CT Real Estate Today - January 2022 Edition

In This Month’s Edition Legal Tips For First Time Landlords

Seven Real Estate Investing Tips For Beginners

Eight Tips For Buying Homeowners Insurance

Why Is Tenant Screening So Important?

January 2022

Published by:

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

News And Views From The Capitol New Laws Went Into Effect Jan. 1; Here’s What You Need To Know

Realtor Report New Laws Effective January 1 Concerning Real Estate

Insurance Insights Eight Tips For Buying Homeowners Insurance

Property Management Tips & Tricks 5 Property Management New Year Resolutions That Make Your Investments Worthwhile

Helping Property Owners Since 1994

Published by: CTPOA

Financially Speaking 4 Real Estate Trends Smart Investors Are Watching For 2022

Get Energy Efficient Energy Saving Tips For Winter

The Legal Corner Legal Tips For First Time Landlords

Vendor Spotlight

CTPOA’s Mission: Educate our members on the Best Practices.

Increase profitability.

Provide access to Core Services.

Advocate for Property Owner Rights.

Meet Our Team:

Let Us Bear Your Junk!

Bob DeCosmo

The Intelligent Investor Seven Real Estate Investing Tips For Beginners

Carmine DeCosmo Melissa DeCosmo Paul Jenney

Chelsea Sayegh

Tenant Screening Tips & Tricks Why Is Tenant Screening Important?

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

By Bob DeCosmo Advocate For Property Owner Rights Another year has come and gone. We’re excited to see what 2022 has to offer but we believe it will continue to be an uphill fight to be a landlord in Connecticut.

Starting in January a new program will be starting in areas of our state with the highest eviction rates that will provide free legal representation for low-income renters facing evictions. Landlords will of course be forced to pay for their own legal council regardless of the circumstances of the eviction...

It should be another interesting year and CTPOA looks forward to help

educate and bring together realtors, landlords and property owners alike. We hope everyone had a happy, healthy and safe holiday and we are excited to see you all at future events this year!

Happy New Year!

Bob DeCosmo

04 / Publisher’s Message

05 / Publisher’s Message

New Laws Went Into Effect Jan. 1; Here’s What You Need To Know By: Caitlin Burke, with wtnh.com A handful of new state laws went into effect on Jan. 1, starting with the paid family and medical leave law.

With the start of the new year, workers can begin receiving up to 12 weeks of paid time off to care for their own health, a newborn, or a sick family member.

Out-of-pocket costs for insulin will also now be limited to $25 a month. In the meantime, the out-of-pocket expenses for equipment and supplies, like glucose test strips and insulin syringes, will be limited to $100 a month.

House Minority Leader Vin Candelora says there are many benefits to the new laws this year.

“We have a lot of different laws going into effect that might improve people’s lives. I think everyone is sort of looking forward and saying how do we function coming out of this pandemic and what services are we going to need to improve whether it be educational, behavioral health, or mental health services for our kids and our adults,” Candelora said.

For a full list of new laws, click here.

06 / News & Views From The Capitol

New Laws Effective January 1 Concerning Real Estate From the CT State Website AN ACT CONCERNING LICENSING

Under the act, teams must register with DCP in a

REQUIREMENTS FOR REAL ESTATE

form and manner the commissioner prescribes.

BROKERS, SALESPERSONS AND TEAMS

Initial registrations are valid for one year and

SUMMARY: This act increases the minimum prior work experience required to apply for a real

estate broker’s license on or after January 1, 2022. Principally, it requires applicants to have a minimum number of hours worked and real estate transactions closed in the prior three years.

The act also establishes a registration process for real estate “teams,” which are groups of at least two licensed real estate brokers, or salespeople affiliated with the same sponsoring broker, that advertise using a team name. It allows the Department of Consumer Protection (DCP) commissioner, in her discretion, to engage third parties to implement the team registration process; however, it prohibits her from spending state funds to hire consultants to make program changes to the licensing system.

08 / Realtor Report

cost $565. Teams may apply for one-year renewals for $375.

The act also makes technical changes.

REAL ESTATE BROKER MINIMUM EXPERIENCE AND EDUCATION REQUIREMENTS The act requires a broker license applicant, before sitting for the written licensure exam, to meet the act’s expanded experience requirements in addition to existing law’s

education requirements. However, by law and unchanged by the act, the Connecticut Real Estate Commission or the DCP commissioner may waive all of these requirements if the applicant is found to have equivalent experience or education.

Under the act, in the three years prior to

estate salesperson who is a team member or

applying, an applicant must have:

(2) be immediately followed by “at/of” and the

1. been actively engaged as a licensed real estate salesperson under a Connecticutlicensed real estate broker’s supervision for at least 1,500 hours and

full name of the sponsoring real estate broker.

The act prohibits team names from including (1) any abbreviation, term, or phrase that implies the team is a business entity (e.g., “LLC” or “company”) or (2) the name of anyone

2. represented a seller, buyer, lessor, or lessee who is not a licensed real estate broker or in at least four closed real estate transactions. salesperson.

Under prior law, an applicant had to be actively The act requires teams to notify DCP about any engaged as a licensed real estate salesperson changes to registration information within 12 under the supervision of a Connecticut-licensed days after the date of the change in a form and real estate broker for at least two years. manner the commissioner prescribes.

The act requires the supervising broker or his

Additionally, the act requires teams to pay DCP

or her authorized representative to certify

a $25 fee for any change made to, or transfer

whether an applicant’s active engagement

of, a team’s registration after the initial

meets the hourly experience requirement within registration is filed.

90 days after the applicant provides it to him or

The act requires teams to include the name of

her.

the team’s sponsoring real estate broker

REAL ESTATE TEAMS

prominently in all of their advertisements and

Under the act, real estate team registrations must include the name and contact information for each team member, including the name and contact information for the team’s sponsoring real estate broker. The sponsoring licensed

comply with all advertising requirements and standards that apply to real estate brokers.

Among other things, these requirements and standards: 1. prohibit misrepresenting or concealing any

real estate broker serves as the team’s primary material facts in any transaction

contact and must ensure it (1) complies with all 2. prohibit misrepresenting the price of real existing real estate advertising laws and estate, and regulations and (2) accurately and timely files registration forms and updates.

Registrations must also include the team’s

3. establish minimum disclosure requirements for advertising on websites (Conn. Agencies Regs. § 20-328-5a).

name, which must (1) include the full name of at least one licensed real estate broker or real

09 / Realtor Report

Eight Tips For Buying Homeowners Insurance By: Michele Lerner, with washingtonpost.com People purchasing their first homes represented 31

Buyers should start looking for a home insurance

percent of all buyers in September, according to the provider as soon as they have a contract accepted National Association of Realtors. Among the many steps in the process is purchasing homeowner’s insurance.

to buy a home.

“Most mortgage companies require proof of insurance before closing,” wrote Bill Gatewood,

“Home buyers — especially first-time home buyers

corporate vice president at insurance

— often don’t think about budgeting for home

brokerage Burns & Wilcox in Detroit. “Homeowners

insurance when looking for their dream home, but

should begin shopping around at least 30 days prior

they should,” Sean Harper, co-founder and CEO

to closing — waiting until the last minute can delay

of Kin Insurance in Chicago wrote in an email.

the process.”

“Where you live can have an enormous impact on

Many first-time buyers will often go with whatever

your home insurance rates,” Harper added. “For

home insurance company their real estate agent

example, homeowners near open space in

recommends, but that isn’t the way to get the best

California and on the coast of Florida are more

price or necessarily the best coverage, Harper

exposed to extreme weather (like wildfires and

wrote. Try

hurricanes, respectively), and insurance in these

these tips to

areas will usually cost more because of it. Home

make a wise

buyers should also be aware of local flood

decision

disclosures laws when buying a house in a flood

about your

zone. You’ll want to know if flood insurance is required for the property and whether the home has experienced any flood damage in the past.”

10 / Insurance Insights

1. Go online and get some quotes. Make sure

according to Gatewood. “People in natural

you’re comparing apples to apples when

disaster catastrophe zones should also do all they

assessing your options — some policies may offer can to protect their homes before disaster strikes, substantially more coverage, Harper wrote.

2. Know what your policy does and doesn’t cover. Homeowners insurance protects against most common exposures like water damage, electrical fires and roof leaks, but maintenance issues like mold and pest infestations usually aren’t covered, according to Gatewood. “You may

such as clearing brush from around their property, installing impact-resistant doors and windows and using noncombustible landscaping,” Gatewood wrote. In addition, Harper wrote, insurance companies may give you a discount for making your home safer, such as investing in wind mitigation in Florida.

need special coverage for items like fine art, a

6. Look for discounts. While there are common

wine collection or antiques that typically aren’t

home insurance discounts, they aren’t

covered either,” Gatewood wrote.

standardized across the industry, Harper wrote.

3. Check the insurance company’s rating. A rating is an independent assessment, usually by AM Best or Demotech, of the company’s financial standing, according to Harper. “A good rating

Most companies offer at least a 5 percent discount for security systems. Water mitigation systems like automatic water shut-off valves and leak sensors can qualify for discounts, too.

means the company can meet its claim obligations 7. Add liability protection. Every homeowner even after a widespread disaster,” Harper wrote.

4. Pick a high enough deductible. When selecting an insurance policy, homeowners need to make sure they’re covered in the wake of a catastrophe that could fully wipe out their home and belongings, wrote Gatewood, but to save money, buyers should choose as a high a deductible as

should have at least $100,000 in personal liability coverage, enough to cover common claims like a slip and fall accident on the property. “If you have a swimming pool or have a high net worth and could be a target for frivolous lawsuits, it may make sense to increase your liability coverage above that minimum,” Harper wrote.

they can afford. Gatewood recommends choosing

8. Don’t forget to buy enough loss of use

a deductible of $2,500 and filing a claim only for

coverage. Coverage for your living expenses, if

something worth more than that amount. Harper

you must relocate while your home is being

wrote that buyers should make sure they budget

repaired, is part of most standard homeowner

for their deductible, in case they have a claim, and insurance policies. “We typically suggest that to have an emergency fund that also covers small

homeowners have about 20 percent of their

repairs that cost less than the deductible.

dwelling coverage in loss of use (also known as

5. Check out additional protections. Depending on their location, homeowners need to make sure they have adequate coverage for severe weather

additional living expenses) coverage,” Harper wrote. “So, if your home is insured for $300,000, you’d have $60,000 in loss of use coverage.”

disasters such as wildfires, hurricanes and floods, which sometimes require an additional policy,

11 / Insurance Insights

5 Property Management New Year Resolutions That Make Your Investments Worthwhile By: Classic Property Management It’s officially the time of the year where people

Even if you feel you aren’t tech-savvy enough

begin to make resolutions to improve their lives

to build out a portal on your own, there are

over the next 365 days. Although most

plenty of reliable Dallas-Fort Worth property

resolutions like weight loss and general life

management teams that come equipped with

organization are important, there are several

the technology you need to upgrade your rental

resolutions a property manager can make that

experience in 2022.

should be held up through the next year and future years to come.

If you are an owner of one or more rental properties, here are 5 new year resolutions you should hold true to, in order to make your investment worthwhile in the end.

Create a Maintenance Schedule and Stick to It Emergency repairs due to lack of maintenance time can be costly on your budget and an inconvenience to your renters. This year, buck the trend of scrambling to manage

Don’t Be Afraid to Work With New

unmanageable maintenance. Create a

Technology for Rent

schedule that works for your team and stick to it

Online portals are the latest and greatest trend

all year long.

in the property management industry. If you are Something as simple as a regular maintenance a solo manager, don’t be afraid to upgrade to

schedule can keep your properties looking their

an online portal system that makes renter’s

best, reduce the chances of emergency repairs,

payments and your review of late payments as

and maintain renter happiness while living on

simple as the click of a button.

your property.

12 / Property Management Tools & Tips

Get Personal With Contractors

stone unturned

Even if you settle into an excellent

Once you put effort into a clear marketing

maintenance schedule, life happens, and

campaign, your desired renters will quickly

you’ll need the best contractors on your

see the value in renting on your property

side. If you know some of your vendors

and start sending in applications.

are moving on or no longer offer the quality services you deserve, spend some time this year researching the best

Communicate to Retain Your Best Renters

contractors in your area and creating

some professional relationships with the vendors you want to work with when an emergency arises.

This can be a daunting task when managing alone. However, when you work with a local property management

Great renters don’t want a landlord that is

company to accomplish your goals,

only available when rent is due. Your

excellent vendor resources often fall right

renters may have questions or concerns

into your lap.

that arise throughout the year, and you

Maximize Your Marketing Potential

need to be there to address them, no

Make this the year that you reel in the best renters for your properties. Finding the

matter the severity.

Whether you open yourself up to after-

right renters is all about the marketing that hour requests or team up with a property management company that can do the you put behind your search. personable communicating for you; as

Take some time this year to: •

long as your renters get the

Truly research your target audience’s

desires •

remain confident in your abilities as a

Schedule professional photos for your

landlord and are more likely to renew their lease for years to come.

marketing campaign •

communication they deserve, they’ll

Create a detailed listing that leaves no

13 / Property Management Tools & Tips

4 Real Estate Trends Smart Investors Are Watching For 2022 By: Courtney Carlsen, from fool.com The past couple of years have been anything

which recently came in at a 6.8% annual rate in

but ordinary for real estate investments. Last

November, the highest since 1982. At the same

year, in response to the COVID-19 pandemic

time, the unemployment rate has dropped

slowdown, the Federal Reserve slashed

drastically -- down to 4.2% as of November.

interest rates to record lows and mortgage rates followed. Many mortgage-finance companies felt the tailwinds from these low rates, and customers responded by refinancing their mortgages at a record pace.

Because of the recovery in jobs and accelerating inflation, the Fed has said it will taper its purchases of assets used to stimulate the economy sooner than it expected. Investors are also anticipating more rate increases than

Now, accelerating inflation has caused the Fed

previously thought earlier in the year. Bank of

to shift course, which could have a sizable

America forecasts two rate hikes in 2022 and

impact on real estate and mortgage-finance

three more in 2023 and 2024.

companies. Here are four trends in real estate that smart investors are keeping a close eye on going into 2022.

1. Mortgage rates will rise Economists expect mortgage rates to rise as the Fed tightens monetary policy. The Fed has decided it needs to respond to rising inflation,

14 / Financially Speaking

These expected rate increases will boost mortgage rates as a result. According to Fannie Mae's Economic and Strategic Research Group, mortgage rates will average 3.3% in 2022, up from today's rate of 2.99%.

Meanwhile, Mortgage Bankers Association (MBA) researchers expect interest rates to rise to 4% on 30-year fixed loans next year.

2. Origination volume will decline

houses available to the lowest levels since the

drastically

1970s. Goldman says that a supply-demand

Mortgage lenders don't love rate hikes because they ultimately lead to a slump in

imbalance will lead to a multiyear boom for homebuilding.

business. When rates go down, people buy

The firm expects states to deregulate land

houses or refinance their current homes to

usage, which should help accelerate

lock in those low rates. That is what we saw

construction activity. It expects homebuilding

play out last year and into 2021.

to increase the housing supply by 1.65 million

When rates begin moving higher, mortgage

lending slows, which is what MBA is projecting for 2022. The MBA expects total loan originations to drop 33% next year from 2021, to $2.59 trillion. This decline will hit

annually. When considering demolitions, net

supply is forecast to increase by 1.4 million.

The persistent demand-supply imbalance could prove favorable to homebuilder stocks such as D.R.

refinance originations the most, which the

4. Home prices will continue to rise, but at

MBA projects will decline 62% to $860

a slower pace

billion.

From August 2020 to August 2021, home

This will undoubtedly hurt lenders in 2022. In

prices rose nearly 20% -- a record one-year

an interview with CNBC, Marina Walsh, vice

increase. Experts expect robust demand to

president of industry analysis at the MBA, said continue to drive prices up still more, although "many lenders will rely more heavily on their servicing business to achieve financial goals." As a result, lenders who had a boom in revenue and net income when interest rates dropped will likely see a slowdown next year.

3. Demand for homes will outpace supply

Despite rising interest rates and declining

not at the same pace.

Goldman forecasts a price increase of 16% from October 2021 through December 2022.

This is in the same ballpark as Zillow's prediction; the online real estate giant expects home prices to rise 13.6% from October 2021 through October 2022.

mortgage origination, demand for housing

However, other researchers don't anticipate

should remain robust. According to

prices increasing quite as fast. Fannie Mae

researchers with Goldman Sachs, "of all the

and Freddie Mac project home prices to

shortages afflicting the U.S. economy, the

increase about 8% and 7%, respectively.

housing shortage might last the longest."

Meanwhile, the MBA is one of the few

Current demand has reduced the supply of

forecasting a decline, with prices falling 2.5% by the end of next year.

15 / Financially Speaking

Energy Saving Tips For Winter By: Eversource The average New England household

Heat water in a tea kettle instead of an

spends more than $1,500 a year on

open pot.

energy bills, half of which goes to heating and cooling. Here are some simple steps you can take today to keep costs down: Install Wi-Fi Thermostats.

Wi-Fi thermostats allow you to control your home temperature settings from your smartphone or tablet, so you can adjust and save energy whenever, and

wherever, works best for you. You can save up to $145 per year on your heating and cooling costs with a properly programmed Wi-Fi thermostat, and we offer instant discounts on popular models.

16 / Get Energy Efficient

Looking to warm up with some tea?

Boiling water in a tea kettle is faster than

using an open pot and uses less energy.

Eliminate air-leaks and drafts by weatherstripping and air sealing.

Sealing drafts in your home will help keep you comfortable, and seal warm in air so you do not must heat your home as much. Visit energy.gov for tips, safety advice and more. Or, let our professionals can address these areas for you through Home Energy Solutions.

Dry two or more loads in a row to

may be eligible for an incentive of up

take advantage of the heat from your to $15,000 for the installation of a heat dryer.

pump.

Get more done with less energy by

Make sure your home devices are

throwing in a second load of laundry

set to save power.

right after the first. Your dryer has already generated a wealth of heat

during your first cycle, so take advantage of that heat to save money, energy, and time.

Reverse your ceiling fans.

Normally, ceiling fans spin counterclockwise, allowing you to feel cooler in the warmer months. However,

most ceiling fans have a reverse switch that will force them to turn clockwise, producing an updraft and moving the warm air that collects near your ceiling down into the rest of the room.

Check your computer, monitor, TV and other electronics to make sure they are set to conserve energy. If you are looking for a new device, check for the ENERGY STAR® logo.

Advanced power strips.

Advanced power strips are an easy way to manage your energy usage when it comes to the electronics in your home. An advanced power strip only costs about $30 on average and can decrease your energy usage by 20-48 percent.

Consider installing a heat pump.

Heat pumps are an all-in-one heating and cooling system that use electricity to efficiently heat (or cool) your home.

During the chilly winter months, the unit collects heat from the outdoor air and transfers it to the inside your home. If you heat your home with electricity, you

17 / Get Energy Efficient

Legal Tips For First Time Landlords By: rocketlawyer.com Becoming a first-time landlord can be a lot of

gives you legal rights that would be more

work, but there’s also the promise of a lucrative

difficult to prove without documentation. It also

business (and regular rent checks). When

makes it clear that both parties have agreed to

you’re first starting out, beyond the basics of

specific terms that you can both reference later

getting the property purchased and ready to

if there is a dispute.

rent out, remember that setting yourself up for success also means having the proper legal

Get a security deposit.

protections in place—and being proactive with

Collecting a security deposit communicates to

legal issues could save you from big legal bills

the new tenant that you care about the condition

and hassles down the road. Here are some

in which the tenant keeps your property. It also

guidelines to help protect yourself when you’re

gives the tenant motivation to keep the property

starting out as a new landlord.

in the same condition in which it was first rented. If the tenant doesn’t keep the property in

Put it in writing.

good condition or damages it, you may be able

It seems simple but putting everything in writing

to keep a portion or all of the deposit to pay for

can be the smartest thing you ever do as a

repairs or additional cleaning. Make sure you

landlord.

have the tenant fill out a Renter’s Inspection

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

18 / The Legal Corner

Worksheet when the tenant first moves in to reduce disputes about the initial condition of the apartment.

Know the tenant financially.

Understand

It’s your responsibility to vet your potential

your rights

tenants. Start by having them complete

as a

a Rental Application, which will help you collect landlord. the information you need to screen your

Although the

potential tenants. Next, take the time to verify

renter has

their good credit and their employment, which

rights, so

will help you determine their ability to pay the

does the

rent. Keep in mind that it’s much easier to find

landlord. For

another potential tenant than it would be to

example, you should be able to enter the

evict a tenant who can’t pay the rent. Of

property when necessary for maintenance with

course, you also need to follow any laws that

the appropriate amount of notice given to the

protect tenants against housing discrimination, tenant. You also have the right to evict a but the inability to pay the rent generally can

tenant if they are not upholding their end of the

be used to disqualify a potential tenant. You

lease. You can use an Eviction Worksheet in

may also use a Letter to Request a Credit

this case, but before you get in this situation,

Reference to verify the prospective tenant's

it’s smart to understand the legal process for

good credit, and/or ask the tenant's employer

evicting a tenant in your city and state, since it

for a Salary Verification Letter.

varies by locality.

Understand key lease terms, like rent,

Understand the Tenant's rights, and your

maintenance, utilities, etc.

obligations to protect them.

Make sure you know and follow the terms of

Familiarize yourself with your state’s laws that

the lease you’ve signed. If you create a

protect the tenant’s rights, and any applicable

document and then flaunt the terms, your

city or county laws that might affect

tenant could take you to small claims court and you. Consult the Hud.gov Tenant Rights you could be found liable. You could also get

resources by state to find out more about the

in trouble with local housing authorities. In

laws in your area.

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.

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.

19 / The Legal Corner

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23 / Vendor Spotlight

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,

22 / 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

23 / 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.

24 / The Intelligent Investor

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

Why Is Tenant Screening Important?

By: pendo.com One thing most landlords can agree on

Running a credit check is important for a

is the tedious task of searching for

multitude of reasons. A credit check

tenants. It’s grueling, time-consuming

reveals a person’s current financial

and if you’re not a property manager,

situation and their credit history going

overwhelming. The idea of ditching

back as far as 7-10 years. Do they have

tenant screening might seem like a good a history of paying bills on time or have idea in the heat of the moment but don’t

they had accounts sent to collections?

even think about it. There’s a reason

Are they currently in debt and if so, what

tenant screening is a standard industry

kind of debt? Have they gone bankrupt

practice.

before?

Searching for reliable, trustworthy

tenants is a short-term undertaking but with long-term returns. Part of a good screening includes a credit check, criminal check, and their previous tenant history. What do these things tell you about a potential tenant?

26 / Tenant Screening Tips & Tricks

This kind of information can give you

the phone and start calling. This is an

good insight into the type of tenant a

important step in figuring out whether

person can be. If their debt is

they’re in the habit of paying their rent

connected to a student loan rather than on time. Be forgiving, though — we’re a credit card, it may be easier to

all human and if they’ve paid their rent

overlook or forgive. If they have fully

late once or twice, know that no one is

maxed credit cards, this person may

perfect. It’s important to specify when

have problems paying rent on time.

asking previous landlords if they have a history of late payments. Also, do

Another important element of a background check is looking into their

they still owe money to them?

criminal history. A person with a

This is also the time to uncover any

criminal history could put you or your

previous evictions!

neighbors at risk. Not all criminal convictions carry the same weight, though. Anything in their youth or minor traffic violations may not be dealbreakers but it’s important to see if there’s a pattern to their behavior. Any serious or lengthy records could be a red flag you shouldn’t ignore. Not only is there a possibility of putting you, other tenants, and neighbors at risk,

you put your property at risk, too. No one wants to field calls from angry

When you conduct a thorough tenant screening, you’re taking time early on

in your tenant-landlord relationship to uncover what kind of person they are.

By discovering their trustworthiness from the start, you can eliminate stress and headaches later on. Good tenants are likely to stay longer when treated well, and keep your investment (i.e. home) in good condition when they do decide to leave.

neighbors or periodically check your property to uncover serious damage.

Have you contacted their previous landlords yet? Then it’s time to pick up

27 / Tenant Screening Tips & Tricks

P. (800)369-6153

F. (888)900-9773

E. info@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.