Recapping The Year In Hartford
Featuring Our Most Widely Read Articles From Our First 6 Editions
June 2019
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Published By:
FEATURED ARTICLES Publisher’s Message: CTPOA President recaps the 2019 Legislative Session.
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Tenant Screening Concerns: Information regarding Credit Reports and information removed from Scores
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Tech Talk: Why your business needs an interactive, and relevant website .
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Realtor Report: real Estate Investment Broker, Michelle Lorenzetti, shares her due diligence checklist for investors.
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Get Energy Efficient: What is a home Energy Audit? And is it work it? By Adam Polce
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Landlord Q&A By Dave Habberfield
Companion Pets? Take a look at the CT Fair Housing Laws regarding Companion Pets by Bob DeCosmo
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Publisher’s Message Helping Property Owners Since 1994” - Bob De Cosmo
Bob De Cosmo began purchasing and managing rental real estate in 1982 and is a strong voice and advocate for private property ownership right's in the State of 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 De Cosmo Jonathan De Cosmo
The 2019 Legislative session was one wild ride right from the start. At first glance, it appeared that all of housing in Connecticut was under assault. Proposals to create a statewide property tax and allow differential mil-rates were introduced. There was a proposed buyers conveyance tax. Several Bills dealt with concealing criminal records and even proposed erasing records in as little as 3years . Two bills were crafted to convey full civil rights protections to convicts and that proposal drew our attention quickly because it brought into play the phrase … “discrimination against those with public criminal records” and the investigator, mediator and jury was to be the Commission on Human Rights and Opportunities! Other bills introduced the concept of “strict liability” for children’s lead paint poisonings against the current landlord. One of the more amusing ones was a proposal to allow tenants to deduct the cost of their companion pets from the rent they pay housing authorities. However the one that bothered me the most was the proposal that said if you refused to rent to a person with public criminal records, you would be now committing a crime yourself and you could be charged with a Class D Misdemeanor!
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By the middle of March, most of the bills aimed at the housing and real estate our industry would have been dead in other years but no this one! Not only did many bills make it out of Committees that last year would not have been raised for public hearings, this time the Bills targeting the housing industry had in many cases, several co-sponsors. Some blame the growing ranks of the Progressive Democratic Caucus pushing these proposals, and to some degree, that seems correct but what was their agenda? What was know is had these laws passed, many owners of rental property were talking about “getting out of Connecticut, while they still had a chance!” I had a few calls inquiring about how some of my friends were doing in other States and wanted to know who was a good Realtor to list their property with. My typical response was why are you fleeing instead of fighting? There is a lot of good left here in Connecticut but running away often solves little. So like a Phoenix and out of all this rubble rose a movement to oppose these bills and everyone pitched in to help. The end result….We pitched a shut out...every bill that targeted landlords was killed and Hb 7229, relieved property owners of having to detail in the lease in 12-point boldface font if they had sprinklers...now the disclosure requirement will only apply to structures that are required by code to have sprinklers. THE NEXT TWO 1/2 PAGES DETAIL ALL THE LEGISLATIVE ISSUES WE DEALT WITH IN 2019
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Title
Bill Number
Position
AN ACT EXTENDING THE FORECLOSURE MEDIATION PROGRAM AN ACT REQUIRING MORTGAGE LENDERS AND MORTGAGE SERVICERS TO ACCEPT AND APPLY PARTIAL MORTGAGE PAYMENTS AN ACT CONCERNING THE REMOVAL OF SATELLITE DISHES FROM RESIDENTIAL DWELLINGS. AN ACT CONCERNING THE DEVELOPMENT OF A GREEN NEW DEAL. AN ACT CONCERNING THE REMOVAL OF SATELLITE DISHES FROM RESIDENTIAL DWELLINGS AN ACT ESTABLISHING A PILOT PROGRAM AUTHORIZING MUNICIPALITIES TO IMPOSE A BUYER'S CONVEYANCE FEE ON REAL PROPERTY AN ACT ESTABLISHING A TASK FORCE TO STUDY LAWS CONCERNING COMPANION ANIMALS AN ACT CONCERNING A LANDLORD'S ABILITY TO REVIEW CRIMINAL RECORDS RELATING TO A PROSPECTIVE TENANT AN ACT CONCERNING THE CONNECTICUT CLEAN SLATE LAW AN ACT CONCERNING INQUIRIES ABOUT THE CRIMINAL CONVICTIONS OF A PROSPECTIVE TENANT.
HB # 6996
Monitor
HB# 5974
Monitor
HB #5436
Monitor
HB#5002
Monitor
HB #5436
OPPOSE
HB #5254
OPPOSE
HB #6638
SUPPORT
SB #54
OPPOSE
HB #5712
OPPOSE
HB #5713
OPPOSE
HB # 6080
OPPOSE
HB # 6676
SUPPORT
SB # 754
SUPPORT
SB #280
SUPPORT
HB #5839
SUPPORT
HB #7229
SUPPORT
HB #5431
Monitor
HB #6289
SUPPORT
SB # 608
OPPOSE
SB # 686
Monitor
HB #5512
SUPPORT
HB #5425
SUPPORT
HB #5850
Monitor
SB #493
Monitor
AN ACT LIMITING RENT INCREASES IN CERTAIN MULTIFAMILY DWELLAN ACT CONCERNING UNIFORM RELOCATION ASSISTANCE. AN ACT CONCERNING LANDLORD CONSIDERATION OF PROSPECTIVE
AN ACT CONCERNING MUNICIPAL STORAGE OF EVICTED TENANTS' POSSESSIONS. REFERENCES TO FIRE SUPPRESSION SYSTEMS IN RENTAL AGREEMENTS. AAC A LANDLORD'S DUTY TO PROVIDE NOTICE OF FIRE SUPPRESSION SYSTEMS IN RENTAL AGREEMENTS. AN ACT CONCERNING THE RECOMMENDATIONS OF THE FAIR HOUSING WORKING GROUP AN ACT REQUIRING REASONABLE ACCOMMODATIONS FOR CERTAIN PERSONS LIVING WITH AN EMOTIONAL SUPPORT ANIMAL AND ESTABLISHING PENALTIES FOR MISREPRESENTING THE STATUS OF SUCH ANIAN ACT CONCERNING THE IMPROVEMENT OF RENTAL UNIT SAFETY. AN ACT CONCERNING HOUSING ASSISTANCE AN ACT PROHIBITING THE MISREPRESENTATION OF A DOG AS A SERAN ACT REQUIRING THAT REGISTERED HOME IMPROVEMENT CONTRACTORS MAINTAIN LIABILITY INSURANCE AN ACT REQUIRING HEALTH INSURANCE COVERAGE FOR THE PURAN ACT REQUIRING HEALTH INSURANCE COVERAGE FOR SERVICE ANIMALS. 6
Title
Bill Number
AN ACT CONCERNING THE USE OF SERVICE ANIMALS. AN ACT CONCERNING THE AUTHORITY OF A PROBATE COURT JUDGE TO EVICT A TENANT WHO UNLAWFULLY OCCUPIES REAL ESTATE THAT IS AN ASSET OF AN ESTATE AN ACT CONCERNING A CLEAN SLATE THROUGH ERASURE OF CERTAIN AN ACT PROVIDING LEGAL COUNSEL TO ELIGIBLE TENANTS IN A SUMMARY AN ACT CONCERNING THE EXPUNGEMENT OF CRIMINAL RECORDS. AN ACT CONCERNING A CLEAN SLATE IN THE CASE OF A CRIMINAL RECORD. AN ACT CONCERNING THE ELIMINATION OF THE COMMISSION ON HUMAN AN ACT CONCERNING A PROPERTY OWNER'S LIABILITY FOR THE EXPENSES OF REMOVING A FALLEN TREE OR TREE LIMB A TENANT MAKE USE AND OCCUPANCY RENT PAYMENTS TO A LANDLORD WHEN THE COURT HAS PERMITTED A STAY OF EXECUTION OF JUDGMENT IN A SUMMARY PROCESS ACTION. AN ACT CONCERNING THERAPY PETS IN PUBLIC BUILDINGS. AN ACT CONCERNING ERASED CRIMINAL RECORDS AND THE REVIEW OF AN ACT CONCERNING A CLEAN SLATE IN THE CASE OF ERASED CRIMINAL AN ACT CONCERNING CRIMINAL LIABILITY OF LANDLORDS FOR CRIMINALLY AN ACT CONCERNING THE ADOPTION OF THE UNIFORM PROTECTED SERIES AN ACT ELIMINATING JUDICIAL DISCRETION IN EXTENDING A STAY OF EXECUTION OF JUDGMENT IN A SUMMARY PROCESS MATTER AN ACT REQUIRING THE PAYMENT OF DISPUTED RENT PAYMENTS TO A AN ACT CONCERNING THE ENTRY OF A MONEY JUDGMENT IN A SUMMARY AN ACT PERMITTING A LANDLORD TO PROHIBIT A PERSON FROM SMOKING MARIJUANA IN THE LANDLORD'S RENTAL UNIT.
AN ACT CONCERNING THE ASSESSMENT OF CERTAIN FEES BY BUILDING OFFIAN ACT ESTABLISHING A MAXIMUM PENALTY FOR VIOLATIONS OF MUNICIAN ACT CONCERNING THE ASSESSMENT OF REAL PROPERTY USED FOR RENTAN ACT CONCERNING AS OF RIGHT MULTIFAMILY HOUSING ZONES. AN ACT CONCERNING THE STORAGE OF EVICTED TENANTS' POSSESSIONS. AN ACT CONCERNING THE ISSUANCE OF WRITTEN WARNINGS PROVIDING NOTICE OF VIOLATIONS OF MUNICIPAL REGULATIONS AND ORDINANCES.
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Position
SB #345
SUPPORT
SB #349
Monitor
SB #353
OPPOSE
SB #652 SB #691 SB # 803
OPPOSE Monitor OPPOSE
HB #5223
Monitor
HB #5533
Monitor
HB #5731 HB #6699
SUPPORT Monitor
HB #6701
Monitor
HB #6907
OPPOSE
HB #6678
Monitor
HB #5217
SUPPORT
HB #5730
SUPPORT
HB #5733
SUPPORT
HB#5875
SUPPORT
HB #6512
SUPPORT
SB #514
Monitor
SB #516
Monitor
HB #5126 HB #5273 HB #5742
SUPPORT Monitor SUPPORT
HB #6347
OPPOSE
Title AN ACT PERMITTING MUNICIPALITIES TO FINE OWNERS OF BLIGHTED PROPAN ACT CONCERNING THE STORAGE AND AUCTION OF EVICTED TENANTS' POSSESSIONS. AN ACT ALLOWING DIFFERENT MILL RATES FOR RESIDENTIAL AND COMMERCIAL PROPERTY. AN ACT CONCERNING MUNICIPAL TAX APPEALS AND CONTINGENCY AGREEMENTS. AN ACT REGULATING SHORT-TERM RENTALS. AN ACT PROHIBITING THE SALE OF GOODS AND USE OF BUILDING MATERIALS CONTAINING ASBESTOS. AN ACT CONCERNING USE OF A GUIDE DOG OR ASSISTANCE DOG. AN ACT PROTECTING RESIDENTS OF SOBER LIVING HOMES AN ACT ALLOWING FOR THE CERTIFICATION OF SERVICE DOGS USED BY INDIVIDUALS WITH MENTAL HEALTH NEEDS. AN ACT REQUIRING CARBON MONOXIDE DETECTORS IN BUSINESSES. AN ACT CONCERNING MULTIPLE BACKGROUND CHECKS ON INDIVIDUALS. AN ACT REQUIRING SPRINKLER SYSTEMS IN NEWLY CONSTRUCTED TOWNHOUSES. AN ACT ADOPTING THE INTERNATIONAL PROPERTY MAINTENANCE CODE AN ACT ESTABLISHING FIRE DEPARTMENT INSPECTION REPORTING REQUIREMENTS.
Bill Number
Position
HB #6351
Monitor
HB #6560
Monitor
HB #6745
OPPOSE
HB #6123 HB #6937
SUPPORT Monitor
SB #47 SB #662 HB #5136
Monitor Monitor Monitor
HB #5653 HB #5921 HB #6159
Monitor Monitor OPPOSE
HB #6571 HB #6955
Monitor Monitor
HB #6350
Monitor
Adrianne G. Angel CT, FL & NY Licensed Broker Pro Property Management 1087 Federal Road #7 Brookfield, CT 06804 8
The Watering Down of Credit Reports
Some Judgements and Liens Removed By: Bob DeCosmo,
As
unless it contains the consumer’s Now, with that business drying up, name, address, and either Social Se- the company is marketing its own Liens and Judgments Report to a result of litigation curity number or date of birth. lenders and screening services. started by the Attorney Generals of Most liens and judgments don’t inseveral States, all three bureaus, Ex- clude even three of the four pieces Because LexisNexis is not a party to perian, Equifax, and TransUnion of identifying information as many the credit bureaus’ settlement, it is still free to sell that information, said have removed tax liens and civil states do not gather all this inforjudgments from their credit reports mation and in some states, it would Ankush Tewari, a senior director with LexisNexis Risk Solutions. The where incomplete information exactually violate privacy laws. company can accurately link people ists. Bankruptcy is now the only to their public records, even without public record information that is identifying information like a Social “Bottom line for landlords Security number, with an error rate collected routinely by the national is they can no longer soleof less than 1 percent, he said. credit reporting companies. ly rely on a credit report In 2015, the credit bureaus settled Bottom line for landlords is they can for deciding if their next no longer solely rely on a credit rewith the New York attorney general tenant is going to be a port for deciding if their next tenant over disputing errors on consumers’ good risk, you need to dig is going to be a good risk, you need credit reports. This settlement was deeper and consider comto dig deeper and consider comprefollowed by a 6 million dollar, 31hensive consumer reports to screen prehensive consumer restate agreement to change the way for all risks. the credit reporting agencies handle These are major changes in the standards for reporting public recdata and investigate disputes. The ords and it is estimated will impact multi-state settlement led to an agreement from the bureaus to re- as many as 15 million consumers. This is a huge win for consumers move non-loan related collection who have often tried in vain to get items such as gym memberships, inaccurate information removed library fines, and traffic tickets from credit reports. The Consumer Financial Protection As public records disappear from Bureau issued a report in March 2017 citing problems with credit re- the big bureaus’ credit reports, other data providers are eager to step in port accuracy, specifically the quality and fill the gap. LexisNexis Risk Soof the credit data in their reports. lutions has for years gathered public Effective July 1, 2017 the credit bu- records information from about 3,000 jurisdictions around the counreaus no longer report public rectry and sold it to the credit bureaus. ords like judgments and tax liens 9
present on local business listings – backlinks will give your website more “juice”, which will help you to get to the top of search results.
Why Your Business Needs a Website
Increase Your Reach Do you have a loyal group of customers that visit your site consistently and frequently? I am sure you do. But what if you could increase the number of new visitors – would you do it? And further, how would you capitalize on these new visitors?
By: Lukasz Pawlowski Head Programmer, Tenant Tracks In our last article, I guided you through the most important elements of a website. However, we haven’t talked about, possibly, an even more important point: Do I need a website for my business? While there are multiple reasons behind different types of websites, we will focus on one case: Why every business simply needs a working website?
A website provides you with a whole range of tools, that allow you not only to reach new people, but also to learn more about your clients through statistical information which is gathered when they visit your site. Statistics can provide you information, that customers would never reveal to you directly – and it allows you to focus on the type of people you want to reach to increase your chances of conversion. For example, if you learned that male clients in their late 50s living Be Found! within a 20 mile radius of Berlin are the main consumers of your product, wouldn’t you gear your marketing While there are efforts towards this type of client? It is vital to undermany ways you can stand your audience, who is buying your product or reach your potential customers; such as phone, email, or local newspapers – using your services as it will save you time and money the internet allows you to reach almost anyone around in the long run when creating marketing materials. the world. The easiest way for your potential customers poorly put together website. By crafting a professional to find you is to search for a certain kind of service in a website with proper information and easy to use funcspecific area. tionality you have just increased the odds of converting customers and event more importantly you have presented yourself as a quality company that operates with the customer in mind. I think, that choice is obvious here, take your time create a great website and you reap the benefits.
You must be sure, that your business is listed in the proper area and in the proper category to be easily found. It also must be described to Google in a way, that it will recognize your position and specialty properly. It’s also a good thing to ensure , that you are 10
Show Off Your Professionalism
spamming here – I mean, that your logo should be known and users should be able to find you in different Websites can be good or bad. You need to consider what places, like Facebook, Twitter, YouTube, etc. – not only a customer’s impression is when they visit your website. Google. This way you also gain more credibility. Additionally the quality of your website is in a way a representation of the quality of service or product you pro- It allows you to do one more thing: ensure users in consistency in your business. By sending the same type of vide. Creating a website with incomplete information, missing links and non user-friendly design you are telling message via different media you are telling your users your customer “Here’s a website but I don’t really care.” that you know what you are doing. This message can be Thus, a potential customer may not use your service or different based on your business model and marketing buy your product because of a poorly put together web- strategy. You can see that giants are doing this. If cars
site. By crafting a professional website with proper information and easy to use functionality you have just increased the odds of converting customers and event more importantly you have presented yourself as a quality company that operates with the customer in mind. I think, that choice is obvious here, take your time create a great website and you reap the benefits.
Building Brand Recognition Website and social media allows you to make one more important thing: become recognizable. And I don’t mean 11
could talk, then Aston Martin would say: “Our cars are not cheapest, but those are luxury cars” – while on the other hand Ford: “Maybe I am not luxury car, but I get the job done!” I hope that by this article I made it easier to understand why having a website for business is important, and essentially vital. You can read more about websites and Internet technology next month on TechTalk – stay tuned!
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What’s Happening Near You? The Statewide Events and Meetings calendar is a resource for local landlords and property owners to meet up, network and grow your real estate opportunities. Stay Tuned for Updates for July
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Tenants Owe You Money? Call The Landlord Collection Agency Place Your Tenant ‘s Debt Into Collections Contact CTPOA : 1-800-369-6153 to learn more
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the tenant. I want to know who is behind & how much, who is about to get evicted or if an eviction is already in process - how far along is it. Are they month to month or how far along into the lease. The whole reason investors buy multi unit properties is for income! So what good is it if there is no income or if it's represented as if there is income and buyer finds out later there isn't???? NEVER have I worked a deal where the income was 100% as it was represented. Sad but truth! Many times there are no records - and that is really tough because it will make the funding process challenging as well! Peel that onion and peel it hard! The After 15 years of brokering and hundreds of closings on positive is once you find out what Michelle L multi unit and investment properties here in CT there is the real story is you negotiate - because no no story that truly shocks me anymore! The best learn- buyer wants headaches!!!! This is not the Investors Co ing comes from experience! And, of course the many experience I want my people to have. Plus, Bristol, colorful stories I have been told by my investors. Unmost sellers don't want to start over with Investme fortunately pitfalls are part of the turf when it comes to someone else all over again either - so use purchasing income producing properties, and many of that to your advantage! (860) 335 (860) 51 those findings absolutely SHOULD be used as negotiaThere are many ways to work things out tion points - BUT lessons learned are key! To help E-mail : MichelleLore my investors, I have compiled a due diligence checklist couple of my favorites are an estoppel agree- Website: http://inves based on every learning and closing (and lost deals too!) ment tenants sign or to escrow funds after over the past 15 yrs. Here and now I will share with you close. This protects the buyer because if in fact seller does have an eviction in process my top three! And supporting evidence why I prioribut not yet completed, or lost rent because tized these as my top three! someone behind & they claim person catch-
The Investors Due Diligence Checklist
1. Evidence of Rents Collected
ing up, etc. funds can be put aside in
Copy of leases are not enough! I want to see the money going into the accounts, or a copy of a receipt. This also goes whether it is paid by subsidy, or some portion is subsidy and some portion is paid by 16
shop, dry cleaner, gas station, etc. - any possible environmental issue could be a future litigation if something happens! Totally a headache to you if you own property next door that gets affected - not good!
3. Open
Permits, Violations, Last Fire Inspection
2. Confirm What You Are Buying
The most frustrating story on this one was a six unit building in Hartford where seller pointed out to us during showing where the parking was - BUT once the property conveyed we found out the parkLorenzetti ing lot was owned by the attorney next door! Seller then claimed he paid $300 a onnection CT month for parking after the fact! We were CT 06010 never given a bill as part of due diligence, ent Broker none of the disclosures or listing had this 5-0681 cell info. AND neither the appraiser OR the 6-0180 fax attorney caught it either! This was a huge enzetti@sbcglobal.net problem because the entire value changed storsconnectionct.com/ once the parking lot was no longer part of the equation! Really, this should have been communicated by the seller, AND identified when appraiser and attorney confirmed metes and bounds as part of searches and reconciling against town documents. Bottom line the question needs to be asked WHAT are you buying - the boundary lines are important especially w/ parking in city areas - also make sure you know if property in a historical district, etc. because it will cost more if you do work as it needs to comply w/ historical district requirements. What's around counts too - being next door to a car auto-body
Call and/or visit city or town hall - your broker should do this. You need to know ASAP if you are inheriting a violation or even possible condemnation! Many times the records are not updated when they should have been and its an administrative issue. But, bottom line - if the seller has any open permits or violations they need to be closed and taken care of before property conveys - UNLESS its something a buyer WANTS to address on his own because he does not want to lose out on the property - I have had this happen many times as well. Sometimes you have to do what you have to do in order to be competitive but just make sure its a smart decision! Its also prudent to ask when was the last fire code inspection. All towns have different requirements. Bottom line I do not want one of my buyers having to deal with installing fire doors, etc. if that should have already been done by the seller because these requirements can become VERY VERY EXPENSIVE!
I hope you found this information useful! If you would like a copy of my full due diligence checklist feel free to shoot me a text on 860-335-0681 or an email to: michellelorenzetti@sbcglobal.net
Last, I also have over 5000 CT local/east coast investment buyers on my list so if you have a property you
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WHAT IS A HOME ENERGY AUDIT AND IS IT WORTH THE MONEY? By: Adam Polce Energy Auditor - HES Contractor
Is a Home Energy Audit and Home Energy Assessment the Same Thing? Yes and no. Typically an assessment is a visual inspection that only evaluates items that do not require any testing or diagnostic equipment to determine it’s efficiency rating, such as, insulation levels, window characteristics and obvious gaps and cracks that one could assume causes drafts or air leakage. Often these assessments are not performed by individuals with extensive training or certifications.
A home energy audit is an assessment that digs deeper into testing and relies more heavily on diagnostic equipment and training than visuals. A real home energy audit would include testing the heating system, hot water heater and other combustion appliances for carbon monoxide levels, draft and gas leaks before attempting to make recommendations for improvements. They are also typically performed by trained and certified auditors with years of experience within the industry which makes it much easier to rely on their recommendations.
What is the Cost of a Real Home Energy Audit? Here in Connecticut, each Eversource or United Illuminating customer is eligible for an energy audit for a small copay through the Home Energy Solutions program. Oil and Propane heated homes cost $174 and natural gas and electrically heated homes cost $149. If you are wondering why in the world you would pay anyone to tell you to insulate your attic or caulk your windows when it’s common sense then just hold on and keep reading. The audit program through Eversource and United Illuminating includes a load of work that is performed simultaneously with the audit. During the 4-6hr audit, CERTIFIED, technicians will install LED lightbulbs, new showerheads, faucet aerators and pipe insulation. On top of all that they spend quite a bit of time sealing the drafts around the house they found during the testing process. Not one of these things cost you a penny. If
These assessors can just look at items they are trained to spot and determine if its good or bad without even knowing the cause and effect relationship of fixing these issues which could cause larger issues in the home if used. While these are easy and important items to spot and definitely on the short list of improvements in any home there is way more to evaluating a homes efficiency than just these items alone. 18
1-10 scale, 10 being the best. What scared most people when the tool launched was the fear of a bad rating. Of course, having a low score is not desirable but boosting it is way easier than you think. A good example I can share is a home I purchased late last year. The initial rating came in at 3 out of 10. Having a new high efficient boiler and on demand hot water heater installed just prior to my purchase and windows only a few years old I was really surprised it scored that low. I read through my report and to my surprise I had a very detailed list of improvements that would bring my rating up to a 9 out of 10! Insulating the attic and exterior walls and professional air sealing would be the ticket.
About Adam
Of course, being in the industry, I knew that my investment of less than a couple thousand would not only improve my homes score but would also save me a substantial amount on my monthly utility bills. With the lack of education and fear of throwing a wrench in the real estate industry its no wonder that realtors were too afraid to embrace the scores.
Adam has worked within the energy auditing industry since 2012. He created Maximum Home Performance in 2015 with an intention to give homeowners a more personalized approach to home improvement. Many of Adam’s projects are in collaboration with realtors, builders and large multifamily and commercial building owners.
What Is the Next Step? There are many contractors that perform home energy audits but not all of them are approved vendors of your utility company. Choose an auditor that works through the Home Energy Solutions program and performs the work themselves so to avoid subcontractors and thirdparty issues. Visit www.energizect.com to find a local contractor near you or call 1-877-WISE-USE to speak to a representative that can help you personally.
Adam Polce Energy Auditor- HES Contractor Maximum Home Performance LLC 1-877-827-9242 If you’re still on the fence then why not throw in a heap of rebates that can be applied to insulation, replacement windows, wifi thermostats, heating systems, hot water heaters, central air, ductless heat pumps and more. In the end, you get a heck of a lot more than you pay for followed up with lower monthly utility bills.
But Wait…There’s More! One of the most important things that homeowners, realtors, and tenants can all agree on is the Home Energy Score. The Home Energy Score was developed by the Department of Energy to give an accurate energy efficiency rating for homes. Similar to the MPG rating of your car, the Home Energy Score rates your home on a 19
Are you having issues with bad tenants, government agencies or tired of the proposed laws targeting your profits? Have you ever considered organizing a local property owners and investors group in your area? CTPOA is looking for quality individuals with great reputations that can become local leaders in their real estate market
We will provide: start-up funding,
association management, social media postings, mass marketing legislative research and advocacy guest speakers for educational events
Seeking local leaders for New London/Groton, Naugatuck Valley and Litchfield County. Interested? Contact us 888-610-4710 info@ctpoa.com
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full purpose of the eviction laws, also known as summary process, in Connecticut. In Connecticut, eviction laws are designed as a remedy for a landlord dealing with a noncompliant tenant. The goal may not always involve removing the tenant from the leased premises. In other words, landlords are encouraged to start an evictionaction as soon as a tenant has violated the lease. The most common violation is nonpayment of rent.
To Evict Or Not To To Evict Or Not To Evict? Evictions in Connecticut are not just for kicking the tenants out…. By: Attorney Venoal M. Fountain, Landlord Attorney - Hirsch, Levy & Fountain, LLC
Connecticut property owners continue to struggle with the term “eviction.” In fact, most landlords retain an attorney for legal representation once there has been a definitive decision that “the tenant must go!” After several years of practice in the area of landlord-tenant law, it has become quite apparent that most landlords are uninformed as to the
Attorney Venoal M. Fountain Hirsch, Levy & Fountain LLC
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However, additional violations may include, but are not limited to, holdover tenants (those that fail to vacate the premises at the expiration of the lease); unauthorized occupants and/ or pets; nuisance; damage to the premises; etc. In an effort to avoid a vacant property, most landlords decide to “warn” the tenants through verbal communications self-drafted email, texts or letters. Although the landlord’s efforts are noble, and may very well put the tenant(s) on notice, in most cases, said efforts are futile and provide little or no protection for the average landlord. For example, a landlord may elect to place a delinquent tenant on a payment plan. Initially, the tenant may (in some rare cases) make good of the plan. However, under this scenario, there is no remedy to the landlord should the tenant fail to make a payment, or pay in full according to that plan. Does the landlord have the legal right to go to the premises and kick the tenant out? Change the
premises for the tenant’s failure to For the purposes of this article, the comply with the payment plan? The professional tenant is the tenant that answer is NO! is familiar with Connecticut eviction law, intends to (and in fact will) vioIn all honesty, and with a humane late the lease agreement, and exploit point of view, life happens to every- the use of Connecticut eviction laws one. This article is not intended to during the process. The tenant may preclude landlords from entering remain in the leased premises rent into short term payment plans. There free until a landlord takes legal acare good people, that are good ten- tion. Continuing with the nonpayants, and there may be a legitimate ment scenario above, a landlord that reason for delinquencies in rent pay- delays in starting the eviction process ments. However, if the payment may be seriously affected by the proplan fails, the only option is to begin fessional tenant. At face value, evicthe eviction process. The landlord’s tion laws in Connecticut are probest protection is with a court order, scribed to be fair and equitable for also known as a Stipulated Judgment. both the landlord, as well as the tenIn order to obtain a Stipulated Judg- ant. However, and in practice, the ment, there must be an eviction or landlord is greatly prejudiced. To illustrate, if a landlord obtains a judgsummary process action. ment for possession for a tenants’ Stipulated Judgments are a tool that failure to appear in court (or for failwork well for landlords, as well as ure to appear at trial), the tenant has the well-intentioned tenant. In sum- a legal right to request a “Motion To mary, these agreements are enforcea- Open Judgment” within five (5) days ble court orders that ensure compli- from the judgment date. In most ance. The landlord with a Stipulated cases, the request by the tenant is Judgment eliminates the scenario granted by the court, or at minimum mentioned above in that it provides a a subsequent trial/hearing date is remedy for the landlord. At the dis- scheduled which costs the landlord cretion of the landlord, a tenant that at least another two weeks in time defaults on a payment specified with- and money. in the Stipulated Judgment may be physically removed (evicted) from Evictions in Connecticut are a landthe leased premises fairly quickly. lord’s best tool for compliance. AdStipulated Judgments are also useful ditionally, it minimizes the landlord’s in persuading compliance with other loss when dealing with the profeslease violations such as unauthorized sional tenant. While the time frame occupants and/or pets, nuisance is- varies in different areas of the state, it generally takes 4-6 weeks to obtain sues, etc. a court hearing and formally execute Landlords that a Stipulated Judgment with a tenant. delay in starting Due to these varied times frames, the eviction pro- landlords that make the decision to cess may get evict as soon as there is a lease violaburned by allowing tion (typically nonpayment), are most the “professional protected under Connecticut law. tenant” to stay in This decision to evict may not inpossession volve actually removing the tenant of the from the leased premises. Rather, the eviction may serve as a tool for leased timely payments to the landlord, sepremises. 24
cured housing for the tenant, compliance with the lease agreement, etc. Landlords are encouraged to consult with an attorney that specializes in evictions in order to understand and execute the most favorable strategy once the lease has been violated.
Q&A With A
Landlord
When I first started looking into rental property, I was attracted to residual income which keeps comI bought my first rental property in ing even if you're not working for 2006 at the peak of the market. It it. I was wrong. There’s nothing was a single family house, and I had residual about being a landlord. It no idea how to do the math, but they is a job that requires as much work were giving away mortgages so I as any other job. It has rules that signed up. I lost a fortune on it. make less sense than your job. I don't even have to know what you What city was it in? do to make that statement. It reWaterbury, I bought it because I quires a combination of book knew the owners and thought I smarts, street smarts, people skills, could get a good deal. and a thick skin that no other job I know of requires.
When did you buy your first rental property?
Do you own property in more than one city?
I do, I currently own real estate in Bristol, Terryville, Meriden, Waterbury, Naugatuck, Manchester, Windsor, East Windsor, Hartford, Middletown, Southington, and Farmington.
Do you own property in other states? I have one rental property way out in upstate NY that had some special circumstances, and I did some land banking in Arizona, but there’s no house on that land.
How would you describe your job as a landlord compared to other jobs?
David Haberfeld is an active real estate inIf you had to write a vestor and landlord help-wanted ad seeking someone to replace you, that manages over 100 what would that ad say? units and also had over To be qualified you must be skilled at being a full time adult babysitter 30 closings in 2018. Dawho has prior experience with real vid is very active on Faestate, property management, construction, QuickBooks, negotiacebook and can be tion, human resources, government found in numerous bureaucracy, banking, legal matters, philosophy, psychiatry, and crimiposts in various groups nal matters. Must also be willing to work long hours, able identify a that focus on real esdrug addict from 10 feet away, able tate. He owns and opto tell when a contractor has no idea what they're doing and is erates a company learning on YouTube, have thick skin, not lose sleep over being 25
What’s the hardest thing more than I could ever calculate. about owning rental Describe your relationproperty? ship with your tenants.
possession of my apartment, but of course I lost plenty of money in the process. Those two people were probably the most difficult to deal with that I've come across so far, but The hardest part is managing people, I have about 50% of my tenants as they're far from alone. I have quite a from your tenants to your contracFacebook friends. Most of us have a few of these stories to tell! tors. People don't always do what good relationship. There are others you want them to do, or what you that I hope they get hit by a bus, but think they'll do. People have very What advice would you only the really bad ones. I am small different priorities than you think enough that I can have a relationship give to others before they they should, and there are many bad with my tenants. If I was larger, I buy their 1st property? people in the world. As a landlord may not have the luxury of knowing Find a mentor, have someone walk you get to see it more often than them personally, but for now. I know you through the property, from purmany other careers. most of them personally. I also have chase, to analyzing the deal, to tenant an office staff that deals with them What is the easiest thing face to face regularly and keeps the screening, to fair housing law, to financing, to evictions, and have them about owning rental lines of communication open and available to ask questions to. This is our relationships as positive as possiproperty? worth more than can be calculated ble. with money. The easiest part about owning a rentEvery business is a relationship busial property is the great tenants, the 75% or better of tenants that rent a ness. What would you do differunit, pay their rent, only call when ently now if you had the something is really wrong, and who What is your worst are a pleasure to deal with. “Tenant from Hell” story? ability to change the 75% of them fall into this category. If I was to pick one, I'd say my ten- past? 20% have problems or issues that ant from hell would be a tenant I’ll There are a few things; make them require more work and call Mr. Jones who was a tenant that cause more headaches, but are still I had to evict because I just evicted 1. I would have found a mentor when I started. good people, and still worth working a tenant named Al was a hot head with, and 5% are horrible human and we had a falling out so I evicted 2. I would have learned how to anabeings. him. When I evicted Al, he handed lyze a deal and not jumped into the keys to Mr. Jones who was a felthe market in 2006. What was the biggest on rapist and drug addict before the Marshal moved Al out. Al texted me 3. I would have pushed harder and mistake you made as a and told me to enjoy my new tenant. bought more during the dark landlord? I had to evict again. However, betimes of 2009-2012 when properThe biggest mistake I made as a land- cause I never took control of the ty was really cheap, but everyone lord was not seeking out a mentor apartment, I evicted Al again too, else told me to stop buying bewhen I started. It didn't occur to me and put 2 evictions on his record. cause the market was bad. (I to seek out someone else who was That made him furious. We had sevbought, but could have bought successful doing what I wanted to be eral unpleasant interactions during more) doing, and ask them if they'd be will- the process, in court, and outside of ing to teach me. court. In the end, I won and received 4. I would have gotten involved That mistake in my mid 20s cost me 26
harder for us to screen (purge court records after 3 years on the State website) or keep out felons (ban the box), or keep out low income (security deposit guarantee), or keep out pets (fake service and emotional support animals covered by CHRO), what they should be doing is making evictions easier, and making screening easier. If a landlord in CT could evict a person in 30 days instead of 60 or 90 or 180 many of us might take a chance on that felon, or that person in recovery, or that person with bad credit, or that person who is down on their luck and just needs a landlord to give them a chance, which would reduce homelessness and create 2nd chances for many, but we can't, because too many people in those categories fail us and we are forced through very expensive evictions. I will continue to be a landlord in CT, but the progressive agenda will continue to force rents to rise, making them unaffordable to more and more of our population. Our future is reasonable as far as a business, and demand will remain high, but plan on people thinking we're the bad guys with no end in sight because rents are so high....but it's not our fault.
The
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Fair Housing Law… Is it time to take a look at Companion Pets? By: Bob DeCosmo, President CTPOA
O
n April 11, 1968 President Lyndon Johnson signed into law Title VIII of the Civil Rights Act of 1968, commonly known as the Fair Housing Act. The legislation was advanced as an ambitious and progressive vision to eliminate housing discrimination and residential segregation in this country. In 2018, Fair Housing was celebrated across the county as the nation recognized the 50th year anniversary of greement on what constitutes an actual need for the Companion Pets/Emotional Support Animals. Here the law’s existence. in Connecticut all three types of animals are treated It can be said that much has been accomplished in the same and protected by the our Fair Housing the past 50 years but also more lies ahead to accom- Laws and the American with Disabilities Act. plish. While there is no disputing the need for this mighty legislation and its enforcement, often times We would like to see this year’s General Assembly some unscrupulous people take advantage of well- engage in a real discussion about this topic in order intended ideas and concepts as well. to provide Connecticut’s real estate community answers on how to handle multiple pet requests, breed Here in Connecticut we have witnessed many abus- restrictions on dogs and insurance policy exclusions, es of the Fair Housing Laws by several individuals excessive noise from unattended pets and what acthat only see Fair Housing enforcement as an eco- tually constitutes a pet; is it a dog, cat or a farm aninomic opportunity for unjust enrichment and claim mal! “discrimination.” They then proceed to use the system in place and hope to extract monetary settlements from businesses and landlords when in fact no discrimination actually occurred. The reason is it’s easier and often more practical to pay a settlement than hire Lawyers and fight to defend and clear your reputation and good-name from a frivolous accusation! In 2019, I believe one of the most difficult issues impacting Connecticut’s real estate professionals is the claim for a “Companion Pet or Emotional Support Animal” and what actually justifies that claim. While the need for Service Animal such as seeingeye dogs is well understood, currently there is disa29
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