CT Real Estate Today - January 2023 Edition

By Bob DeCosmo

Advocate For Property Owner Rights

Rent Control Proposed for CT

A group of left-wing politicians are supporting the efforts of the CT Democratic Socialist of America and want to limit rent increases to 3% annually in Connecticut even though inflation is running at double the proposed cap.

Property Owners should head the message of State Senator and Ranking Member on the Housing Committee, Rob Sampson and follow his advice.

“I strongly urge everyone to begin submitting testimony. So far, I have received about 50 emails from those in favor of the bill and zero in opposition. I have been trying to impress upon the chairs that this is bad policy but that will only sink in if there is a fair amount of opposition.

We need to be as active as they are. That means sending emails, submitting testimony, and showing up to testify at the public hearing making the case against heavy handed big government – that is causing our problems, and in favor of individual property rights and free markets “We” means property owners, lobbyists, and lawmakers.

I also want to encourage my colleagues on the Housing committee to get a reply off to those emailing us letting them know where you stand.”

From CTPOA’s point of view, Rent Control is just not going to work for several reasons.

1. It limits an owner’s ability to maintain their property and creates deferred maintenance.

2. It discourages property upgrades and improvements as you can’t get any return for the effort.

3. It causes property taxes to increase on single family homeowners as property values on multi-family dwellings diminish for grand list valuation

4. Is not feasible in the face of high inflation and run-away property expenses that landlords are now facing… where’s the proposal to cap property tax increases?

5. Forces local mom and pop landlords who provide most of the affordable housing in this country to sell to out-ofstate investors

6. Decreases new construction of apartments which is needed to combat the lack of rentals

To help with the effort, CTPOA is hosting a “Boot-Camp” on protecting your property owner right’s on Wednesday 118 at 1:00pm. We will host another workshop for those who work during the days on January 25th at 7:00PM. Register here!

It’s really time for all those who believe in free enterprise and private markets to band together and oppose these radical ideas by those who want Socialism and Communism to succeed and replace private ownership of rental housing with non-profits and government controlled.

A New Year, and a New Rush of Bills (That

Shot)

By: Mark Pazniokas, with ctmirror.org

Much like Gov. Ned Lamont’s inaugural speech Wednesday, the bills filed in the first week of the General Assembly’s five-month session offer Connecticut a hint of objectives to be pursued, if not a blueprint for producing them.

Senate Democrats filed 10 bills cosponsored by all 24 members of the majority caucus, each a statement of a lofty purpose, such as Senate Bill 4: “To promote fair and equitable housing opportunities in every community in the state.”

Exactly how that would be accomplished is for another day.

“This is just a very first step procedurally,” said Senate President Pro Tem Martin M. Looney, D-New Haven. “We wanted to

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reserve these 10 numbers to show that these are the 10 themes that we want to address in the course of the session.”

Lamont also made housing an issue in his speech, though his policy solutions have yet to be reduced to legislative language. He also promised a middle-class tax cut, details to come.

Adam Joseph, the governor’s communications director, said the administration will be offering specifics in the weeks leading to Lamont’s budget address in February.

“

We look forward to working with our legislative partners to address issues that matter to Connecticut’s residents, including: housing, health care, energy, climate,

education and career readiness,” Joseph said.

All were issues raised in his speech and are addressed in legislation filed this week.

The goal of Senate Bill 7 is timely, if vague. It seeks to “promote a more equitable and transparent energy market that works in the best interest of Connecticut’s consumers of energy.”

With everyone’s electric bill recently jumping to reflect the competitive market costs of generating power, energy legislation may be in vogue this year.

House Bill 5013 provides a more specific, if whimsical, take on the issue than Senate Bill 7.

It states: “That the general statutes be amended to require a vote by each chamber of the General Assembly on all electric or natural gas rate increases approved by the Public Utilities Regulatory Authority.”

PURA sets rates for transmission, roughly half a typical bill. The cost of generating power is set by the markets, not PURA, Eversource or United Illuminating.

The bill was filed by Rep. Christine Conley, D-Groton, who said lawmakers were getting lots of complaints from constituents about electric rates.

“

The current laws don’t allow the legislature to do anything about it, so I put in a bill to start a discussion about how can we have a little more control over these rates, because the increases are really hard for a lot of families to pay right now,” she said.

In legislative speak, “start a discussion” can be synonymous with “don’t hold your breath.”

Mitch Gross, a spokesman for the company that provides power to the majority of Connecticut homes and businesses, Eversource, declined to address the unlikely prospect of lawmakers voting on electric rates.

“

We understand there’s been a request for legislation and look forward to seeing the specific language,” he said. “Until we can review the bill, it would be be inappropriate to comment.”

Looney said not every bill is filed with the expectation that it will become law.

“Some people put in a bill as a statement of an ideal or sometimes as a statement of protest, knowing that it’s not actually likely to result in legislation but to strongly express a point of view on an issue and just to stake out a position,” he said.

House Minority Leader Vincent J. Candelora, R-North Branford, agreed with Looney but noted that sometimes unlikely proposals gain traction.

“We’re sort of in the megaphone process, making a statement, than seeing what can stick,” Candelora said. “You put your oar in the water, but if you can get some advocacy on an issue, sometimes to can go forward.”

The General Assembly meets for three months in even-numbered years and five months in odd ones. Only in the longer

session are lawmakers free to file individual bills; in the short session, they must be filed as committee bills.

“Because any legislator can introduce any bill they want, you do do get a mixture of things,” said House Speaker Matt Ritter, DHartford.

Committees will screen individual bills, clearing some for public hearings and allowing others to die without action. The first months of the session turn on getting bills voted out of committee to the floor of the House or Senate.

House members filed about four dozen bills on Wednesday, the first day of the session.

House Bill 5002 would extend bond covenant restrictions adopted in 2017 as a means to enforce so-called fiscal guardrails against overspending when revenues spike.

“

This starts the conversation, and it was important to all of us that we get this out early,” said Rep. Maria Horn, D-Salisbury, the new co-chair of the Finance, Revenue and Bonding Committee.

This is a conversation that has a better chance of leading to the passage of a bill. It is co-sponsored by Horn and the top Democrats, Ritter and House Majority Leader Jason Rojas of East Hartford, and reflects a priority of the governor.

Rep. Jeff Currey, D-East Hartford, the new co-chair of the Education Committee, filed House Bill 5003, a measure cosponsored by the House leaders to reform the state’s complex formulas for subsidizing local education.

“Right now, we have a disjointed system of, I believe, 11 different formulas,” Currey said.

“So we’re trying to wrap them all into one so that we get away from the internal and external battles when it comes to funding each budget cycle between our traditional public schools, our magnet schools and our charter schools, all of which are public schools.”

House Bill 5004, filed by Rep. Matt Blumenthal, D-Stamford, with Ritter and Rojas is a good bet for passage. It would implement early voting, as permitted by an

amendment to the Connecticut Constitution approved in November.

The bill does not yet specify exactly how early voting would be allowed.

Other bills and resolutions run the gamut.

Rep. Keith Denning, D-Wilton, is brand new, but one of his bills addresses an issue as old as Tesla cars: It would allow car makers to bypass dealers and directly sell motor vehicles, the only way Tesla does business.

Rep. Christie Carpino, R-Cromwell, has proposed a constitutional amendment placing a limit of two terms on the governor. It might have been appreciated by the last governor who was elected to three terms, Gov. John G. Rowland.

His third term was cut short by an impeachment inquiry, followed by resignation and a stint in federal prison.

What Will the CT Real Estate Market Hold in 2023? Mortgage Rates Could Hold the Key

By: Alexander Soule, with ctinsider.com

With rent increases nationally finally showing signs of flattening along with mortgage rates and home prices, people looking to move into Connecticut or within the Nutmeg State may get their best opportunity in the coming months dating back to the start of the COVID-19 pandemic.

On the heels of Zillow reporting the sharpest monthly decline in rents in seven years in November, the Mortgage Bankers Association reported a slight increase in new mortgage applications this week. The average rate for a 30-year mortgage dropped to its lowest level since September, at 6.34 percent compared to 6.42 percent a week earlier. The Mortgage Bankers Association survey ropes in three of every four mortgage applications filed in the United States.

Redfin reported earlier this month that buyers nationally are responding to the easing mortgage rates by doing another set of rounds of available listings, after being shut out of the 2022 market; or getting out ahead with plans to make a move in 2023.

"We are all aware of the need for more affordable homes [and] rentals," said Seila Mosquera-Bruno, commissioner of the Connecticut Department of Housing, during a November conference on affordable housing sponsored by the Partnership for Strong Communities. "These issues are not new to us."

Between April and June in Connecticut this year, home sellers got 4 percent more on average than the final listed price, according to Berkshire Hathaway HomeServices New

England Properties, though a percentage of those properties had prices reduced from original listings. That eased slightly over the following three months, but sellers continue to seek top dollar by historic measures. But prior the the COVID-19 pandemic, Connecticut houses were routinely selling by the same margin below asking prices making for a buyers market, but with smaller numbers of people looking to buy, whether due to the desire to rent in the city or having yet to sock away enough money to support a mortgage.

That buyers market washed away in the pandemic spike in prices as droves of families moved out of New York City, many of them wielding cash that sellers were happy to grab rather than wait on mortgage paperwork from other bidders. For buyers needing those mortgages who are still hunting for a starter home, it has been a frustrating process.

In a Thursday study, Redfin reported that cash buyers continue to be active, whether purchasing primary or secondary homes for themselves, or as investment opportunities based on rent and resale value over time. Nearly 32 percent of properties nationally were purchased exclusively with cash in October, up about 7 percentage points from a year earlier. In the lone New England market broken out in the Redfin study

Providence, R.I. one of every four properties was purchased with cash. Compounding that has been rapidly dwindling numbers of residential real estate listings. Entering October, there were slightly more than 5,000 single-family homes for sale in Connecticut as counted by Berkshire Hathaway, down from nearly 8,000 a year earlier and roughly 10,500 in October 2020.

Of Connecticut properties listed for sale since Thanksgiving, about 1,300 remain on the market heading into the Christmas weekend. They range from a three-bedroom house in Windham listed for $100,000 ("bring your tools" a listing blurb suggests) and several more condos and modular homes below that threshold; to a miniature stone castle in Westport complete with turrets and ramparts, where the owners want $12.5 million.

If the past several years are any indication, house hunters will get an inkling in early January of how many choices they will have in the 2023 spring market and how much competition they may have for the best buys in whatever corner of Connecticut they are looking. On Thursday and Friday, 75 more Connecticut sellers decided to get a jump on the January market in listing their houses for sale.

The Biggest Factors Impacting Home Insurance to Start 2023

By: Adrian Dzielnicki, with propertycasualty360.com

The $800 billion United States home insurance market is currently being challenged by three significant market conditions. The companies that respond the best to these challenges will provide the biggest benefits to consumers and win their trust, while old-fashioned insurance agencies that fail to adapt risk becoming irrelevant very quickly.

It’s important to understand how market conditions affect an industry as large and valuable as property insurance – both as a homeowner shopping for home insurance policies and as a potential investor seeking to understand which insurance companies have an opportunity to gain significant market share in 2023.

How inflation affects home insurance

Inflation wreaks havoc on all types of consumer goods and services and insurance is not immune to its damage. The cost of insurance goes up during periods of inflation in response to the cost of things that impact claims and premiums.

For example, the cost of repairing a home has increased this year. Materials and labor costs have gone up due to inflation and a shortage of skilled labor. As the cost to cover a claim spikes, insurance providers raise their premiums. That’s a costly double -hit for the consumer.

For consumers who are already feeling their budgets squeezed by rising prices just about everywhere, higher insurance rates can be crippling. The good news is that this is an ideal time for consumers to shop

around. In addition to finding lower premiums from a different provider, consumers might also discover discounts and incentives that they didn’t know they qualify for.

Customization of insurance coverage is key during times of high inflation. It’s important for consumers to compare rates from as many companies as possible to make sure they aren’t paying more than they need to, or paying for things on their policy they don’t need.

Companies that can leverage bundles while lowering overhead by keeping staffing and internal costs down are able to pass more savings on to the buyer.

Times of higher inflation put a strain on everyone, but they can also reveal the insurance companies that are really working with the consumer’s best interest in mind.

Natural disasters are increasing

Tracking data on natural disasters reveals a dramatic increase in catastrophic events, especially from 1980 to today. In the last ten years, natural disasters have cost the U.S. $200 billion per year. Similar to the inflation model, as costs of repairs

increase with the frequency of natural disasters, the cost of insurance premiums will follow.

In addition to homeowners insurance premiums going up across the country, many property owners are not properly insured against catastrophic events like floods. According to FEMA, floods are the most common and costly natural disasters in the United States. Still, many homeowners are misinformed about flood insurance. There are several misconceptions about what flood insurance covers, how to buy it and what it should cost. It’s important to consult an agent who can offer guidance on insuring a home against natural disasters, like floods. Too many homeowners discover after a flood that their policy doesn’t actually include flood insurance.

The truth is, all home insurance policies should include flood insurance. It’s too big of a risk right now for a homeowner not to have it. Homeowners who think they are protected because they live in a desert climate that isn’t listed as a flood zone should consider the recent deadly flooding that occurred in southern Nevada, including Las Vegas. In fact, 25% of all flood claims come from people living outside of high-risk flood areas.

With climate change causing an increase in catastrophic weather events across the country, the environmental impact to the insurance industry will only become more severe. It’s important for consumers to understand what their policies do and do not cover when it comes to natural disasters.

This type of coverage is also a big differentiator when comparing insurance

companies.

Relocations, general anxiety and rate increases trigger more shopping

A rise in remote work opportunities encouraged many Americans to move, during the height of the pandemic and continuing into 2022. The Southeast saw the biggest increase in population, as people left places like California, New York and Chicago for warmer and less congested southeastern states like Texas, Florida and South Carolina.

As more people got mortgages in states where they hadn’t previously lived, many homeowners got their home insurance from companies they hadn’t previously done business with. While almost every state in the country saw home insurance premiums increase, lower taxes, housing prices and the overall lower cost of living made the southeast very attractive to budget

conscious consumers.

This influx of new residents offers a valuable opportunity to insurance companies that cover southern states.

Providers who can offer competitive rates and superior customer service should be able to grow – despite challenging economic times.

According to a Consumer Pulse Survey conducted by Transunion in Q2 of 2022, topping the concerns of most Americans are inflation, the possibility of a recession and increased housing costs. As people reduce their spending in response to anxiety, they also take a closer look at their current expenses, including what they pay for home insurance. More consumers are likely to visit digital insurance aggregators in times of uncertainty. The ability to personally compare rates from over 50 insurance providers at once, without having to speak to a sales person, gives people a sense of control that they want–especially when facing an uncertain future.

The homeowner’s insurance market is very complex and still fragmented despite recent consolidations. Many insurance companies have failed to modernize their systems to the levels of customization and

speed that consumers expect from service providers. That puts offline insurance companies at a huge disadvantage at the very same moment when more people are shopping around.

The type of insurance company that will be seen as the remedy to all of the insurance anxiety people are feeling will be one that has the best access to the data needed to deliver quotes from the most providers, offer a seamless online shopping experience and ensure people are getting the coverage they need at the best price.

Survivors know how to turn challenges into opportunities. The home insurance landscape will reveal this truth as well as any industry heading into 2023.

Winterization Tips for Multifamily Properties

From: watersignal.com

Is your multifamily property ready for winter? Proper winterization is key to keeping your community in good shape and ensuring resident satisfaction. Here are seven winterization tips to help your multifamily property this winter: Prepare for winter storms early Don’t wait until a bitter storm hits. Take time to create or review your property’s emergency winter weather plan, make sure you have an ample supply of road salt ready to go, and touch base with any seasonal contractors you use for snow and ice clearing.

Inspect, insulate, and monitor water pipes

If you live in a region that gets particularly frigid during the winter, then you know the danger of frozen pipes.

Before temperatures go below freezing, you should inspect and wrap your pipes using an insulating tape or foam tubes, both of which are available at any hardware store. It’s also a good idea to install a water meter data management solution such as WaterSignal, which monitors your facility’s water system in real-time and detects leaks and other problems right as they happen. Should a pipe freeze and rupture on an especially cold night, you’ll know about it immediately.

Seal

drafty windows, doors, and other cracks

Cold air wafting into your building from the outside is not only uncomfortable it wastes energy and results in high utility bills. Take the time to walk around and inspect the building for signs of cold drafts, then repair or caulk those spots accordingly. You also want to make sure that weather stripping and exterior door sweeps are properly installed.

Clear your gutters

If your building’s gutters are loaded up with leaves and other debris, they won’t drain properly. This is technically a year -round recommendation, but a clogged gutter in the winter can result in a dangerous, weighty accumulation of snow and ice that can cause leaks and damage to your building.

Don’t forget your irrigation system

In colder regions, draining the pipes of your irrigation system is strongly recommended, or else leftover water can freeze and damage your entire system. Draining your irrigation system

may not be as critical in more temperate regions, but if a sudden cold snap is in the forecast, make sure the freeze sensor is functional and be prepared to turn the water supply on and off as needed.

Keep an eye on leaning trees and branches

Ice storms, high winds, and heavy snow accumulation are more than capable of bringing down a tree. Before winter hits, have an arborist come in to determine if any trees surrounding your property are compromised enough to warrant being cut down.

Encourage residents to report issues as soon as possible

Make sure your residents know the protocol for reporting issues, and when a ticket comes in, address it promptly. The sooner you become aware of issues affecting your property, the sooner you can have them resolved without causing extra damage.

Inflation has Made Everything More Expensive. Here are the Changes Coming in 2023 to Help Your Money Go Further

By: Rob Wile, from nbcnews.com

As inflation wears on American consumers, a host of government and financial rules are changing to help fight rising prices that have reduced your spending power.

In many cases, the changes are intended to help people pay lower taxes and save more, too.

The 12-month inflation rate landed at 7.1% in November. That was down slightly from the 7.7% seen in October, but still near a four-decade high.

Starting in 2023, everything from Social Security benefits to state and local minimum wages are set to adjust in most cases at rates not seen in a generation. Some analysts and business leaders say

they believe inflation has already peaked and that, even as prices rise, it will not be as severe as it was in the summer of 2022.

“Inflation continues to be a stubborn force globally, though we’ve started to see some moderating impacts in certain areas of our businesses compared to earlier in the year,” Abbott Laboratories CEO Robert Ford said Oct. 19, CNBC reported.

But that higher inflation has already been baked into many tax and wage figures that will change in 2023.

Social Security benefits

Social Security beneficiaries will see the largest annual cost-of-living adjustment (COLA) in a generation, with benefits

increasing 8.7% beginning in January. Alongside an unusual, one-time decrease in the annual Medicare premium, fixed-income recipients may enjoy 100% of the COLA increase for 2023.

Income tax brackets

The IRS tax brackets corresponding to your marginal tax rates are also shifting upward by 7% — thanks to inflation. In an October announcement, the IRS also said it would increase the standard deduction. That amount for married couples filing jointly for the 2023 tax year will rise to $27,700 up $1,800 from the prior year.

For single taxpayers and married individuals filing separately, the standard deduction is rising to $13,850, up $900; and for heads of households, the standard deduction will be $20,800, an increase of $1,400.

401(k) pre-tax contribution limits

The IRS is setting new, higher limits on how much employees and employers can contribute toward retirement plans. For 2023, individual employees will be able to contribute up to $22,500 to their 401(k) retirement accounts, up from $20,500 in 2022.

Combined with employer contributions, employees will see a total annual limit of

$66,000 in 2023, up from $61,000 in 2022.

Yields on savings, CD accounts and Ibonds

Yes, interest rates have gone up across the board, making things like mortgages, auto loans and credit cards more expensive. But many banks, especially those that are onlineonly, are also paying out more money through higher interest rates for high-yield savings and certificate of deposit accounts. Be aware though: Some banks may not automatically raise the interest rate on your existing savings account, but instead require customers to switch into higher yielding accounts from current ones, Bankrate.com warns.

Meanwhile, yields on inflation-protected bonds were offering a 6.89% interest rate as of December 2022.

Parts of the U.S. adjusting minimum wage Minimum wage in some jurisdictions is tied to inflation and is set to experience annual costof-living adjustments in the coming year. California is the largest state that will see a cost-of-living adjustment next year, with the minimum wage rising to $15.50 for all establishments. California's increase is limited by a statute that declares the minimum wage cannot increase by more than 3.5% each year.

How to Draft Proof Your Home for Energy Efficiency

From: HomeServe

When the weather is frigid and bone-chilling, it’s time to keep the heat in and the cold out. Draftproofing your home can save money and precious heat. One way to help is by scheduling an energy audit, where your home’s energy efficiency will be evaluated, and you will be given solutions to address problem areas. But if you don’t have time to schedule one, here are some DIY tips to help seal in the heat.

Target the most common areas of your home first.

The US Department of Energy recommends a “Building Pressurization Test,” which makes it easier to detect air leaks:

First, turn off any heating systems and your water heater. Be sure that all doors and windows are shut tight, including your fireplace. Next, switch on all of your ventilation fans and anything that pushes air outside. This includes: kitchen and bathroom ventilation, clothes dryer,

and/or window fans. This will increase the amount of air flowing through leaky spots, making it easier to identify problem areas. Move a lit incense stick, candle, or smoke stick near the places where air commonly leaks. You’ll know that you’ve found a draft when the smoke is disturbed or blows away from the area.

So where are the most common drafty places? Here’s a list of the frequent offenders, and how to fix them:

Doors and windows:

Aging or damaged weather-stripping around your windows and doors can easily be replaced. Read more on how to do this in a This Old House article.

Adding or replacing a door sweep can make a world of difference and really improve energy efficiency. Best of all, it’s easy to do. To get a

perfect fit simply close the door, measure the length of the door, and cut the size you need. There are a few kind of sweeps to choose from (drip-cap, brush, etc.) so ask your local hardware store if you’re not sure which is best for you.

Lastly, if your windows are in poor condition, rattling, or damaged, it might be time to replace them with more energy-efficient ones. This Consumer Reports article explains the 5 things you need to know before replacing your windows.

Attics:

Depending on your home, the amount and type of insulation in your attic will vary. You can quickly combat air leaks around entrances to your attic or crawl space. Sealing up gaps around pull-down ladders, access panels, and vents from bathrooms or kitchens will help. Building an insulating cover for your attic access ladder is a great DIY project, too.

Chimneys: Check your damper to see if it is fully sealed. Also, keeping fireplace doors closed tight when not is use will help a drafty family room. In the attic, check for gaps where the chimney enters the attic and breaches the roof.

Outlets and switch plates:

Foam inserts easily tuck in behind the faceplates for switches and outlets, and are an inexpensive, quick fix. If you have

recessed lights, be sure to check those, too, and add insulating caps where there is a possible air leak.

Utility and appliance connections: Every place that cables, pipes, and wires run through your house is an opportunity for heat loss. Be sure to check for gaps around dryer vents, phone and cable access points, and water or drainage pipes.

Ventilation:

Check your kitchen and bathroom fans for air gaps. Fill spaces with caulk or add weatherstripping where the vents connect to the walls or ceiling.

Spending an afternoon searching out and sealing up drafty spots can help you minimize many issues, immediately help increase your comfort level, and increase your home’s energy efficiency. You’ll be happy when your next energy bill comes, too. If you live in a cold climate you might want to also check out our article on how to winterize your home.

If you are unsure about a repair or need help getting into the tight corners of your house, don’t hesitate to call in the professionals.

The Importance of a Lease Agreement When Leasing a Property

From: Bostonapartments.com

Signing a lease is one of the most important steps in renting out a property. This protects you from any financial burden that may occur. If you fail to have a proper lease agreement, you may even end up as far as giving up your rental investment. Thus, as a landlord, you have to protect yourself and your property by having a lease agreement.

Renting has a specified length of time. A lease agreement determines this time as well as the terms of the lease the tenant and the landlords have agreed upon. The lease agreement also helps set who's going to be responsible for certain events and answers many questions during the rental term. It's always a good idea to review the lease agreement with tenants so they won't have to come back to you if they have questions.

The following are just some of the importance of a lease agreement when leasing a property:

1. Determine Rent Details

Stating the rental fee explicitly will avoid confusion and helps the tenant determine if the property is within the range of their budget or not. It's also good to have a specific time for due dates on rentals, so there will be no delays in payment, and the tenant will have properly prepared their finances for each monthly term.

2. Clarify Who's Responsible For Repairs

Repairs of the house may happen. If a lightbulb is busted, usually, it'll be the tenant who'll take care of it. However, for major issues, like broken doors and windows, which is already part of the physical property, it should be specifically stated who'll do the maintenance of major repairs.

Most landlords would be responsible for the functional systems of a rental property, such as plumbing, electricity, heat, and air-conditioning,

but there has to be a process in place in case tenant needs their assistance.

For example, will the tenant take care of these major repairs and have the money paid back by the landlord, or will the landlord be responsible for the repairs themselves? The lease should also include the time frame when the repairs should start.

These terms are important because a tenant cannot live in a house with repair issues. Repairs must be done immediately because it can get uncomfortable living in the property or even dangerous.

3. Determine Which Utilities Are Covered

Utilities are almost always the responsibility of the tenant. However, there are some lease agreements that include utilities with the monthly rent.

The tenant will have the chance to know which utilities they have to pay for and which ones will get covered with their monthly rent.

It's important to state clearly the utilities that'll be covered. This way, the tenant will know which utility they will have to pay separately for.

4. Specify The Lease Term

The lease term is the length of time a tenant will be staying in a property. This gives them a clear idea that they have to fulfill the contract.

Some lease agreements will state that a

tenant has to stay in a property for two years. Tenants will know if this fits their needs because some tenants will only stay in a place for six months.

Tenants can also encounter personal issues and may have to move out earlier than stipulated in the agreement. In this case, it should be determined what the penalties are and if the tenant will be agreeing to be responsible for it.

5. Terms of The Security Deposit

A security deposit, or a damage deposit, protect the landlord. This is a deposit that's paid for by the tenant once the lease starts.

Many landlords will ask for this deposit, and it should be made clear to the tenant when the money will be returned to them and under what conditions. Usually, landlords will only return the deposit once they've fully inspected a property and have seen that it's damage free. Some landlords, on the other hand, will only return the deposit if the rental space has already been cleaned thoroughly.

6. Notification of Events

A tenant has responsibilities to the landlord's property, and this should be stipulated. Every action of the tenant affects the property value and insurance of the property.

For example, if the tenant goes on vacation, it should be stated that they should inform the landlord. You may also find that you'll have a

guest or non-tenant stay with you for an extended period of time. The landlord should be informed. If the rental property is unattended, the landlord should know because it can affect insurance policies in case something happens.

Tenants also have a responsibility to the upkeep of the rental property, and it's within the landlord's best interests to be immediately informed if there's any damage to the functional system of the house, such as plumbing and electricity. These issues should be repaired quickly because the damage will spread if it's left untouched.

The tenant should know in the lease agreement if they should inform the landlord if any such issues happen.

7.ConditionsForRentIncreases

If a tenant is only going to stay in a property for a short period of time, rent increases won't be an issue. But, renting for a longer period of time can increase the price of the rent.

The lease agreement should specify the percentage which the rent will rise.

8.KnowWhatTypesofPets

Some tenants will have pets, and it's important for a landlord to state explicitly which kinds of pets are allowed in the property. For example, can a tenant keep large breeds of dogs? If possible, the lease agreement should state the type of breeds allowed.

Pets affect the property due to the noise, smell, and mess they make. Pets also potentially bring in allergies, so a landlord should have a stipulation for pets because it affects the living conditions of the other tenants as well as the cleanliness of the property.

Final Thoughts

A property is an investment, and you want to make your property earn money for you. However, renting a property can cause you to lose money if you have tenants that are not aware of lease agreements and do things that are counter to it.

It's important to review the lease agreement with them, so there should be a clear expectation for each party.

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Choosing the Best Tenant Screening Platform

From: TenantTracks

We've all heard the horror stories. A tenant destroys the apartment or stops paying rent and refuses to leave, which turns into a long legal battle trying to evict and you end up losing thousands of dollars fighting in a pro-tenant legal system.

Now, more than ever, it's imperative to know who you are renting to. The best way to learn who your tenants are before handing over the keys is to use a high-quality tenant screening platform that covers as many data points as possible. You should always use the most comprehensive screening report to have peace of mind knowing your rental is in good hands. So, let's talk about what to look for in a quality tenant screening report and why CTPOA endorses TenantTracks as a preferred tenant screening provider. In general, you want to use a company that uncovers and reports as much tenant data as

possible. Oftentimes, screening companies will use data from somewhere like TransUnion and just add their own branding to it, this is called “Private Labeling.” There is one company, however, TenantTracks, that takes this data, and then compounds it with many extra data points to ensure the full picture of the potential tenant is being reported.

You never want to use a platform that offers ala-carte reporting. We've never understood why a company would withhold important and extremely helpful data for you. For example, they'd give you a criminal report, but not a credit report. How are you supposed to make an informed leasing decision if you only have a piece of the pie? Soon you'll come to realize you're paying much more than you should be buying the report bit by bit. So, make sure you work with a company that gives you the whole pie up front. No funny business. No stress over

discrimination complaints and no hidden fees for more data.

It’s standard for a background check to include criminal, eviction data and credit scores. What you’re going to want to keep an eye out for is the following very important information.

• Nationwide Law-Suits, Liens and Judgments report including small claims cases

• US Criminal Search including the National Sex-Offender Registry

• OFAC Report (Terrorist Watch-list Report) to comply with the U.S. Patriot Act

If you’re looking to cover ALL bases (and you should when it comes to your property), we highly recommend taking advantage of the following tenant data points TenantTracks provides as well.

• CT Small Claims Cases with 7 years of full records

• A People Search showing all known names and previous addresses associated with your applicant’s social security number

• CT Housing Court Records with 7 full years of records from all 15 Courts, not just 11

• Alias name logic, detailing name changes from divorces and marriages

• An internal & exclusive database of noncompliant tenants using owner-reported data TenantTracks is proud to provide these important extra benefits, included in ALL of their reports. Let’s break them down a bit more.

Believe it or not, not all tenant screening platforms include civil case data, though they 100% should. It’s important to know what parties were involved in a lawsuit and what prompted the lawsuit in the first place. Credit reports no longer show civil court judgments in their report so you need to make sure small claims lawsuits, especially housing cases are covered.

Moreso, not every Connecticut Court reports their files to the National Eviction databases efficiently, or at all. TenantTracks goes the extra mile to extract this data from all the courthouses in Connecticut, unlike their competitors. To do this, TenantTracks sends data collectors to record the information on these “Offline Cases” in Bantam, New London, Danielson and Derby Courts and then uploads the information to their own server.

What’s an alias name? You might not realize how important this actually is in tenant screening. Mary Smith might not show any eviction records, but if you were to run her

name through the TenantTracks “Alias Name Logic”, you might see her maiden name was Jones, not Smith, and she’s had three past evictions. This is crucially important data for landlords. The People Search allows for ALias Name logic to be used and is another extra measure TenantTracks uses to provide more accurate screening reports.

Lastly, and this one we’re very excited about. TenantTracks has recently incorporated a new Tenant performance Database function free for all users. You can now report tenant payment data about your tenants. So what does this mean? TenantTracks is taking their tenant reporting to a whole new level. Traditional reports fail to report critical, real-time tenant payment information, but with their new “Tenant Performance” database, you can easily report updates about your tenant in real time. This data will then be shown to future landlords for 7 years. Here are some of the important tenant payment events you’ll be able to report. 

Notice to Quit Served

Summons and Complaint Served

Tenants paid rent after 10 days grace period

Tenant made partial payment

Tenant made no payment / no legal action taken

Tenant served notice of lease violation

Cash for keys paid in lieu of eviction

Pretty powerful, right? You can now paint a much more clear picture of tenant history. This will save future landlords the hardship of dealing with non-compliant tenants and improve the rental housing industry.

We’ve covered a lot in the article, but as landlords ourselves, we want you to understand how drastically different some tenant screening companies are from others, and how easily you can fall into a trap when you’re not getting the most accurate data. Across New England, your choice is easy. Choose TenantTracks, the most accurate tenant screening platform available.

Events & Meetings & Networking

CT Real Estate Investors Association

(CTREIA)

Next Meeting: Jan. 16th

Time: 5:45 PM - 9:00 PM

Where: Sheraton Rocky Hill 100 Capital Blvd. Rocky Hill, CT 06067

Contact: 860-265-4414

About: When you come on Monday night Alan will show you how you can get the money you need to buy single-family houses, commercial buildings, apartment complexes, or luxury homes, regardless of your credit or financial situation.

Register here!

CT Real Estate Investors Association (CTREIA)

Next Meeting: Jan. 17th

Time: 5:45 PM - 9:00 PM

Where: Keller William 2777 Summer St. Suite 700 Stamford, CT 06905

Contact: 860-265-4414

About: When you come on Tuesday night Alan will show you how you can get the money you need to buy single-family houses, commercial buildings, apartment complexes, or luxury homes, regardless of your credit or financial situation.

Register here!

Connecticut Property Owners Alliance

(CTPOA)

Next Meeting: Jan. 18th Time: 1:00 PM - 2:00

Where: Zoom Meeting

Contact: 800-369-6153

About: If you haven't real estate professionals in for a tough 2023. Join for a Protecting Your Property Bootcamp on Wednesday, January 1pm EST.

Bob DeCosmo, a CT fierce landlord advocate, has supporting landlords at Capitol for decades and now he's going to show what we can do to help.

Register here!

Owners

Greater Bridgeport Board of Realtors (GBBR) (

18th PM Meeting 6153 heard, professionals are Join us on 18th at fierce has been at the and show us help.

Next Meeting: Jan. 18th

Time: 2:00 PM - 4:00 PM

Where: CT Basement Systems 33 Progress Ave Seymour, CT 06483 Contact: 203-880-5661

About: Connecticut basement systems is having an open house! Enjoy an afternoon of networking to find solutions for your clients and their property improvement needs. Register here!

NEI Real Estate Investor Meetup

(Words)

Next Meeting: Jan. 19th

Time: 6:00 PM - 9:00 PM

Where: Back Nine Tavern 245 Hartford Road New Britain, CT 06053 Contact: 203-915-3803

About: Want to acquire your next property with little to no money?

Special Guest Pitor Salanowski joins us and discusses the various techniques you can utilize to creatively finance your next deal!

Register here!

CT Real Estate Investors Association (CTREIA)

Next Meeting: Jan. 21st

Time: 9:00 AM - 4:00 PM

Where: CTREIA 415 Silas Deane Highway, Suite 304A Wethersfield, CT 06109 Contact: 860-265-4414

About: Alan will show you how you can get the money you need to buy singlefamily houses, commercial buildings, apartment complexes, or luxury homes, regardless of your credit or financial situation. Register here!

Support the CTPOA Vendors!

Name Contact Service

BestWay Mortgage, Brandon Parenti

Phone: (203) 441-4059 Website: Click here! Mortgages & Loans (Professional Services)

Pro Property Management

Phone: (203) 909-6333 Website: Click here! Property Management Services (Professional Services)

The Law Office of Yona Gregory

Phone: (860) 443-9662 Website: Click here!

Attorney / Evictions (Professional Services)

The Brodrick Law Firm Phone: (203) 758-8822 Website: Click here!

TenantTracks

Phone: (888) 610-4710 Website: Click here!

Attorney / R.E. Closings (Professional Services)

Tenant Screening (Professional Services)

Tammy Enquist Canfield: Comparion Insurance Agency

ServiceMaster

Phone: (203) 695-3893 Website: Click here! Insurance (Professional Services)

Phone: (860) 735-4704

Website: Click here! Restoration (Maintenance & Tradesmen)

Rentdrop

Email: support@rentdrop.io Website: Click here!

Rent Collection (Professional Services)

Premier Real Estate Investment Group

Cesar L. Sousa, Real Estate Attorney

Phone: (860) 335-0681 Real Estate Multi-Family (Professional Services)

Phone: (203) 583-8299 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

Landlord Collection Agency

Phone: (203) 509-2717 Website: Click here! Mortgages & Loans (Professional Services)

Phone: (800) 369-6153 Website: Click here! Collection Agency (Professional Services)

Junk Bear Phone: (860) 378-2801 Website: Click here! Rubbish & Hauling (Maintenance & Tradesmen)

First World Mortgage: Jesus A. Carrero

The Miranda Team Home Inspections

Phone: (203) 715-0961 Website: Click here! Mortgages & Loans (Professional Services)

Phone: (203) 490-7855 Website: Click here! Home Inspections (Professional Services)

Support the CTPOA Vendors!

Name Contact Service

Marion Szarzynski, HomeBridge Mortgage Loan Originator

Brenda Tate, Photographer

Phone: (203) 768-5098 Website: Click here! Mortgages & Loans (Professional Services)

Jeff Zappone, Loan Officer at CrossCountry Mortgage

Dawn Cabral, Broker/ Owner, GRI, SRES at West View Properties LLC

Dana M Guiliano

Phone: (860) 631-7622 Website: Click here! Real Estate Photography (Professional Services)

Phone: (203) 592-3602 Website: Click here! Mortgages & Loans (Professional Services)

Phone: (203) 228-7564 Website: Click here! Real Estate Residential (Professional Services)

Phone: (203) 419-5857 Attorney / Evictions (Professional Services)

Venoal M. Fountain, Jr., Partner at Hirsch, Levy & Fountain, LLC

Phone: (203) 336-3144 Website: Click here! Attorney / Evictions (Professional Services)

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