free of lead-
Negative Screening Results: If your own
based paint hazards. (CTPOA has a
screening reveals red flags, such as a
webinar on its website on lead paint that its
history of evictions or damage to previous
members can watch). If a Section-8 child
rentals, you can reject the application. •
lead level of 5 micrograms or more, the
obligated to accept any tenant you don't feel
landlord has 30 days to remediate the lead
comfortable with, even if they are approved
from the unit or the Section-8 rental
by the PHA. You can reject the application if
payment is cut-off.
terms.
•
Fair Housing Laws: You must comply with all fair housing laws and avoid
Your rent is higher than the rent the program
discrimination based on race, religion, color,
will pay. Tenants can not pay more for a rent
national origin, sex, disability, or familial
than the limit of the HUD Fair Market Rent,
status.
any side payments over the Fair Market
rents are not allowed and the tenant may be kicked off the program for doing so. Additional Considerations: •
under the age of 6 has an elevated blood
Unfavorable Lease Terms: You are not
you don't agree with the proposed lease
•
Lead-Based Paint: You are responsible for
Reasonable Accommodation: As a landlord, you are obligated to provide reasonable accommodation to tenants with disabilities.
•
Grievance Process: Both tenants and landlords have access to a grievance process if they have any unresolved issues related to the program.
Can you raise rent on Section 8 in CT? Yes, landlords can raise rent on Section 8 units in CT, but there are specific regulations and
18 / Property Management Tips & Tricks
procedures that must be followed. Here's what you need to know: Rent Increase Guidelines: •
After the initial 12-month contract: Landlords can request rent increases after the initial 12 months of the HAP (Housing Assistance Payment) contract.
•
Frequency: Rent increases can only be requested once every lease year.
•
•
Reasonableness: The proposed rent
Tenant's name and unit address
•
Current rent
•
Proposed rent increase amount
•
Effective date of the rent increase
3. The landlord must submit a copy of the completed form to both the tenant and the local PHA. 4. The tenant has the right to appeal the rent increase to the PHA.
increase must be reasonable and
Section 8 can be an overwhelming and
comparable to similar units in the area.
confusing part of owning and renting an
Notice: Landlords must provide written notice to both the tenant and the local Public Housing Authority (PHA) at least
•
•
investment property in Connecticut. Luckily, there are many resources to support you and answer your questions.
60 days before the proposed rent
Additional Resources:
increase date.
Connecticut Department of Housing -
PHA Approval: The PHA will review the
Section 8 Housing Choice Voucher Program:
proposed rent increase and determine if it https://portal.ct.gov/DOH/DOH/Programs/ Section-8-Housing-Choice-Voucher-Program is approved. The PHA considers factors like the condition of the unit, rental
HUD User: https://www.huduser.gov/portal/
market trends, and tenant income.
home.html
Procedures for Rent Increases:
Connecticut Fair Housing Center: https://
1. Landlords must use the Rent Increase
ctfairhousing.org/
form provided by the local PHA. 2. The form should include the following information: •
Landlord's name and contact information
19 / Property Management Tips & Tricks
Understanding Asset Based Lending in the Real Estate Investment & Landlord Space By: Joseph V. Scorese, National Sales Director with BrrrrLoans Asset-based lending is a form of credit used by
Businesses generally use these loans for two
businesses. It refers to a loan that is secured by
reasons:
the assets, meaning something of value, owned by the landlord. Companies typically use this to
shore up cash flow issues on a short-term basis. While individuals generally don’t use assetbased lending themselves, it is still helpful to understand how it works to aid in your assessment of companies when considering investments. What Is Asset-Based Lending?
First, a company might use asset-based lending to cover a short-term cash flow issue. For
example, a company that expects to collect significant payments from customers but currently needs cash to pay its bills might take out an asset-based loan. Second, a company might use asset-based lending to grow and make future investments if it currently has all its cash tied up. For example, a
An asset-based loan is a secured loan used by
company that just bought a new warehouse
businesses. In this case, the loan is secured by
might take out an asset-based loan to buy
the underlying physical or financial assets of the several new trucks to service that location. company. For example, a business might take
They’re in a strong position, but cash-light, so
out an asset-based loan secured by one of its
an asset-based loan can give them the money
buildings, its industrial equipment, sections of
to keep growing.
inventory or even payments due in accounts receivable.
20 / Financially Speaking
Asset-Based Lending In Real Estate Asset-based loans are relatively common in commercial and investment real estate. One of the features of some Real Estate Investors is that they tend to be property-heavy and cash-light. Buying real estate costs an enormous amount of money, so it’s common for a firm to spend that money on its next investment
property. This can frequently leave real estate firms’ cash-light when they need to pay bills or when they want to make a new purchase. To solve this cash-flow issue, real estate firms will often use asset-based loans backed by their real estate holdings. The loan can change based on the underlying value of the property involved.
Faster Processing, Closing, and Turnaround It typically takes far less time to close on a loan when using asset-based financing than it does with a traditional mortgage product from a bank or credit union. This results from less stringent
For example, a landlord might take out an asset-
underwriting guidelines, making it easier for the
based loan secured by the market value of a
underwriter to review the file in less time and
property they own. Or it might take out a loan
issue a final lending decision. Furthermore,
backed by the income of a rental unit. The sale-
private lenders have more leeway and aren’t
price of a property will typically generate lower
bound by the same restrictions as traditional
loan-to-value ratios since real estate sales are
lenders offering conventional loans and
illiquid. The cash flow of an income-generating
government-backed loans.
property will typically generate higher loan-tovalue ratios since this is highly liquid.
Regardless of the value, real estate firms have significant assets they can use to secure an asset-based loan. Advantages of Asset-Based Lending There are several benefits of using asset-based lending to grow your portfolio of rental properties.
Less Documentation and Paperwork You can also avoid mountains of paperwork and
financial documentation that you’ll otherwise need if applying for a traditional mortgage product. Low Down Payment Requirements It’s possible to get approved for an asset-based loan with a down payment as low as 20 percent. However, there are lenders that may be willing to
21 / Financially Speaking
loan 100 percent of the property value, but you’ll likely get less favorable terms, including a higher interest rate. Not Dependent on Personal or Business Assets As mentioned earlier, asset-based loans are based
you when applying for asset-based financing. The lender will likely request extensive documentation that outlines your plan to effectively manage and generate positive cash flow with the property.
on collateral and your company’s investment
Your investment objective, projected earnings and
strategy to generate more income. This means the
exit strategy play a significant role in the loan
amount of your personal or business assets isn’t
amount and terms you’re approved for.
necessarily a deal-breaker.
If you can effectively plead your case for a loan
Can You Use Asset-Based Lending for a Rental or
and submit all the required documentation
Investment Property?
promptly, it’s possible to get approved, closed and
Yes, you can use an asset-based loan to acquire a rental or investment property. It’s also commonly used for fix and flip properties that you only plan to keep for the short term.
funded in just one to two weeks. The Bottom Line An asset-based loan is a business loan secured by property, cash or other assets owned by the
How To Qualify for Asset-Based Lending for a
business. They are popular for Landlords, as these
Rental Property
loans can help a cash-light investor purchase new
Eligibility criteria vary by lender, but here are some
investment properties.
tips to keep in mind before applying:
Joseph V. Scorese 732-851-6900 | 215-290-5108
As mentioned earlier, the lender focuses on
National Sales Director
property values and not credit history when deciding if you qualify for a loan. So, working tirelessly to improve your credit score won’t help
BrrrrLoans
www.brrrr.com
36-38 West Main St, Suite 104, Freehold, NJ 07728
22 / Financially Speaking
jscorese@brrrloans.com
Cozy Homes, Happy Tenants, Lower Bills: A Connecticut Landlord’s Guide to Winter Heating & Savings By: CTPOA As the crisp autumn air gives way to frosty
and walls. Consider supplementing
mornings in Connecticut, landlords begin
existing insulation for optimal heat
to face a familiar challenge – keeping their
retention.
tenants warm and comfortable while minimizing heating costs. This delicate
•
inefficient windows and doors with
balance requires proactive planning and
energy-efficient models. This can be a
clever strategies.
significant investment, but the long-
Warm Up Your Wallet: •
•
term savings on heating bills can be substantial.
Seal the Deal: Conduct a thorough air sealing audit. Seal any leaks or gaps
Upgrade the Troops: Replace old,
•
Smart Thermostat Power: Install
around windows, doors,and utility
programmable or smart thermostats
penetrations. A little caulk can go a
that automatically adjust temperatures
long way in preventing costly drafts.
based on occupancy and preferred
Insulate Like a Pro: Ensure proper insulation levels in attics, crawl spaces,
24 / Get Energy Efficient
schedules. This simple upgrade can save you up to 10% on your heating bills.
•
Let the Sunshine In: Trim back
local rebates and incentives available to
overgrown trees and shrubs around the
landlords who implement energy-saving
property to allow maximum sunlight to
improvements in their rental properties.
enter windows during the day, providing natural heat and reducing reliance on artificial heating. •
Weatherize Together: Encourage tenants to participate in simple energysaving measures like turning off lights and electronics when not in use, using cold water for laundry, and adjusting their thermostats slightly during the day.
Creative Cost-Cutting Strategies: •
Group Power: Consider bulk-purchasing heating oil or propane with other landlords in your area to negotiate better
pricing. •
Alternative Energy: Explore renewable energy sources like solar or geothermal heating to reduce reliance on traditional fossil fuels.
•
Weatherproof the Outside: Ensure proper drainage around the property and clean gutters regularly to prevent ice
Beyond the Bills: Remember, a warm and comfortable home is not just about saving money. It's also about creating a happy and healthy living environment for your tenants. By investing in winterization and energy-saving strategies, you can ensure their comfort and improve your bottom line. Additional Resources: Eversource Energy Efficiency Programs: https://www.eversource.com/content/ residential/save-money-energy/energyefficiency-programs/income-eligible-home-
energy-solutions-ct CT.gov Weatherization Assistance: https:// portal.ct.gov/DEEP/Energy/Weatherization/ Weatherization-in-Connecticut Department of Energy Home Energy Saver: https://www.energystar.gov/ By implementing these strategies,
dams and water damage that can lead to Connecticut landlords can ensure their rental properties are cozy havens for costly repairs. •
Maintenance Matters: Regularly schedule maintenance for your heating system to ensure optimal efficiency and prevent potential breakdowns.
•
tenants, while keeping their wallets warm and happy all winter long. Remember, a little proactive planning can go a long way in creating a win-win situation for everyone involved.
Green Incentives: Investigate state and 25 / Get Energy Efficient
Understanding PACs and Super PACs By: CTPOA In the ever-evolving landscape of politics, understanding Political Action Committees (PACs) and their independent counterparts, Super PACs, is crucial for landlords and real estate professionals in Connecticut. These organizations can significantly impact legislation and elections, ultimately shaping the environment in which you operate your business within. PACs vs. Super PACs: Key Differences While both PACs and Super PACs aim to influence the political process, they operate under different rules and regulations:
Feature
PACs
Super PACs
Contribution Limits:
Lower limits for individual and group Unlimited contributions from contributions Individuals, corporations, and labor unions
Coordination:
Can coordinate directly with candidates and their campaigns
Spending:
Can spend money to support or op- Can spend money on independent pose candidates expenditures like ads and voter outreach
Transparency:
Required to disclose donors
26 / The Legal Corner
Prohibited from coordinating with candidates and their campaigns
Required to disclose donors
Types of PACs: •
Trade association PACs: Represent
Impact on Landlords and Real Estate
specific industries like the Connecticut
Professionals:
Association of Realtors or the Connecticut Apartment Association. •
candidates or ballot measures.
Single-issue PACs: Focus on single issues like property taxes or rent
PACs and Super PACs can significantly impact the real estate industry by: •
candidates' positions on issues
control. •
relevant to landlords and real estate
Leadership PACs: Formed by current or former elected officials to support their own political future or endorsed
professionals. •
to stricter contribution limits. •
taxes, rent control, and other industry-
Connected PACs: Directly affiliated with a candidate or officeholder, subject
Lobbying efforts: Shaping legislation and regulations that impact property
candidates. •
Campaign contributions: Influencing
specific issues. •
Public awareness campaigns: Swaying public opinion on issues that
Non-connected PACs: Independent of
affect the real estate market,potentially
any candidate or officeholder, with
influencing election outcomes.
more flexibility in fundraising and spending. Super PACs: A Growing Influence Super PACs have emerged as a powerful
force in recent years, wielding significant financial resources to influence elections
Engaging with PACs and Super PACs: Landlords and real estate professionals can engage with PACs and Super PACs in several ways: •
aligned with your interests.
and public opinion. While unable to directly coordinate with candidates, they can
Contribute financially: Support PACs
•
Volunteer time: Assist PACs with
spend unlimited funds on independent
fundraising, outreach, and other
expenditures, such as advertising
activities.
campaigns promoting or attacking specific
•
Stay informed: Track the activities of 27 / The Legal Corner
PACs and Super PACs to understand their stances on issues relevant to the industry. •
Advocate for your interests: Contact elected officials and express your concerns about legislation or policies negatively impacting your business.
•
Join industry associations: Participate in trade associations that actively engage with the political landscape and advocate for your interests.
PODL PAC Info In March of 2016 several concerned landlords came together to form a Political Action Committee (PAC) called the Property Owner Defense League – PAC to help
Understanding the differences and roles of
improve the political climate for property
PACs and Super PACs is essential for
owners.
landlords and real estate professionals in Connecticut. By actively engaging with the
political process and strategically utilizing available resources, you can ensure your voices are heard and your interests are protected in the legislative arena.
The sole purpose of the PAC is to influence the outcome of elections. The PAC was first established in Connecticut as an “Independent Expenditure PAC” meaning that it can have no direct coordination or communication with any candidate it
Connecticut has the Property Owners
supports or opposes, thus the name
Defense League specific to landlords and
Independent Expenditure.
we encourage you to get involved HERE. 28 / The Legal Corner
Energize Your Property: Unlocking Savings with Energy Efficiency Programs By: Eversource In the world of property ownership, every
habitability through adequate heating and
decision holds a key to unlocking savings
cooling systems, conducting maintenance
and the power to make a difference. When it on energy systems, and implementing comes to enhancing your property’s energy
energy efficiency upgrades. That’s where
efficiency, we have your back. Eversource, a our Multifamily Initiative comes in. proud Sponsor of Energize Connecticut SM, makes energy savings accessible and easy, regardless of property size. We can help you develop an energy-saving strategy, connect you with funding resources, and take advantage of multiple programs aimed at reducing energy consumption, increasing
property value, and become part of a more energy-efficient future.
The Multifamily Initiative takes a holistic approach to property enhancements, providing incentives, financing, and technical assistance to owners and managers of properties with five or more units. The program tailors solutions for both market rate and income eligible segments, addressing dwelling units, as well as common and exterior areas of the
While your tenants are responsible for
properties. Property owners and managers
paying utility bills, using energy wisely, and
can leverage the Multifamily Initiative to
promptly reporting issues with energy-
implement improvements in the building
related systems, property owners have
envelope, lighting, appliances, and heating
diverse duties, including ensuring property
and cooling systems.
30 / Vendor Spotlight
Studies show that every $1 dollar you
SAVINGS: The energy-saving
spend on energy efficiency can add up to
improvements can reduce energy use in
$10 in property value. To learn more about multifamily buildings by up to 30 percent the Multifamily Initiative and to get started
and improve tenant comfort. With incentive
on your property’s energy-saving
levels up to 90 percent of project cost in
upgrades, visit: EnergizeCT.com/
income eligible and up to 65 percent in
multifamily. For solutions for one-to-four-
market rate segments, the savings can be
unit multifamily properties, please visit:
substantial.
EnergizeCT.com/hes
Looking for more ways to help your
The Eversource Process: Easy and
tenants save on energy bills? Electricity
Effective
account holders have the power to make
We get it; you are busy managing your property. That's why we have made the process as straightforward as possible. Reduce energy use and operating costs
informed choices by comparing offers from licensed energy suppliers on Connecticut’s official generation Rate Board, available at EnergizeCT.com/Supplier.
by making your multifamily property
more comfortable and environmentally friendly. Eversource is here to help you with: FOCUS: We work with you to create a customized plan and find solutions to reach your energy savings, decarbonization and electrification goals. IMPLEMENTATION: Eversource provides support for the implementation of energy-saving measures, including guidance on financing and incentives.
31 / Vendor Spotlight
Energy Efficiency Case Study: The Mansions at Hockanum Crossing | Vernon, CT THE CHALLENGE: The Mansions at Hockanum Crossing is a community of 700 one- and two-bedroom luxury apartments. Originally, the apartments
had inefficient lighting and weren’t armed with the latest weatherization measures to keep up with the New England weather. Energy efficiency quickly became a top item on Hockanum Crossing’s amenity wish list. The key, though, was to make the energy-saving improvements while accommodating
•
High efficiency LED lighting
•
Building envelope improvements including air sealing and insulation
residential schedules across all 700 units.
around windows, doors, attic hatches and
THE EVERSOURCE SOLUTION: The Mansions at Hockanum Crossing received approximately $415,000 in Energize
ductwork •
ductwork
Connecticut incentives to help offset the upfront cost of upgrades, which included:
Sealing around heating and cooling
•
The energy improvements translated into monthly savings on bills, too.
32 / Vendor Spotlight
COST SAVINGS •
The upgrades are estimated to save each unit owner approximately $260 in annual energy savings, or $180,000 collectively
•
Save nearly $1.8 million over the next 20 years predicted use of the equipment and improvements
•
Defray the investment with nearly $415,000 in incentives
ENERGY SAVINGS •
6,000 tons of carbon dioxide (CO2) emissions avoided or,
•
2,800 tons of coal not burnt, or
•
1,300 cars taken off the roads for one year
WEBINAR ANNOUNCEMENT: January 16, 1pm: Discover the keys to energy savings, enhanced property value, and tenant comfort in our upcoming webinar as Natalia Sudyka from Eversource
shares valuable insights on optimizing energy efficiency for owners and managers of multifamily buildings. Sign up today. Registration coming soon!
33 / Vendor Spotlight
The Importance of Reporting Payment History of NonPaying Tenants By: Paul Jenney, Compliance Officer with TenantTracks Introduction: As a landlord or property manager,
prioritize rent payments and fulfil their
one of the critical aspects of running a
obligations, fostering a sense of
successful rental business is ensuring timely
responsibility and financial discipline.
rent payments from tenants. However, dealing with non-paying tenants can pose significant
•
Reporting non-paying tenants to the
challenges. It's crucial to establish effective
TenantTracks helps safeguard your interests
systems to address these situations promptly
as a landlord or property manager. It
and protect your financial interests. One
provides an objective record of tenants'
effective strategy is reporting the payment
payment behaviour, making it easier for you
history of non-paying tenants to TenantTracks. •
Protecting Your Interests as a Landlord:
to assess their creditworthiness when they
Ensuring Accountability and Encouraging
apply for future rentals. This information
Responsible Behaviour: By reporting the
allows you to make informed decisions and
payment history of non-paying tenants to
mitigate the risk of renting to individuals who
TenantTracks, you help hold individuals
have a history of non-payment especially as
accountable for their financial commitments.
the legislature wants to restrict eviction
It serves as a deterrent for future
records.
irresponsible behaviour, as tenants become aware that their actions can have long-term consequences on their creditworthiness. This practice encourages tenants to
•
Supporting the Rental Community: When non-paying tenants face consequences for their actions through tenant credit reporting, it benefits the rental community. By sharing
34 / Tenant Screening Tips & Tricks
accurate payment information, you contribute
Best Practices for Reporting Payment
to a fair and transparent rental market. Other
History:
landlords can make informed decisions based on tenants' credit history, reducing the
•
reporting payment history, familiarize
likelihood of renting to individuals with a track
yourself with relevant laws and regulations
record of non-payment. This practice helps
governing credit reporting in your
create a more reliable and accountable rental
jurisdiction. Ensure compliance with
environment. •
privacy laws, tenant rights, and any
Establishing Documentation for Legal Purposes: In some cases, reporting nonpaying tenants to the TenantTracks can
required disclosures or notifications. •
Use a Reliable Screening Agency: Select a reputable tenant screening agency that
provide valuable documentation for legal
specializes in tenant credit reporting.
proceedings. If the situation escalates and
Research and choose a reliable provider
you need to pursue legal action to recover
with a track record of accuracy, security,
unpaid rent or damages, having an official
and timely reporting. Obviously, we
record of the tenant's payment history can
recommend TenantTracks, but there are
strengthen your case. It serves as
other options, but having a central facility
evidence of their financial negligence and
for all CTPOA members to share
supports your claim in court. •
Comply with Legal Requirements: Before
information ensures consistency of
Encouraging Tenant Cooperation: When tenants understand that their payment history will be reported to TenantTracks,
reporting. •
Maintain Accurate Records: Maintain meticulous records of rent payments, lateill
they are more likely to cooperate in
help ensure the accuracy of the
resolving any outstanding payment issues.
information you report and provide
They may be motivated to work out
valuable suppor payments, and any
payment plans, communicate their
communication regarding non-payment.
difficulties, or seek financial assistance to
Clear documentation wt in case of
avoid negative credit consequences. This
disputes.
practice promotes open dialogue between •
landlords and tenants and fosters a
Adhere to Dispute Resolution Processes:
collaborative approach to addressing
If a tenant disputes the accuracy of the
financial challenges.
reported payment information, follow the
35 / Tenant Screening Tips & Tricks
proper dispute resolution processes
more responsible and transparent rental
outlined by the screening agency. Promptly
community. There is also NO COST to
investigate and resolve any legitimate
report data in.
concerns to maintain the integrity of the reported data. •
Notify Tenants of Reporting Policy: Clearly communicate your policy regarding the reporting of payment history to tenants. Include this information in the lease agreement and make sure tenants understand the potential consequences of non-payment on their credit scores. Transparency and
By following the best practices outlined above, you can establish effective systems that foster financial responsibility,
encourage cooperation, and maintain the integrity of your rental business and prevent legislators from taking away your most effective screening tool, your and other owners' and managers' experiences with the tenant.
upfront communication can encourage timely payments and minimize misunderstandings. Reporting the payment history of nonpaying tenants to TenantTracks is a vital practice for landlords and property
Know Who You Are Renting To
managers. It ensures accountability,
www.tenanttracks.com
protects your interests, and contributes to a
36 / Tenant Screening Tips & Tricks
For More Information Visit Our Website: landlordcollections.net Give Us A Call: (800)-369-6153
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 2023 Sun
Mon
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Wed
Thu
Fri
Sat
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GHAR
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CTREIA
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NEI
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Events & Meetings & Networking
Connecticut Property Owners Alliance (CTPOA)
Eastern CT Association of Realtors (ECAR)
Greater Hartfo Association Realtors (GHAR)
Next Meeting: Dec. 13th
Next Meeting: Dec. 13th
Next Meeting: Dec. 1
Time: 1:00 PM
Time: 6:00 PM - 8:00 PM
Time: 5:00 PM
Where: Zoom
Where: Fat Tuna 378 Rope Ferry Road Waterford, CT 06385
Where: Salt 2.0 84 Main Street Torrington, CT 06790
Contact: (800) 369-6153
About: Dana Serra, Director Contact: (860) 892-2595 of Leased Housing Programs, has dedicated 30 About: Join our YPN for an years to the Housing Ugly Sweater Contest and Authority of the City of Toy Drive at the beautiful Waterbury. She possesses Fat Tuna in Waterford. extensive knowledge of There will be appetizers, Section 8 and Public cash bar, and the option to Housing regulations, as purchase more delicious evidenced by her PHM food. certification and various Register here! other credentials. •
Stricter Inspection Regulations
•
Fair Market Rent Contract Calculation
•
The Paperwork Process
•
Live Q&A & More!
Register here!
Contact: (860) 561-18
About: Join Litchfield County Chapter for a holiday mingle happy hour. Light appetizers provided thanks to our sponsor, Torrington Sa Bank. Bring a guest! C bar and enjoy the follo light appetizers: chees crackers, veggies, chi salsa, Caeser pinwhee kale and spinach dum and fried cauliflower. Register here!
ord of
14th
800
Connecticut Real Estate Investors Association (CTREIA)
Connecticut Real Estate Investors Association (CTREIA)
The NEI Real Estate Investor Meetup (NEI)
Next Meeting: Dec. 18th
Next Meeting: Dec. 19th
Next Meeting: Dec. 21st
Time: 5:30 PM - 9:00 PM
Time: 5:30 PM - 9:00 PM
Time: 6:00 PM - 9:00 PM
Where: Aqua Turf Club 556 Mulberry Street Plantsville, CT 06479
Where: Aqua Turf Club 556 Mulberry Street Plantsville, CT 06479
Where: Back Nine Tavern 245 Hartford Road New Britain, CT 06053
Contact: (860) 265-4414
Contact: (860) 265-4414
Contact: (203) 915-3803
About: Join us for an amazing About: It's BACK! The About: Join us for the NEI night of dinner, cocktails as well CTREIA Annual HOLIDAY Real Estate Investor as supporting a great causeCELEBRATION & ...CAMP Meetup's final event of the s are Camp Courant!. Let's all get COURANT FUNDRAISER! year! We're bringing back r dressed up and have a ball guest speakers from 2023 avings celebrating another year behind • 5th Largest REIA in to share insights on the America...because of Cash us and looking forward to 2024. year's key developments YOU! owing and their predictions for Register here! se, real estate in 2024. • An Incredible Evening of ips, Connect with fellow Friends, Family & els, investors, gain valuable Festive Fun...and mplings, knowledge, and set the Fundraising! stage for a successful 2024. Register here!
Register here!
Name
Contact
Service
BestWay Mortgage, Brandon Parenti
Phone: (203) 441-4059
Mortgages & Loans
Website: Click here!
(Professional Services)
Pro Property Management
Phone: (203) 909-6333
Property Management Services
Website: Click here!
(Professional Services) The Law Office of Yona Gregory
Phone: (860) 443-9662
Attorney / Evictions
Website: Click here!
(Professional Services)
The Brodrick Law Firm
Phone: (203) 758-8822
Attorney / R.E. Closings
Website: Click here!
(Professional Services)
Phone: (888) 610-4710
Tenant Screening
Website: Click here!
(Professional Services)
Tammy Enquist Canfield: Comparion Insurance Agency
Phone: (203) 695-3893
Insurance
Website: Click here!
(Professional Services)
ServiceMaster Restore by Recovery Solution
Phone: (860) 735-4704
Restoration
Website: Click here!
(Maintenance & Tradesmen)
Eversource Energy
Phone: (800) 592-2000 Website: Click here!
Energy Efficiency Provider (Suppliers & Wholesalers)
Phone: (720) 706-8902
Rental Insurance
Website: Click here!
(Professional Services)
TenantTracks
The Guarantors
Premier Real Estate Investment Group
Phone: (860) 335-0681
Cesar L. Sousa, Real Estate Attorney
Phone: (203) 583-8299
Real Estate Multi-Family
(Professional Services)
Website: Click here!
Attorney / Personal Injury (Professional Services)
PosiGen
Phone: (866) 767-4436 Website: Click here!
Solar Panels/Green Energy (Maintenance & Tradesmen)
Pet Screening
Website: Click here!
Tenant Screening (Professional Services)
Nick Minicucci: New England Residential Finance, LLC
Phone: (203) 509-2717
Mortgages & Loans
Website: Click here!
(Professional Services)
Landlord Collection Agency
Phone: (800) 369-6153
Collection Agency
Website: Click here!
(Professional Services)
Junk Bear
Phone: (860) 378-2801
Rubbish & Hauling
Website: Click here!
(Maintenance & Tradesmen)
First World Mortgage: Jesus A. Carrero
Phone: (203) 715-0961
Mortgages & Loans
Website: Click here!
(Professional Services)
The Miranda Team Home Inspections
Phone: (203) 490-7855
Home Inspections
Website: Click here!
(Professional Services)
Name
Contact
Service
Marion Szarzynski, HomeBridge Mortgage Loan Originator
Phone: (203) 768-5098
Mortgages & Loans
Website: Click here!
(Professional Services)
Brenda Tate, Photographer
Phone: (860) 631-7622
Real Estate Photography
Website: Click here!
(Professional Services)
Jeff Zappone, Loan Officer at CrossCountry Mortgage
Phone: (203) 592-3602
Mortgages & Loans
Website: Click here!
(Professional Services)
Dawn Cabral, Broker/ Owner, GRI, SRES at West View Properties LLC
Phone: (203) 228-7564
Real Estate Residential
Website: Click here!
(Professional Services)
Dana M Guiliano
Phone: (203) 419-5857
Attorney / Evictions
(Professional Services)
Venoal M. Fountain, Jr., Partner at Hirsch, Levy & Fountain, LLC
Phone: (203) 336-3144
Attorney / Evictions
Website: Click here!
(Professional Services)
Attorney Emanuele A. Mangiafico
Phone: (860) 827-8064
Attorney / R.E. Closings
Website: Click here!
(Professional Services)
Reckmeyer & Reckmeyer, Law
Phone: (860) 333-5677
Attorney / Evictions
Website: Click here!
(Professional Services)
Ranciato Public Adjusters Group, LLC
Phone: (888) 298-9014
Public Adjuster
Website: Click here!
(Professional Services)
Name
Contact
Service
BRRRR Loans
Phone: (215) 290-5108
Mortgages & Loans
Website: Click here!
(Professional Services)
Phone: (860) 956-6825
Property Management Services
Ironclad Property Management
Website: Click here!
(Professional Services)
About the CTPOA Vendor Program Let the Connecticut Property Owners Alliance help promote your business to the Real Estate and Property Owner community through our Vendor Affiliate Member Program! Your company will be listed in our priority vendor database for all CTPOA members. Our events will allow you to display your promotional materials on our vendor tables, interaction with prospective customers and grow your presence on social media. CTPOA makes it easy for you to gain more customers without spending valuable time searching for them.
To sign up to be a CTPOA Vendor, click here!
P. (800)369-6153
F. (888)900-9773
E. info@ctpoa.com
www.ctpoa.com
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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.