CT Real Estate Today - July 2021 Edition by CT Real Estate Today

The CDC has extended the eviction moratorium for what should be the final time. It will now expire July 31st.

Don’t sweat it! Beat the heat and humidity with these energy efficient tips for your home!

July 2021 Edition

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FEATURED ARTICLES Page: News & Views From The Capitol - ‘The Eviction Moratorium Is Killing Small Landlords,’ Says One, As Ban Is Extended Another Month: The one-month extension of the CDC’s eviction moratorium is another nail in the coffin for struggling landlords. Will this be the last extension?

Realtor Report - What Is A 'Whisper Listing,' And Is Connecticut Seeing The Trend?: Whisper listings, also referred to as ‘pocket listings’ and ‘off-market listings’ can give a buyer the advantage in this crazy market. Is CT seeing an increase in these ‘whisper listings?’

Insurance Insights - How A Pool Affects Your Homeowners Insurance: Having a pool during these hot summer months is always nice but have you considered how it is affecting the cost of your homeowners insurance?

Property Managements Tools, Tips & Techniques - 4 Growing Property Management Businesses Share Their Secrets to Success: Four property management businesses share their secrets to success to help you more efficiently manage your properties, daily to-dos and customer relationships.

Page: Financially Speaking - Financial Tips After Buying Your First Home: Buying your first home can be overwhelming. Here are some tips to help secure your financial footing through homeownership.

Get Energy Efficient - Don’t Sweat It: Energy Efficient Home Humidity Tips: Summer is here as well as the humidity that comes with it. Here are a few tricks to try and keep your house a little more comfortable during those extra humid days.

The Legal Corner - The Importance Of A Lease Agreement When Leasing A Property: Signing a lease is one of the most important steps in renting out a property. Here are a few things you should make sure are broken down in your rental agreements!

Publisher’s Message “ Helping Property Owners Since 1994” - Bob De Cosmo, President

Bob DeCosmo began purchasing and managing rental real estate in 1982 and is a strong advocate for private property ownership right's in Connecticut.

Published by CTPOA Our goals; Educate our members on “Best Practices” for maximum efficiency. Increase profitability by lowering operating expenses via vendor discounts. Provide access to “Core Services” needed to better manage and maintain properties.

Our Team: Carmine DeCosmo Melissa DeCosmo Paul Jenney

We’re already halfway through 2021 as another month has come and gone – we hope you all had a great Fourth of July. It has been another crazy year so far, but things are finally starting to come together and make a little more sense. The eviction moratorium in Connecticut has expired, although the Governor has implemented a few new rules regarding evictions. “While allowing landlords to resume eviction proceedings, the governor also is extending an appeal period for tenants from three to 30 days — and requiring landlords to file applications for the federal relief available through UniteCT before evicting people for non-payment of rent.” The federal moratorium was extended but is set to expire at the end of this month. Hopefully that will be the end of it.

We have a lot of exciting things going on behind the scenes here at CTPOA and we look forward to showing you some of the things we’re working on.

‘The Eviction Moratorium Is Killing Small Landlords,’ Says One, As Ban Is Extended Another Month From: cnbc.com The one-month extension of the Centers for Disease Control and Prevention’s eviction moratorium was welcome news for tenants but another nail in the coffin for some struggling landlords. Groups representing landlords had been lobbying hard to end the moratorium and now warn even another month will put some of those landlords out of business. “Each passing month further escalates the risk of losing an ever-increasing amount of rental housing, ultimately jeopardizing the availability of safe, sustainable and affordable housing for all Americans,” wrote Bob Pinnegar, CEO of the National Apartment Association, in a release. “Flawed eviction moratoriums leave renters with insurmountable debt and housing providers holding the bag as our nation’s housing affordability crisis spirals into a housing affordability disaster.” The majority of the nation’s landlords are individual investors. They own about 23 million units in 17 million properties, according to the U.S. Census. More than 6 million renter households are behind on rent, also according to the Census. Landlords have next to no recourse. Howard Simon owns a small building in Massachusetts with three rental units. He hasn’t received the rent on one of them since last October and is out about $7,000 so far. “I have mortgages, I have expenses for repairs to that particular building, I’m losing one-third of the rent just because of this,” said Simon. “And you know the other tenants who are occupying the other two units, they’re trying their hardest and doing their best.” Simon has contacted the delinquent tenants but said they will not respond, nor will they apply for the aid available to them. While about $34 billion in federal assistance has been distributed to states for back rent and utilities, getting that cash to landlords has been an onerous process because the tenant must be involved.

“In my particular instance the tenant is not cooperating with even completing the application. I’m just a small landlord, and I’m not a big corporation like many of the other large rental organizations, so although the funding is very helpful, if the tenant doesn’t cooperate everything falls apart,” said Simon. Before the extension of the eviction ban, there would have been about 473,000 eviction filings in July and August, according to calculations by Zillow from Census estimates. That is down by about 100,000 from what was forecast last March. The improvement is due to the federal aid reaching some renters as well as an overall improvement in the economy and employment. The numbers are likely to decline further with an extra month of breathing room. Still, landlords say they are angry at the way the federal aid, $46 billion from two different relief packages, has been both allocated and distributed. “If the rental assistance bureaucracy is a monster, then the local governments that created them are Dr. Frankenstein,” said Dean Hunter, CEO of the Small Multifamily Owners Association and a landlord himself. “They’ve required the states and the cities to create entire new infrastructures to get the money out, instead of using the existing community based organizations and safety nets.”

Hunter contends that small landlords are being treated like large corporations but instead should have been included in the small business relief package, the Paycheck Protection Program. “This is the most excessively and overly broad taking of private property in my lifetime,” said Hunter. “The eviction moratorium is killing small landlords, not the pandemic. After extending the moratorium, the Biden administration outlined measures it would take to further assist both renters and landlords. It said the U.S. Treasury would clarify “how grantees may achieve economies of scale by obtaining information in bulk from utility providers and landlords with multiple units to help speed the determination of household eligibility and to bundle, in a single payment, approved amounts for the benefit of multiple eligible tenants.” That, and other efforts from state and local governments, should help some, but if landlords don’t get the relief they need, there will be ramifications for the wider housing market. “What there is going to be a tsunami of is a loss of naturally occurring, affordable housing, because small landlords are going to sell their properties,” said Hunter. 7

What Is A Whisper Listing and Is Connecticut Seeing The Trend? From: ctpost.com Connecticut’s real estate market is still bustling along with every county in the state recording offers above asking prices, according to a calculation by Berkshire Hathaway HomeServices New England Properties. With surging prices, cash offers put forth more often and “best and final” offers presented following open houses, it's a competitive environment. And in that competition comes another trend: whisper listings. Also known as "off-market listings" or "pocket listings, these are listings of homes up for sale that do not appear on traditional home search websites like Realtor.com or Zillow and aren't available to the general public. These types of listings often require help from realtors in tracking them down, according to Jonathan Carbutti, managing broker and realtor at Carbutti & Co. Realtors in Wallingford. “The right real estate agent or team can certainly give buyers a heads up on properties before they hit the market because often, we are meeting with those potential sellers’ days, weeks and even months before they are ultimately ready to go to the marketplace,” he said in an email. Susan Isaak, a realtor with Houlihan Lawrence’s

listings on a “semi-regular basis.” “Just because of the lack of free inventory, there are agents who call other agents just to ask them if they know of anything or anyone who’s thinking about selling something,” she said. “Or you might have a relationship with a seller who doesn’t want their house on the market for whatever reason.” Managing broker and principal at The Riverside Realty Group in Westport Brett Lieberman said he typically sees this kind of listing used by two kinds of sellers. “Whisper listings, traditionally known as ‘pocket listings’ are off-market properties available for sale but not offered to the general public,” he said in an email. “Sellers who typically engage in this kind of sale are either testing the market or seek privacy and want to limit the number of people coming through the property.” While Lieberman said realtors at The Riverside Realty Group try to discourage clients from trying to sell their homes using pocket listings in most circumstances, Carbutti offered that his group is starting to flag homes on home search websites before they go up for sale.

Riverside office, said she sees these off-market

“Now we are starting to market properties as a ‘coming soon’ category, where buyers are able to view a few of the photos, have the actual property address and list price days and weeks before that property becomes available to the public,” he said.

is not a concerted effort on behalf of realtors to make sales in this manner, as a private transaction "excludes any recognition that it was your sale."

This way, Carbutti said buyers can at least visit the neighborhood and drive by the property before the house goes up for sale so they can act quickly on touring the home, should they decide to pursue it. If a buyer does wish to sell their home via a whisper listing, the method is not without its drawbacks, according to Lieberman. “The biggest con to this type of listing is limited exposure which means the sellers could be leaving money on the table,” he said. “It also decreases the chances for multiple bids and if a deal falls through, there is zero market visibility to trigger more While whisper listings are occurring in the market, possibilities for sale of the property.” Lieberman said if buyers are not finding homes of interest to them on home search websites, all they Isaak, who is currently working on an off-market transaction, said that sales done in this more private must do is check in with their realtor. way still have to be reported for future use through “Our clients are always welcome to ask if we have the MLS, or multiple listing service used by realtors. any homes available that might be of interest and However, sellers aren't the only ones who may not not listed on the MLS,” he said. get maximum visibility for the home. For Isaak, off-market sales aren't something that “The way that they’re reported on the MLS is that should make house hunters apprehensive, either. they’re reported as ‘closed,’ without being an active “It’s not like there’s some secret world of real estate listing,” she said. “They are reported because we listings that the general public doesn’t know about," need the data for comps and appraisals. The only she said. "I think within that secrecy, it can feel way you know who part of the deal was to look at exclusive, but it really just boils down to sometimes, the listing notes. It’ll say who the agents were, but there’s a buyer who knows that they’re considering it’s counted as a non-MLS sale because if you sell if selling [their house], and you strike a deal with them off-market, you obviously aren’t going to get credit directly.” as an agent.” Because of this, Isaak said that in her opinion, there

How A Pool Affects Your Homeowners Insurance From: valuepenguin.com

How A Pool Affects Your Homeowners Insurance If you are thinking of buying or building a swimming pool, it's best to contact your home insurance company first. Pools are a liability and, like trampolines, are an "attractive nuisance." That means homeowners are liable for any children who use their pools, whether they have permission or not.

(such as a tool shed), and a carrier might consider a pool to be either one. Knowing which of these coverages a pool falls under is important because it will either impact your replacement cost value or personal property limit of your policy.

For example, say your home insurance company includes in-ground pools in the replacement cost value of your policy. Most in-ground pools cost roughly $20,000 to install but some cost more. Increasing the Home insurance generally covers the pool itself, too. A replacement cost value by that amount will pool damage insurance claim might fall under one of consequently increase the cost of your home three portions of your home insurance policy, insurance premium because of the new maximum depending on the pool and insurance carrier. We’ve claim limit. broken down and explained all the above-mentioned Some home insurance companies consider a pool to scenarios below. be an external structure - something detached from Does my homeowner’s insurance policy cover the home but does not fall under a policyholder’s personal property. If that is the case, your pool needs damage to in-ground pools? to be declared and listed on the policy, just like a shed The short answer is, yes, it usually does, and we've or any other extraneous structure. You also might seen that it adds a small fee to your premium of need to pay for more pool insurance coverage. In most roughly $50. But in-ground pools create somewhat of policies and companies that we've seen, a home insurance snafu. All homeowners’ policies homeowner’s insurance covers the cost to replace cover your home itself and any extraneous structures external structures up to 10% of the overall policy

replacement cost value. So, if the replacement cost value of your home is $100,000, then your policy likely only covers up to $10,000 in damages to external structures. If you find yourself in that circumstance, you will need to purchase additional coverage for external structures or know that only half the replacement cost of your pool (based on a $20k cost) would be covered.

not a permanent structure and is instead your personal property. Most home insurance policies cover personal property up to 75% of the replacement cost value of the home. So, if your policy was written for a replacement cost value of $200,000, then your home insurer also would cover up to $150,000 of your personal property. In this case, ask your insurance company if there is a claim limit for swimming pools. If there isn’t, then you don’t need to purchase additional The good news is that in-ground pool damage coverage (unless you have an extremely expensive insurance claims are uncommon because there are few perils that might seriously damage them. They are pool in your yard). If there is, and you want the full value of your above-ground pool to be protected, you not susceptible to the wind, water, and fire damage should get extra coverage. that homes are. One example of a claim for an inground pool might be if a tree were to fall on and How does having a swimming pool impact destroy part of it. your liability coverage?

Does my homeowner’s insurance policy cover The liability protection provided by home insurance damage to above-ground pools? policies covers pool-related incidents. This includes Homeowners insurance may cover above-ground pool damage under its personal property coverage, like it would watercraft or firearms. Unlike an in-ground pool, above-ground pools come out of a box, so to speak. They are assembled and can be disassembled if need be and if they can be considered "portable", then an insurance carrier will likely label them personal property. Even if a deck or other permanent structure is built around an above-ground pool, it is the portability of the pool itself that determines its categorization. Accessories used with the pool may also fall under your policy's personal property coverage. For example, your homeowners’ insurance may cover damage done to your pool liner, as long as the damage was due to a covered peril and not wear and tear. For example, say your carrier determines your pool is

any medical expense or lawsuit because of a poolrelated injury or death. This excludes the policyholder and their household, who would need to file a health insurance claim to cover the medical costs associated with an injury or pay out of their own funds. Swimming pools are considered an attractive nuisance, which is something on someone’s property that might attract a child and pose a risk to that child's well-being. The owner of a property with an attractive nuisance, such as a pool, is liable for any child who uses it, whether the child has permission to or not. More than 1,000 children drown in swimming pools in the U.S. each year and many more are injured, according to the Center for Injury Research and Policy. For this reason, the standard amount of liability protection in most insurance policies might not be adequate. Typically, policies include $100,000 of

liability protection, but it is widely recommended that policyholders with swimming pools purchase as much as $500,000. As you can imagine, a lawsuit for the death of a child (or anyone for that matter) can exceed the $100k of protection. You can increase the limit of your personal liability insurance or purchase a separate umbrella policy, which would cover the cost of any liability claim up to the limit of your umbrella policy.

Best insurance companies for homes with pools Among national insurance companies, Allstate provides the most affordable homeowners insurance quotes for homes equipped with a pool. To determine which company has the cheapest insurance rate for a home with a pool, we gathered quotes for a sample $200,000 home in multiple large U.S. cities from some of the nation's largest insurance companies. The quotes were then averaged to arrive at a mean insurance cost for a home with a pool across multiple insurers. Allstate offered our sample home an annual homeowners insurance quote of $2,289.

Swimming pools and unacceptable insurance risks The best insurance companies will cover swimming pools and the liability associated with them, but there are stipulations to the coverage. Whether it is an inground or above-ground pool, insurance companies require them to comply with the laws of the local municipality. Almost all cities and towns require you install a fence to enclose around the pools, the property where they are located, or both. If you don't have a suitable fence, for example, then your carrier will exclude them from your liability coverage. In addition to not being up to municipal code, there are some things that exclude both in-ground and above-ground pools from coverage. It is common for home insurance companies to exclude pools with slides and diving boards - these generally present a higher risk for injuries and medical expenses. Policyholders also must keep up with the maintenance and drain the pool in the winter to prevent damage. Any damage because of neglect on the part of the policyholder will not be covered.

4 Growing Property Management Businesses Share Their Secrets To Success From: appfolio.com Effectively managing a growing property management business requires a lot of patience, flexibility, and perseverance. With dispersed properties and staff, it can be difficult to maintain transparency and keep up with everyday tasks and responsibilities, while continuing to scale your organization. To help you more efficiently manage your properties, daily to-dos, and customer relationships, we reached out to four property management companies to find out their secrets to success. Read on to discover their stories.

Secret #1: Stay Organized While it may seem obvious, organization plays a huge role in the success of your property management business. Disorganization can manifest in many forms, whether it’s a misplaced paper vendor invoice that led to a vendor not getting paid on-time or a voicemail from a resident regarding a maintenance issue that fell through the cracks. Outdated, inefficient systems are usually the culprit of these kinds of mistakes and can end up costing your business. Thomas Toye, Owner of Arthur Thomas Properties, manages over 820 single-family and multifamily rentals. He says having a systemic approach can help you to overcome persistent organizational challenges: “There are so many facets to property management it can be overwhelming and complex to keep up with everything. Each property is like a separate business with its own accounting, tenants, and contractors… and of course owners, too. For a property management company, that can be a lot to keep organized, so a systematic approach with full integration is critical.” One way Toye has been able to stay organized is by going fully paperless and switching from QuickBooks and Excel to a comprehensive property management system to run his business: “…we transitioned to property management software to ensure we had a centralized, cloud-based and paperless system that interlinked residents, contractors, owners, leasing agents, maintenance staff, and administration.”

Secret #2: Automate Routine Tasks Manual, repetitive tasks can eat up a lot of your team’s time, stunt business growth, and lead to employee burnout. Automation can drive efficiency and free your team to focus on what matters most, like growing your business and providing top notch service. President of eHomes of Bakersfield, Jameson Shepherd, says automation has been his secret weapon when it comes to success, “We used to do everything by hand, so going to an automated system has been a lot easier. We went from 350 units to 1,100 units in two years. It’s made a huge difference in efficiency of the company and the overall maintenance of the properties. I can’t imagine getting to 1,100 units without it.” The types of digital tools Shepherd has implemented to digitize and automate tasks include online payments, an owner’s portal, and a paperless accounting system, among others. “The owners portal, online payments, and statements — they make a huge difference and save a lot of time. We have a third of our residents paying online, so it’s just that many less checks to enter – every owner is paperless, so we don’t have to mail out 1,100 statements and checks, “ says Shepherd. “We can also set up automatic paydays for vendors. So you’re never getting an invoice and writing a check, and possibly forgetting to pay somebody,” he says.

Secret #3: Put Your Customers First Property management is not just about being a good salesperson. While you do have to have the skills to attract owners and residents, it’s the strong relationships you build with them that make lifelong customers. The best way to foster these relationships is by putting your residents’ and owners’ needs first and delivering an outstanding customer experience. Kevin Knight, President and Broker of Liberty Management, Inc. believes communication is one of the biggest factors when it comes to better meeting his customers’ needs. With over 800 single-family and multifamily properties spread out across the San Antonio, Texas area, it’s not always easy. However, by adopting modern, mobile communication tools he and his team have been able to provide a better owner and resident experience. “Text messaging and emailing features within our property management software have helped us communicate with customers more efficiently. If we need to reach a customer, texting is the easiest and fastest way to communicate,” he says. “The time savings and knowledge this provides is so valuable. If you’re a sizable business, keeping track of all communication and being able to contact customers quickly is an absolute necessity,” says Knight

Secret #4: Prioritize Mobility In today’s digital world, it’s expected that you should be able to get work done from anywhere. Relying on software like QuickBooks and Excel, along with cumbersome, paper-based processes, make it nearly impossible to conduct business if you’re not in the office — all of which makes it harder for you to do your job effectively and serve your customers. By prioritizing mobility and embracing new technologies, you can handle any request and keep a pulse on your business, whether they’re at the office, in the field, or at home. Sylvia Hill of H.M.S Development, who manages over 450 single-family and multifamily rentals says having a 100% mobile property management system has been a real game changer for her business when it comes to standing out from the competition, and even more importantly, provided more flexibility and a better work/life balance for her team. “My staff is just a click away from our data. This differentiates our company from our competitors. The best part is I can access our data from anywhere, anytime on the Internet — even when I’m on the road visiting my grandkids.” 15

Financial Tips After Buying Your First Home From: Investopedia.com How do you protect your investment in your first home? Despite the relief of finally being there after all the work of finding and buying the property, the work of financial planning and budgeting does not stop once you collect the keys to your new home.

Revisit Your Budget Agent Elizabeth H. O'Neill of Warburg Realty in New York City says it can be daunting to think about establishing a homeowner-oriented financial plan after you've just gone through the buying process, but it's an essential step you can't afford to skip.

"Sitting down and working out a budget will pay dividends," O'Neill says, and your budget All the work you have already done should should thoroughly cover all the costs of owning help the process, of course. You had to a home. That includes your mortgage determine how much home you can afford, pull together funds for a down payment, and payment, as well as any increases in expenses associated with higher utility apply for a home loan. This can be a painful and stressful process. According to a survey by costs, homeowner's association or condo fees, and maintenance or repairs. FREEandCLEAR, 75% of home buyers likened the mortgage-acquisition process to visiting The latter two are a significant consideration if 1 the dentist or undergoing a physical exam. you've recently made the transition from Read our list of what you need to do next to keep the momentum going in securing this key stage in your financial life and building a firm foundation for your future.

renting to owning. Having to fix a leaky toilet or replace a broken window out of pocket can come as a wake-up call if you've never owned a home before, O'Neill says.

According to a Bankrate survey, the average homeowner spends $2,000 per year on maintenance, including landscaping, housekeeping, and minor repairs. That amount, however, doesn't cover larger expenses you may encounter as a homeowner, such as having to replace your HVAC system or roof, both of which can easily surpass $5,000. Tad Hill, founder and president of Freedom Financial Group in Birmingham, Alabama, says that first-time buyers should set up a separate homeownership savings fund to cover bigger repairs. "The price range for these services is not small, so I'd suggest planning to keep at least $5,000 to $10,000 in cash so you have it available when something breaks." You'll also need to leave room in your budget to set aside money for upgrades if you plan to overhaul your kitchen or update the bathrooms. Homeowners spent a median total of $15,000 on renovations in 2019, according to the latest U.S. Houzz & Home Annual Renovation Trends survey. Of the 87,453 respondents, 38% were likely to use credit cards to fund a renovation but paying cash (as 83% did) can help you avoid high interest and finance charges. In addition to avoiding new debt, you should also prioritize paying off any existing debt you have. Eliminating car loan, credit card or student loan payments can free up more

cash that you can funnel into your home savings fund, and it can give you more breathing room in your budget. If you're struggling to make progress with debt due to high interest rates, consider a 0% APR credit card balance transfer offer or refinancing student loans.

Update Your Insurance As a first-time buyer, homeowner's insurance is a must, but there may be other types of insurance you need as well, starting with life insurance.

"Life insurance is like a self-completing plan," says Kyle Whipple, a financial advisor at C. Curtis Financial Group in Livonia, Mich. Insurance is used to reduce risk, and if you pass away, "it's nice to know that proceeds, which are tax-free, can help pay off a mortgage." That's critical if you're married and don't want to leave your spouse burdened with debt.

Life insurance can also be helpful in providing cash flow to cover monthly expenses or pay college costs for your children if you have a family. O'Neill says that, when buying or updating a life insurance policy, you should ensure that you have at least enough coverage to pay off your mortgage and cover living expenses for your family for the first few years after you pass away. One question you may have is whether to choose a term or permanent life insurance policy. Hill says that term life is the least expensive option since you're only covered for a specific term. This type of policy can make sense if you're a first-time buyer and you only need coverage while you still have a mortgage. Permanent life insurance, such as whole or universal life, lasts a lifetime and can offer cash value accumulation, but it can be much more costly. If you're unsure of which to buy, Whipple suggests that you

discuss your options with a licensed insurance broker or agent. Disability insurance is something else to consider. According to the Centers for Disease Control (CDC), 26% of adults in the U.S. have some type of physical or mental disability.3 If an injury keeps you out of work in the short-term or a serious illness requires an extended leave of absence, that could affect your ability to keep up with your mortgage payments. Short- and longterm disability insurance can help protect you financially in those types of scenarios. Whipple says that you may also want to investigate insurance policies or home warranties to help with repair costs, especially if you have an older home. O'Neill recommends looking into whether you can get a discount by bundling homeowner's insurance and other insurance policies together.

great idea but sometimes that starts with tracking where your money is going so you Whipple says that, if your budget's changing know how much you actually need to and increasing after buying a home, it's budget." important not to neglect your other financial goals. That includes saving for retirement. According to a report by GOBankingRates, 64% of Americans are on track to retire broke, and you don't want to be one of them.5

Review Your Retirement Plan

Check your contribution rate to your employer's plan if you have a 401(k) or similar retirement account at work. Compare that with your newly updated budget to make sure that the amount is sustainable and determine if there's room to increase it. If you don't have access to a 401 The Bottom Line (k), consider substituting a traditional or Roth IRA. Buying a home creates new financial Saving an emergency fund for non-housing responsibilities, but with the right planning, you can keep from becoming overwhelmed. related expenses and putting money into Ideally, preparing yourself financially begins college accounts for your kids may also be before you ever buy a home, but even if on your list of goals. Hill says that new you're getting a late start, it's important to homeowners should be aiming to save at least six to 12 months' worth of expenses in make planning a priority. a liquid savings account for rainy days. Whipple says that, if you're struggling to make any progress toward saving after buying a home, you should take a closer look at your spending. "Making a budget is a

From: plymouthenergy.com Unrelenting summer heat can bring out the complainer in all of us. The only thing worse is a friend who replies, “It’s not the heat, it’s the humidity.” No matter how much you might not want to admit it, chances are they’re not wrong. Sure, long summer days full of direct sunlight don’t help, but on those mercilessly agonizing, sweatpouring-down-your-forehead days, humidity is the one to blame. Heat and humidity might be sisters, but they aren’t twins; Because they operate differently, counteracting them requires separate approaches. What works for one might not work for the other, but both can be energy-intensive if you don’t know what you’re doing. How can energyefficient homeowners keep humidity outdoors without wasting power on things that won’t work?

What is humidity? Perhaps you already have a basic understanding of humidity, or the amount of moisture in the air. However, do you know why a humid day feels much worse than a regular sunny summer day? The Massachusetts Institute of Technology says it’s because high humidity levels stop your body’s sweat system from working properly. Pores secrete sweat to naturally cool down a person’s skin as the liquid evaporates into the air. But if the air around that person is already chock full of moisture, there’s nothing for the sweat to vaporize into. Humidity prevents perspiration from performing the only thing it’s intended to do, leaving people damp, 20

uncomfortable and incapable of cooling down. While people could suffer heatstroke from humidity, increased moisture around the house could lead to trouble if left unattended to. If you want to avoid structural damage, you may need to think outside of the box when it comes to energy consumption.

Why the AC won’t do the trick Even though air conditioners soak up a lot of energy in the summer, they’re necessary evils when the weather turns past tepid and into torturous. However, unless you happen to have a top-of-the-line HVAC system already installed, your air conditioner probably can’t control temperature and humidity independently, according to the American Society of Heating, Refrigeration and Air-Conditioning Engineers. Running the air conditioner might cure the immediate symptoms, but it won’t stop the underlying issues. Something is stopping your home from getting rid of excess moisture. A little bit of temporary comfort will cost you big on your next utility bill, and it could distract you from taking action against the real problem.

So what can be done about fixing humidity for good? To curb home humidity, address how moisture leaves the premises, inside and out. Start with the two spots in your home that generate the most moisture: the kitchen and the bathroom. Every time you take a shower or defrost a package of frozen chicken wings, you’re filling the air with extra moisture. Consider installing a ventilation system for these places. Large fans in windows might help in a pinch, but homeowners could accidentally let in more humid weather than they plan on expelling. Additionally, patch up any minor leaks to keep condensation to a minimum. Next, perform a perimeter check and inspect all moisture exhaust systems. Clogs in these drainage ducts could trap humidity in the home’s infrastructure, resulting in rot and mold in the walls and floors. Energy Star believes the worst perpetrators are clothes dryer ducts as well as any and all gutters and downspouts around your home or underneath the foundation. You may have to dislodge an industrial-sized ball of lint with your hands, but a few seconds of discomfort could save your home from a costly renovation. 21

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. If you have difficulty drafting an agreement, online resources, like iPropertyManagement, can help you.

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.

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. Conditions For Rent Increases 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. Know What Types of Pets 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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