Housing Inventory Remain Low at the Start of 2023

By: Christine Stuart, with ctnewsjunkie.com

Connecticut lawmakers on three legislative committees tried to tackle the real estate market Tuesday during an informational session on home sales, affordability, and construction.

Jessica Lautz, chief economist and vice president of research for the National Association of REALTORS, told the Housing, Planning and Development and Insurance and Real Estate Committees, that there are only 3,600 homes for sale in all of Connecticut. That’s down from 17,000 homes for sale in 2017.

The median price for a single-family home has also increased from $235,000 in 2017 to $339,000 in 2022.

But Connecticut still remained more affordable than the Boston and New York metro areas driving in a small number of new state residents over the past two years.

However, with interest rates for a 30-year fixedrate mortgage at 6.3% things are very tough for first-time homebuyers.

The increase in the interest rates alone adds $700 per month to a mortgage payment and has pushed many, according to Lautz, into the rental market where rents are also up 20 to 30% “making it hard to afford a downpayment.”

Lautz said the lack of inventory is contributing to the problem.

Robert Dietz, chief economist and senior vice president for economics and housing policy at the National Association of Home Builders, said home building has been down since the Great Recession.

He said the cost of building a new single-family home has gone up 35 to 40% since the start of the pandemic.

Couple higher construction costs with higher home prices and a jump in mortgage interest rates and Dietz said it prices a lot of demand out of the market.

He said only 42% of new and existing home sales nationwide are considered affordable. He said migration may have increased slightly in Connecticut, but over a longer period of time it’s remained largely flat.

Dietz told the committee there are still supply chain problems and skilled labor issues that contribute to the decrease in inventory, but one of the biggest roadblocks has been regulatory costs.

Regulation costs $93,870 per new singlefamily home. He said whatever lawmakers can do to lower that cost will help grow the number of houses on the market.

He also warned against capping rents.

He said the rise in rents is a function of the lack of construction. He said rent control acts as a tax on supply and limits the solution which is construction.

When it comes to building Dietz said lawmakers have to be looking at building greater density housing and letting go of exclusionary zoning or aesthetic requirements.

Gov. Ned Lamont tackled the issue of housing in his Jan. 4 state-of-the-state address.

“

The biggest slam to our affordability and economic growth is housing, or the lack thereof,” Lamont said. “Every business thinking about moving or expanding repeats over and over, ‘Even if you had the workforce, there is no place for them to live.’ The answer cannot simply be more subsidies. Connecticut towns and cities, you tell us where developers can build more housing so more housing can be built faster, at less cost, and local control will determine how and where it is built.”

For lawmakers Tuesday there were no easy answers about how to get there.

7 Steps to Finding the Right Homeowners Insurance Policy and Mistakes to Avoid in the Process

By: Alani Asis, with businessinsider.com

Your home is probably the most expensive thing you own, so you want to have enough insurance to replace it in the worst-case scenario. Being underinsured, or signing with a company that can't pay claims, are mistakes you should avoid when shopping for homeowners insurance. However, many consumers overlook the importance of adequate coverage and quality customer service and instead focus on the lowest rates.

It is important to do your due diligence to find an insurer you trust and purchase coverage that fits your needs. By shopping around, you get the right coverage at a competitively priced premium. We'll take you step by step through what you need to know to do that.

Step 1: Figure out what you need covered

Start by determining the replacement cost of your home, the total value of your personal belongings, and the total value of your assets. You also want to consider covering additional structures such as garages or sheds and purchasing flood or earthquake insurance if you live in a high-risk area.

Step 2: Calculate how much coverage you need

Calculate the replacement cost of your dwelling: Local construction cost and you're home's size are two of the most significant factors affecting your home's replacement cost, according to the Insurance Information Institute (III). Factors such as your home's exterior and interior construction materials or other special features on your property like garages or a pool will also determine how much coverage you'll need.

There are several ways to estimate your dwelling's replacement cost. You can either get an estimate from your insurer or use a thirdparty replacement cost calculator. You can also hire an in-person appraiser, which may be more costly, or you can do it yourself by multiplying your local construction cost by the square footage of your home. Use multiple methods to get the most accurate replacement cost, which will ensure you're covered entirely.

• Perform a home inventory: Creating a detailed list of your possessions will help you assess how much you'll need in homeowners insurance. After recording your home's inventory, consider whether you'd like to insure your personal property for its actual value or replacement cost coverage. Take note of expensive items like jewelry or expensive electronics. If your inventory includes things that require more coverage, consider purchasing a personal property floater or endorsement.

• Figure out how much additional living expense insurance you'll need: Most policies cover you if you need to make alternative living arrangements while rebuilding your home after a claim. According to the III, the cost to pay for living expenses during repairs amounts to 20% of the home's replacement cost. Check with your insurer as additional living expense limits vary with each provider. You can increase this coverage at an extra charge.

Determine how much liability insurance you'llneed: You should purchase enough liability insurance to cover your assets. Most homeowners insurance policies have a minimum of $100,000, but consider having at least $300,000 to $500,000 of coverage, says the III. If that's not enough to cover your assets, consider purchasing an umbrella or excess liability coverage.

Step 3: Have your personal information and your home's information

Having your personal and home's information on hand can help you expedite gathering home insurance quotes.

1. Personal information: Name, date of birth, marital status, and contact information

2. Basic information about your home: Address, how long you've lived in your there, what type of home you reside in and if it's your primary residence, if there's a mortgage on the property, the year it was built, square footage, number of bedrooms/ bathrooms, number of stories

3. How your home was built: Material your building, exterior wall, and roof are made out of, heating or cooling systems, and the type of foundation and construction your home has

4. Safety: How far your home is from the nearest fire station and fire hydrant, if you have home safety systems

5. If you need extra coverage: Jewelry and high-end electronics, pets, swimming pools, or

Trampolines If You Operate A Business In Your Home

Step 4: Gather and compare home insurance quotes

The III recommends gathering quotes from at least three different companies. To begin your search, ask friends and relatives for recommendations. You can also contact your state insurance department to provide you with rates and complaint ratios of major insurers.

To compare quotes, know what's going into your policy's coverage to make the best applesto-apples comparison. A standard homeowners insurance will include dwelling, personal belongings, liability protection, and additional living expenses coverage. Ensure any additional coverage you opt to purchase is included in your quote.

You also want to check that your deductibles and coverage amounts are equal across all your quotes. A deductible is an amount you have to pay before your insurance provider delivers your claim. The lower your deductible is, the higher your premiums will be. Additionally, it's necessary to ensure your coverage amounts are the same across the board. You don't want to end up underinsured if you need to rebuild your home, replace your personal property, or get sued for accidents that occur on your property.

Step 5 : Look into discounts you qualify for

While it is important not to overlook your coverage for a lower rate on your homeowners insurance premiums, there are still ways to reduce your costs. Here are some of the popular discounts homeowners insurance offer:

• Multi-policy discounts: Receive a discount for bundling your homeowners insurance policy with another insurance product, usually auto insurance.

• New home/new home buyer discounts: If you're a new home buyer or just purchased a newly constructed home, you may qualify for a

• discount. What qualifies as a "new home" varies among insurance companies.

• Automatic, pay-in-full, electronic funds transfer, paperless discount: Get a discount for choosing a payment type.

• Claims-free discount: Receive a discount for having a clean record with your homeowners insurance.

• Loyalty discount: Your provider may offer a discount for being insured with them for a consecutive number of years.

• Home safety discount: You may be eligible for a discount if you have devices like burglar alarms or smoke detectors installed.

• Smoke-free discount: Non-smokers can get a discount for having a smoke-free household.

• Home improvement discount: Get a discount for upgrading your roof, electrical, heating, and plumbing systems to improve the quality of your home.

Step 6: Research the trustworthiness of each company

To ensure you get the best value, research the trustworthiness of an insurance provider. An insurer's financial strength, rated by independent agencies, can help you determine if it can compensate you for a claim when you need it. AM Best assigns insurance companies letter grades from A+ to F. If a company is rated anything below a B, it is not financially stable and cannot pay claims reliably.

You can also check a company's trustworthiness by looking at customer satisfaction. J.D. Power's home insurance customer satisfaction survey ranks major insurance companies based on a 1,000-point scale.

Step 7: Finalize and purchase your policy

Once you've selected the right policy for you, ensure all your information is correct before signing. Note that your insurance company may require a home inspection to make sure your application's replacement cost coverage and property information is accurate.

You also want to know how you will be paying your insurance premiums. You will usually pay your insurance premiums to your homeowners insurance provider or mortgage lender. You'll pay your premiums in full or in recurring payments through your homeowners insurance company. If you have a mortgage lender, you may have to pay premiums with your monthly mortgage payment through an escrow account.

Finally, you'll have to choose your policy's date. If you are purchasing a new policy, notify your mortgage lender.

Should Housing Providers Accepts Pets in their Rentals?

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

First, Housing Providers need to better understand the difference between a pet and an assistance animal. Per HUD, an assistance animal is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability. An assistance animal is NOT a pet.

For many years, special accommodation requests were abused by Pet Owners. On January 28, 2020 HUD provided Housing Providers, Pet Owners and Medical Providers additional guidance to help with this issue. The new HUD FHEO-2020-01 Assistance Animal Notice now requires Pet Owners to provide a connection between the disability and the need for the animal. Assistance animals must now fall within three HUD defined categories. Below are the categories and a brief description.

• Service – No proof needed, must have a disability and animal must be trained for a needed task. Only Dogs qualify for this category (except in CA).

• Support – Proof needed, must be for a disability related need, no-training required and domesticated animals only.

• Unique – Reasonable accommodation may be necessary when the need for a unique animal involves unique circumstances, such as task that can not be performed by a dog or allergies prevent the person from using a dog.

If the proper documentation is not provided to the Housing Provider, the request for the accommodation may be denied. Certificates, registrations, licensing documents from the internet are no longer sufficient documentation. Letters from a legitimate, licensed health care professional are reliable only if the professional has personal knowledge of the individual requesting the accommodation. HUD advised Medical Providers to provide in their accommodation letters information about their relationship with the patient, type of animal, disability related information and need for the animal.

Pets Equal More Profit

On average 60% of residents have a pet/ assistance animal. Of those households, only 9% are an assistance animal so 91% are traditional Pet Owners. With COVID it seems like many people became first time Pet Owners so that percentage will only increase. By not renting to Pet Owners, you are losing out on a large percentage of potential qualified applicants which may lead to longer vacancy time. Pet Owners are usually willing to pay more to have their pet which increases your revenue and tend to stay longer which decreases your turnover expense.

When considering the cost vs. the benefit of renting to a Pet Owner, you should consider ways you can mitigate the risk associated with pets. You can charge a pet fee based on the level of risk (charge more for a big dog than for a cat). You can charge the Pet Owner for a mid-lease pet inspection to catch any issues early. You can add into your lease fees associated with not cleaning up after their pet. You can require extra pet insurance to reduce your risk of the pet biting someone. As you can see there are many creative ways you can rent to Pet Owners in the future, while mitigating your risk and making a bigger profit.

Pet Screening Protection

Many Housing Providers do not have the time or the knowledge to accurately assess and document these type of accommodation requests. Professional Property Managers have access to an exclusive professional pet screening tool that was designed in accordance to HUDs guidance. This can take the stress out of the evaluation for the Housing Provider. Having a consistent Pet Policy and properly documenting the results of the screening will also reduce your risk of being sued for not following the appropriate reasonable accommodation laws for assistance animals.

In conclusion, know the current laws that protect Residents with assistance animals, follow the new HUD guidelines, hire a Professional Property Manager if you do not have the time to do the proper pet screening/ documentation and consider implementing pet policies that allow you to accept pets while reducing your risk and increasing the profitability of your investment.

With Rising Electricity Rates, Some CT Residents Turning to Third-Party Providers

By: Luther Turmelle, with ctinsider.com

The cost of electricity supplied to standard service customers of Eversource Energy and The United Illumiinating Co. has increased significantly since the beginning of the year, leaving consumers to wonder if there are any alternatives available to avoid the dramatic increase in their energy bills.

While consumers are often stuck with the supply fee, or the cost to bring electricity to a home or business, they can buy electricity from a thirdparty provider that are oftentimes lesser known but offer cheaper rates, at least at the outset. Depending upon a variety of factors, including when consumers made the switch and the terms of the offer they chose, residential customers of UI and Eversource who elected to go with a third-party provider are saving anywhere from 50 to 60 percent over the standard service rate from both utilities.

Taren O'Connor, a spokeswoman for the state's Public Utilities Regulatory Authority, said historically speaking, the supply component has accounted for 30-to-40 percent of customers electric bills.

"The ranges fluctuate because many of these costs are volumetric and depend on a customer’s individual usage, as well as the underlying rates, which are set at different times of the year," O'Connor said. "Because the supply rates that became effective on January 1, 2023, are so much higher than anything seen over the last decade, and because the components on the delivery side of the bill either stayed the same or decreased on Jan. 1, the percentage of the bill attributable to supply increased compared to historic norms. We are now seeing customer bills where the supply portion of the bill comprises between 50-to-60 percent of the total bill."

Purchasing electricity from a third-party provider isn't necessarily a one-size-fits-all proposition, said state Sen. Norman Needleman, D-Essex, who is co-chairman of the General Assembly's Energy and Technology committee. While they may seem like a good deal, they require close watching.

"Historically, the standard service rate has been a better deal," Needleman said. "I have friends with residential service who love playing the market, but for anyone who goes with a third party provider, they are going to have to pay attention to the terms of the contract."

Claire Coleman is Connecticut's Consumer Counsel and represents the interests of rate payers in proceedings before PURA. Coleman said "while there are clear savings opportunities, we caution that these are longer term rates being compared against rates that will change again in six months."

"You have to commit to re-comparing rates every time the standard service rate changes," she said. "Don't just set it and forget."

Consumers looking to switch to a third party provider can compare rates online. Coleman said once a switch is made, it takes going through a one moth's billing cycle before the changes takes effect.

Consumers have had the ability to purchase power from third party suppliers ever since Connecticut officials deregulated electric utilities in 2000. But the overwhelming majority of

Eversource and UI customers have elected to go with standard service, an option in which the utilities purchase electricity for their customers and then pass along the procurement cost without any mark up.

As of Dec. 31, only 9.7 percent or 124,528 of Eversource's 1.28 million customers purchased their electricity from third party providers, according to a company spokesman. As of the end of November 2022, 8.6 percent of UI's 341,000 customers had third-party electricity providers, according to data from the OCC.

Coleman said the incentive for more consumers to make the switch from standard service to a third party electric provider hasn't existed for years prior to this winter's price spike.

"Since polar vortex in 2015, the rates have been fairly stable and fairly low, so the standard service offer has been the more competitive of the two options," she said.

New data on the number of Eversource and UI customers using third party providers will be reported later this month.

Lon Seidman of Essex is a customer of Eversource Energy and he was among those who stuck with the standard service offer until shortly before the current rates took effect. Seidman now purchases the electricity he uses at home from Constellation Energy.

"In the past, I've seen whatever savings were made wiped out when the contract ended and they (third party providers) jacked up the rate,"

Seidman said. "So I just stopped shopping after awhile and stuck with the standard offer."

For anyone considering switching from standard service to a third party electric provider, Seidman said "the key things to look for are the length of the rate lock-in and what happens after the lock-in rate ends."

"Sometimes you can save some money especially if you're using a lot of electricity," he said.

Southington resident Matt Bacon said he doesn't see any negatives to using third party providers since Connecticut lawmakers approved the elimination of early termination for residential electric contracts during the 2021 legislative session. Long before the current spike in standard offer rates materialized, Bacon had locked in a rate of 10 cents per kilowatt in March 2022 for a period of 36 months.

"There isn't a risk if Eversource rates go back down," he said, referring to early termination rates being eliminated. " I feel lucky, my bill didn't change. Honestly, anyone who doesn't shop around for a better rate is leaving money on the table."

Both Coleman and Needleman said lawmakers and state utility regulators have refined the third-party provider process to make it more consumer friendly.

"The state of Connecticut has made it really difficult through policies that have been enacted to do damage to ratepayers," Needleman said.

In addition to the prohibition of cancelation fees that was enacted in 2021, Coleman said lawmakers and regulators have eliminated the ability of third party providers to offer variable rate electric contracts as well as teaser rates.

Winter Safety Tips for Your Home

From: portal.ct.gov

Indoor heat is an absolute necessity for the colder months in Connecticut. However there are simple ways to enjoy a warmer winter without spending excessively. Here are various different tips, information and recommendations to consider. Learn more about Winter Weather Awareness in Connecticut from the Department of Emergency Management and Homeland Security (DEMHS)

Home Improvement Energy Efficiency Hacks

Small adjustments can go a long way to improve the energy efficiency of your home. Here are several easy fixes to cut down on your energy usage.

1. Replace your furnace filter

If you use a forced air heating system, installing a clean filter can do wonders. A clogged or dirty filter may cause your heating system to do more work, which requires more energy. So, be sure to replace your filter every few months.

2. Seal your windows

Tiny openings and spaces between your window and wall frame may be allowing heat to escape. They could also bring in more cold air. To be sure, light an incense stick by your windows and see where the smoke goes. Or get a temperature sensor to check for cold spots around the frame.

Use spray foam insulation to seal and insulate your windows. Once applied, this substance expands to fill in small crevices perfectly.

3. Use window insulation film

Window insulation film reflects heat towards the room instead of allowing it to escape outside. It also creates another layer of insulation, almost like adding another window pane.

4. Add heavy drapes to your windows

Heavy fabric will further insulate your windows and indoor living spaces. This will help keep cold drafts out, while keeping heat inside.

5. Use a thermostat

A thermostat is a temperature regulating device that senses the temperature of your home. It makes adjustments to maintain at a desired temperature setpoint. You can also program your thermostat so that it properly heats your home at specific times of the day.

6. Switch the direction of your ceiling fan

In the winter, adjust your ceiling fan rotate in a clockwise direction to circulate warm air. In the summer, have it turn counterclockwise to circulate cooler air. To change the direction of the blades, flip a switch on the side of your fan.

Winter Safety For Your Home

1. Do NOT use gas or charcoal powered grills indoors. Grills generate carbon monoxide which is dangerous for your health.

2. Use electric space heaters with caution.

Small space heaters should not be placed near curtains or flammable materials. At night, when you go to bed, be sure to turn them off.

3. Keep the water in your pipes from freezing.

Frozen pipes can cause property damage and require repair. Turn on your faucets at a slight drip so that the water stays running. Also, you may want to put in the extra effort to insulate your pipes. If the water in your pipes do end up frozen, do not use a flame to thaw the ice. Use a hair dryer instead, or rags soaked in hot water as safer sources of heat.

4. Learn how to shut off your water valves.

In case a pipe in your house bursts, you will be able to shut off your water.

5. Have an emergency supply of wood for heat.

Never say never. Emergencies can happen. If your fuel supply is cut off, keep a supply of dry wood that is seasoned. You can then generate heat using a wood-burning stove or your fireplace.

6. Prepare for storms. Trim or cut large tree branches (and other structures) that could fall on your house. Also make sure to clear your rain gutters and fix any roof leaks.

Learn more about Extreme Cold Weather Storm Tips for a safer winter season.

Legal Tips for First Time Landlords

By: rocketlawyer.com

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

Put it in writing.

It seems simple but putting everything in writing can be the smartest thing you ever do as a landlord.

The most important item to put in writing is the Lease Agreement between you and the tenant. If you ever have problems with the tenant, the Lease Agreement protects you and gives you legal rights that would be more difficult to prove without documentation. It also makes it clear that both parties have agreed to specific terms that you can both reference later if there is a dispute.

Get a security deposit.

Collecting a security deposit communicates to the new tenant that you care about the condition in which the tenant keeps your property. It also gives the tenant motivation to keep the property in the same condition in which it was first rented. If the tenant doesn’t keep the property in good condition or damages it, you may be able to keep a portion or all of the deposit to pay for repairs or additional cleaning. Make sure you have the tenant fill out a Renter’s Inspection Worksheet when the tenant first moves in to reduce disputes about the initial condition of the apartment.

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

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

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

Understand the Tenant's rights, and your obligations to protect them.

Familiarize yourself with your state’s laws that protect the tenant’s rights, and any applicable city or county laws that might affect you. Consult the Hud.gov Tenant Rights resources by state to find out more about the laws in your area.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

As you may know, many lawyers and law firms charge every 15 minutes of work and for each question asked about your case. Such practices may lead to enormously expensive legal costs per case. At Reckmeyer & Reckmeyer, Law, you have more control over the cost of your case, while simultaneously being provided exceptional services. They never charge for consultations and you will not be billed for each court appearance by their Attorneys, as a flat rate price per case allows for a more simplistic and predictable legal experience for your company.

This group only works with landlords, which is hard to come by!

Contact them today!

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