In This Month’s Edition Rental Application Fraud In The Digital Age
Mortgage Activity Hits 22-Year Low As Rising Rates Bite Housing Market
8 Important Legal Tips For Landlords and Property Owners
Inflation, Cost of Living Top Issues For Connecticut Voters
June 2022
Published by:
Table of Contents Publisher’s Message A Message From Bob DeCosmo, President Of CTPOA
News And Views From The Capitol Inflation, Cost of Living Top Issues For Connecticut Voters
Realtor Report Mortgage Activity Hits 22-Year Low As Rising Rates Bite Housing Market
Insurance Insights Does Homeowner Insurance Cover Rental Property?
Property Management Tips & Tricks Summer Maintenance For Your Rental Property
Helping Property Owners Since 1994
Published by: CTPOA
CTPOA’s Mission:
Financially Speaking Inflation Rates Are Breaking Records. Here’s What Your Need To Know
Get Energy Efficient Spring & Summer Energy Saving Tips
The Legal Corner 8 Important Legal Tips for Landlords and Property Owners
Vendor Spotlight ServiceMaster Restore, Specializes In Restoration Services For Your Property!
Tenant Screening Tips & Tricks Rental Application Fraud In The Digital Age
Educate our members on the Best Practices.
Increase profitability. Provide access to Core Services. Advocate for Property Owner Rights.
Meet Our Team: Bob DeCosmo Carmine DeCosmo Melissa DeCosmo Paul Jenney
Chelsea Sayegh
PO Box 4795 Waterbury, CT 06704 800-369-6153 info@ctpoa.com
By Bob DeCosmo, Advocate for Property Owners Concealing Eviction Records - Action & Reaction “Real-Time” Tenant Payment Data Now Being Captured Senate Bill #200 was introduced in this year’s legislative session and it limited a rental agent and landlords’ ability to view eviction records to just one year. If signed into law, it would have a significant impact on rental property and make the ability to provide stable, safe and decent housing more difficult. It would have also caused a hike in rental prices as owners would try to mitigate future collection losses.
Last week, our programmers completed the process to allow all our clients to upload documents proving they own rental property and provide us with a photoID so we know its them. Once we get the documents, our TenantTracks clients can then upload rental payment info on their tenants including; • • • • • • •
notice to quit served summons and complaint served late payment partial payment notice of lease violation cash-for-keys no-payment and no action taken.
TenantTracks, a rental screening company I manage opposed Senate Bill 200 and we also decided to get prepared for such a proposal to become law in the future, like in New York. The best way to help make our tenant screening reports better is to capture “real -time” tenant rental payment information and provide In addition to rental payment performance, we now this data in our background checks. allow all users to enroll their tenants into monthly rental payment reporting to TransUnion at no cost. Landlord groups have often talked about creating Timely rental payments will help increase a tenant’s lists of non-compliant renters (blacklists) and want to credit score and late payments will potentially hurt exchange this information amongst themselves. This the renter’s score. is illegal as it offers no ability for a tenant to dispute the information and their data could be subjective as Necessity being the mother of invention and well. Example, the tenant was a messy housekeeper. eliminating eviction records from a landlord’s view The problem with subjective data is who is setting the was a wake-up call and made us take a proactive standard, you, me or a health department official? approach to more accurate tenant screening, which is essential to operating rental property . We will be Any tenant payment information used as part of a consumer report for tenant screening must be factual making presentations to landlord groups and and objective. We now have a created way of making individual owners in CT, encouraging them to report this valuable information to all landlords and housing this rental payment information to TenantTracks so they and other housing providers can make better providers via TenantTracks. informed leasing decisions in the future.
04 / Publisher’s Message
Register at CTPOA.com/events
Inflation, Cost of Living Top Issues For Connecticut Voters From: cbia.com Inflation and the state's high cost of living
state taxes are too high and 89% believe
are the top concerns for Connecticut's voters Connecticut's cost of living is too high. according to a new statewide poll.
State taxes were seen as too high by 79% of
Conducted by Public Opinion Strategies for
Democratic voters, 88% of independents,
CBIA, the poll shows personal finance
and 91% of Republicans.
issues dominate voter priorities ahead of this year's elections for governor and statewide offices and the General Assembly. When asked to identify the two top issues for election candidates, 65% of respondents said inflation and the state's high cost of
Affordability Issues Eighty-two percent of Democrats said the state's cost of living was too high, as did 92% of independents, and 94% of Republicans.
living and 48% cited state taxes and
Just 16% believed state taxes were "about
government spending.
right," with 16% also feeling the same about
Inflation and affordability are the top issues
Connecticut's cost of living.
regardless of political affiliation, identified by
Connecticut's lack of affordability was also
63% of those who said they were registered
seen by 75% of those surveyed as the most
Democrats, 66% of independents, and 67%
significant challenge for recent college
of Republicans.
graduates and young people, followed by
Eighty-five percent of surveyed voters said
student loan debt (48%).
06 / News & Views From The Capitol
Forty-five percent of those polled feel less
"While any tax relief is welcome, less than
secure financially than they did a few years
half of what was in the budget package is
ago, with 40% feeling the same, and 11%
recurring, so there are questions about the
feeling more secure.
long-term impact beyond this year,"
More than half of GOP voters (51%) said
DiPentima said.
they felt less secure about their finances, as
"It's clear from this poll that voters want
did 50% of independents and 37% of
structural changes to both the state's tax
Democrats.
system and to the way state government
Those without a college degree were more
operates.
likely to feel uncertain about their finances
"They want government to be more efficient
(49%) than those with a college education
and effective and they want a better return
(41%).
on their taxpayer dollars."
Tax Relief
Economic View
Seventy-nine percent of all surveyed voters
Voters were mixed about the state's
support comprehensive tax relief for all
direction, with 46% believing Connecticut
individuals to lower taxes and raise take
was on the "wrong track" and 42% saying it
home pay.
was headed in the right direction.
While the state budget revisions adopted
Seventy-one percent of Democrats
this year included $600 million in individual
approved of the state's direction, while 54%
tax relief, $330 million is temporary,
of independent voters and 80% said
including suspension of the state's 25 cents
Connecticut was on the wrong track.
per gallon gas tax through Dec. 1.
When asked to rate Connecticut's economy,
The budget also expands the 50% tax credit 57% of voters described it as “only fair” or for employers that contribute to an
“poor,” with 40% calling it "good" or
employee's Connecticut Higher Education
"excellent."
Supplemental Loan Authority student loan, although that program only impacts a minority of graduates. 07 / News & Views From The Capitol
Party affiliation played a major role in those
Eighty percent of voters support expanding
responses, with 69% of independents and
the research and development tax credit to
74% of Republicans having an unfavorable
small businesses, while 72% believe
view while 65% of Democrats were
lawmakers should restore the pass-through
favorable.
entity tax credit to its original level.
Voters were evenly divided about the state's Over two-thirds (67%) said policymakers economic outlook, with 31% expecting the
should use federal COVID relief funds and/or
economy to improve, 30% predicting a
budget surplus dollars to pay off the state's
downturn, and 27% seeing no change.
pandemic-related unemployment loan debt
Business Climate A majority of voters (59%) believe state government makes it difficult for businesses to succeed in Connecticut. The high cost of living (79%) and high state
taxes (65%) were viewed as the top challenges to the future growth and survival of businesses in Connecticut. Fifty-seven percent believe business taxes are too high, 14% said they were "about right," 4% said they were too low, and 24% were unsure.
and ease the burden on employers. Seventy-five percent support modernizing and streamlining government operations and the use of technology solutions to reduce the state's physical footprint and cut high overtime and other costs. Public Opinion Strategies surveyed a representative sample of 500 Connecticut voters between March 29 and April 4, 2022. Forty-three percent of those surveyed identified as independents, 37% were registered Democrats, and 20% were registered Republicans.
08 / News & Views From The Capitol
Register at CTPOA.com/events
Mortgage Activity Hits 22-Year Low As Rising Rates Bite Housing Market By: Emily McCormick, with finance.com A closely watched gauge of mortgage application activity slid to a more than two-decade low last week, as elevated home prices and rising interest rates dragged further on purchase and refinancing activity. The Mortgage Bankers Association's (MBA) weekly market composite index tracking mortgage loan application volume sank 6.5% during the period ending June 3. This represented a fourth consecutive weekly decline and extended a 2.3% drop from the prior week.
10 / Realtor Report
Refinance applications fell 6% weekon-week and were down 75% compared to the same time last year. Meanwhile, purchases fell 7% from the prior week, and on a seasonally unadjusted basis, were lower by 21% compared to last year.
“Weakness in both purchase and refinance applications pushed the market index down to its lowest level in 22 years," Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a press statement. "While
rates were still lower than they were than-expected 16.6% in April to four weeks ago, they remained high reach a two-year low, while existing enough to still suppress refinance
-home sales sank to the lowest
activity. Only government
since June 2020 as the median
refinances saw a slight increase
home listing price soared to a fresh
last week."
record high of $391,200.
“The purchase market has suffered The average rate on a 30-year fixed from persistently low housing
mortgage hovered at 5.09% as of
inventory and the jump in mortgage the beginning of the rates over the past two months,"
month, according to Freddie Mac
Kan added. "These worsening
data released June 2. While that
affordability challenges have been
was a tick down from the 5.10%
particularly hard on prospective first from the prior week, it was still a -time buyers.” The MBA's latest report adds to other housing market data underscoring cooling demand as interest rates creep higher. New home sales slid by a much worse-
jump from the comparable week last year, when the rate averaged 2.99%. The average rate on a 30year fixed mortgage reached the highest level since 2009 in mid-May at 5.30%.
11 / Realtor Report
Does Homeowner Insurance Cover Rental Property? From: nationwide.com If you own a home, you already know used as a rental. you need homeowners insurance to
2. Ensure your space qualifies as
protect your investment. But what
a rental.
insurance policy do you need to
adequately protect your rental property?
If you’re unsure about whether your situation is fully considered “renting,” contact your insurance provider.
Having the right insurance package
Different insurance companies have
can save you a headache in the long
different rules for what qualifies as a
run. Here are a few things to know
rental, such as whether the person
about insuring your rental property the living there is a family member, right way: whether the space has a separate
1. Consider obtaining additional
entrance and how the space is
coverage.
attached to the main structure.
A standard homeowners insurance policy typically doesn’t cover damage that occurs when the space is being 12 / Insurance Insights
Making sure you’re aligned to your insurance provider’s definition is key to choosing the right coverages.
3. Stay protected with Dwelling
disasters – which helps you protect
Fire insurance.
your investment.
If you are renting out your property for any length of time, you will need landlord insurance. Most landlord polices come standard with liability insurance, property damage and loss of income coverage, which reimburses you for rent lost as a result of the unit becoming uninhabitable. You can
5. Cover your personal belongings.
also take out additional coverages,
If you rent out a property that you
such as flood insurance, to further
own full time, you may not need a
protect your property.
standard homeowners insurance
4. Encourage tenants to get renters insurance.
policy. However, if you’ve furnished the house or store any of your personal belongings there, you will
Although not required by state law,
still want home insurance to protect
renters insurance is the only way
these contents.
your tenants can protect their belongings, because your landlord’s insurance won’t cover their personal property. It can also protect tenants from having to pay out of pocket for
Now that you have the full scoop on homeowners insurance for rental properties, it may be time to get a homeowners insurance policy.
other common incidents like water backup damage and certain natural 13 / Insurance Insights
Summer Maintenance For Your Rental Property By: Kaycee Miller, with rentecdirect.com Seasonal maintenance is vital to ensure your
aren’t faded by winter weather or the
tenants’ safety and to protect your property
sun. Check that locks and gates are in good
from damage; summer maintenance is no
condition to further protect young residents in
exception.
your community.
A quick preventative maintenance task could
Outdoor Amenities: Nothing can kill a summer
easily save you thousands of dollars down the
BBQ faster than a grill that runs out of fuel in-
road, so you certainly do not want to skip this
between burger flips. If you want your residents
responsibility. Now is the time to start on your
to use the community space you provide, make
maintenance tasks and summer event planning sure the propane tank is full and keep an extra so your property is ready for the season. These on hand, in case your residents need to make a are the keys to remember in order to tackle those vital summer maintenance tasks.
quick switch. Pull out the summer maintenance checklist:
This comprehensive list will ensure that your
Each season calls for different routine
property is in tip-top shape. These tasks also
maintenance. Your team should be prepared to
address your tenants’ expectations for summer
add summer chores to their to-do list like:
enjoyment, as you address outdoor activities,
servicing the pool, cleaning grills, organizing
shared spaces, and amenities.
outdoor community areas, adjusting the
Pool Safety: Get the pool cleaned and in prime condition for summertime splashes. If you do
irrigation system, and getting ready for A/C maintenance calls.
not have a lifeguard on duty, check to make
Water: When the temperatures start to rise,
sure your posted safety signs are visible and
servicing the irrigation system can result in big
14 / Property Management Tools & Tips
savings on water usage, prevent landscape
grills, and community amenities. Make sure to
damage, and reduce standing water. You
include information about your guest policies
should also program your sprinkles to optimal
and parking. Be sure to remind your residents
summer use settings, to keep your landscape
about any state and local distancing
looking fresh and reduce overwatering.
requirements.
Fire Wise: Make sure your property is prepped Check for summer-related State and Local for high heat and that any fire dangers are
Requirements: Did you know that
removed. Outside bushes and trees should be
in Washington, D.C. the housing code requires
trimmed backed and dead plants removed.
landlords to put screens on windows and doors
Additionally, make sure any grills owned by the from March 15 through November 15 to protect property or your tenants are properly ventilated tenants from insects and pests? Ensure you and positioned away from buildings. Make sure follow state and local laws for seasonal to double-check your local laws about fire extinguisher requirements for landlords.
requirements like this for landlord compliance. Don’t Forget About Renewals: Capitalizing
Service the Air Conditioners: Enlist the help
on summer fun by using this time to ask for
of a professional to service the A/C unit at
renewals while spirits are high. If you host
least once a year. They will be able to check
community events, like a BBQ or pool party,
the unit, clean coils, adjust dampers, and look
and offer renewal incentives. The more you
for any other potential problems. It is also
remind your tenants about how much fun it is
important to remove trees, debris, or trash that to live in your property, the more likely they will can obstruct proper operation.
stay.
Check chairs, umbrellas and tables:
As the nation begins to open up, you may be
Multifamily renters are about to spend more
inclined to resume your property’s normal
time outdoors, which means any chairs, tables, summer events. Keep in mind any local area and umbrellas are going to get a lot of use.
restrictions before you invest in a plan.
Your property will be more inviting and safer if
Consider your event activities and layout and
those community fixtures work properly.
attempt to build more natural social distancing for those that need it. A little extra planning can
Send a Friendly Rule Reminder to Residents: The warm weather and late sunset can bring people outside late into the night.
keep everyone safe while finally enjoying the usual summer fun.
Remind your residents of the complex’s quiet hours and any rules about using the pool,
15 / Property Management Tools & Tips
Inflation Rates Are Breaking Records. Here’s What You Need To Know By: Emma Kerr, with usnews.com U.S. inflation hit a 40-year high last month – possible interest rate hikes this year. Taking rising at its fastest annual pace since
steps to hedge against inflation and prepare
December 1981 – of 8.5% in March.
for higher interest rates should be part of
It's been decades since the U.S. faced significant inflation rates, and financial advisors worry that years of small, steady increases may have left
everyone's financial plan, whether inflation cools off or continues to ramp up in the coming months. "We've been used to a period of time with
consumers unprepared for today's extended relatively low inflation, so we've all gotten inflationary environment. In May 2020, the
complacent. We're seeing it now, and
consumer price index dipped to 0.1%
economists aren't surprised necessarily, but
before quickly rising over the following
a lot of everyday people are," says David
nearly two years and prompting the Federal Weliver, Reserve to raise interest rates in March
personal
2022 in an attempt to temper inflation and
finance
rising prices.
expert and
Consumers have lived with higher prices for months with no end in sight, and they'll now have to begin absorbing the first of seven 16 / Financially Speaking
founder of Money Under 30.
What Is Inflation? Inflation means consumers can buy less with the same amount of money. The rate of inflation is measured by the consumer price index, which calculates the average change over time in the prices consumers pay for a market basket of
goods and services. Inflation typically rises slowly, often unnoticed by consumers. During periods of high inflation, the effects can become more severe, triggering a cycle of rising prices and interest rates while the value of the currency falls.
MaxMyInterest.com, says, "people have started to acknowledge that inflation is more than transitory." "Inflation is difficult for people to understand," he adds. "Everyone has been making financial plans with the expectation the Fed would try to keep inflation at about 2% a year. Probably no one planned for 8% inflation each year. It may feel good to get a raise, but unless you’re keeping pace with inflation, you’re further behind." Why Does Inflation Occur? Today's inflation is caused by multiple
Over the last century, average annual
factors, Weliver says, including a sudden
inflation in the U.S. has ranged from
demand for goods while supply struggles to
upwards of 10% to lows of -10%. Ideally,
keep up amid the pandemic, low interest
the Federal Reserve aims to reach a target
rates and large amounts of cash in
inflation rate of 2% to 3% in the long term.
consumer pockets following government
This rate represents a balance between
stimulus payments.
inflation that is too high, causing a burden on families seeking to purchase essentials such as food and gasoline, and inflation that is too low, which can weaken the economy. Inflation can come and go, surging
"What happens when you print money is you put more dollars into the supply and the value of each dollar goes down," Weliver says. "We have these three things going on at once, so not surprisingly, inflation is really
temporarily or hanging over an economy for starting to pop." years, or be confined to certain sectors.
Talk of inflation can also be self-fulfilling,
Today, however, Gary Zimmerman,
Zimmerman says, changing the way
managing partner of Six Trees Capital in
consumers and companies think about
New York and founder of
prices. 17 / Financially Speaking
"In an inflationary environment, the first
sending an influx of cash to consumers in
thing that happens is a company's costs go
the form of checks or rebates – a sort of
up. They pass those costs to customers in
gas pedal.
the form of higher prices," he says. "As long as labor market conditions continue to be tight – the very act of people asking for
raises, or we've seen McDonald's offering large bonuses to people willing to work – that means they must raise their prices, and
The latest personal consumption expenditures inflation projections are 4.4% for 2022, 2.7% in 2023 and 2.3% in 2024,
according to the Federal Reserve Bank of St. Louis.
so it ripples through the economy."
How to Hedge Against Inflation
The Federal Reserve has some levers to
In an inflationary environment, consumers
pull that can cause or temper inflation. In
are reminded of an existential truth: Money
today's high inflationary environment,
is a social construct, mere paper assigned a
raising interest rates can make it more
value that can change overnight. Inflation
expensive for consumers and businesses to breeds fear, but it doesn't have to. borrow for large purchases like real estate,
"Inflation tends to be temporary. Having
thus reducing market demand – a sort of
plans in place can be more long lasting and
brake pedal.
more effective," says Nilay Gandhi, a
On the reverse, government agencies may
certified financial planner with Vanguard's
attempt to stimulate the economy during
Personal Advisor Services. "Sticking to that
periods of low inflation or recession by
plan will generally outpace inflation."
18 / Financially Speaking
As the threat of continued inflation looms, consider these strategies to hedge against inflation: •
Maintain a budget.
•
Spend less than you earn.
•
Delay purchases of goods severely
affected by inflation. •
Build skills and work toward a promotion
or raise to keep up with costs. •
Set clear, appropriate goals.
•
Maintain a well-balanced, diversified
investment portfolio. •
Choose an asset mix that suits your
goals. •
Stick to the plan.
High inflationary environments can be an
"Focus on the controlables," Gandhi says. "Choose an asset mix that's appropriate for the duration of that goal and the comfort level of ups and downs that could happen with that time frame." However, periods of high inflation can also be devastating for a family's budget,
particularly as many families in the U.S. were already living paycheck to paycheck before sudden spikes in price tags at the
investing opportunity. Commodities like gold grocery store and gas pump began popping tend to be considered safe havens in times up last year. of high inflation, and this popular belief can
"Budgeting is the infrastructure for your
be true, Weliver says, but it takes time for
financial life. If you budget, it will allow you
such investments to pay off. Typically,
to get through good times and bad times
commodities should be held as one piece of without the whole house of cards falling a larger portfolio. apart," says Kimberlee Davis, host of The And as inflation rates rise and fall, advisors
Fiscal Feminist. "Discretionary costs are
continue to suggest sticking to a financial
what people need to focus on, and they
plan and following the fundamentals of
might have to be brutal for a while. With
personal finance, such as spending less
inflation the way it is, it’s going to take more
than you earn.
money to do the same things." 19
/ Financially Speaking
Spring & Summer Energy Saving Tips From: energy.gov Here you'll find strategies to help you save
OPERATE YOUR THERMOSTAT
energy and keep costs down during the spring
EFFICIENTLY
and summer when the weather is warm,and you are trying to keep your home cool. Some of the tips below are free and can be used daily to increase your savings; others are simple and inexpensive actions you can take to keep energy affordable through the spring and
•
Set your thermostat at a temperature you
find comfortable and that provides humidity
control, if needed. The smaller the difference between the indoor and outdoor temperatures, the lower your overall cooling bill will be.
summer. For more ways to stay cool while
•
saving energy, check out our Energy Saver
you are away, and lower the thermostat setting
101 infographic, covering everything you
when you return home and need cooling.
need to know about home cooling.
A programmable thermostat allows you to do
If you haven't already, conduct an energy
this automatically and without sacrificing
assessment to find out where you can save the
comfort.
most.
•
USE YOUR WINDOWS TO KEEP OUT
setting than normal when you first turn on your
HEAT
air conditioner. It will not cool your home any
Keep your house warmer than normal when
Avoid setting your thermostat at a colder
faster and could result in excessive cooling and •
Install window coverings to prevent heat gain through your windows during the day.
20 / Get Energy Efficient
unnecessary expense.
USE FANS AND VENTILATION
•
STRATEGIES TO COOL YOUR HOME
take advantage
•
Turn off ceiling fans when you leave the
room. Remember that fans cool people, not rooms, by creating a wind chill effect. •
When you shower or take a bath, use the
bathroom fan to remove heat and humidity from your home. Your laundry room might
also benefit from spot ventilation. Make sure bathroom and kitchen fans are vented to the outside (not just to the attic).
KEEP YOUR COOLING SYSTEM RUNNING EFFICIENTLY •
For maximum energy affordability,
If convenient,
of daylight instead of artificial lighting, but avoid direct sunlight. •
Wash full
loads of dishes and clothes for better efficiency.
KEEP HOT AIR FROM LEAKING INTO YOUR HOME •
Seal cracks and openings to prevent warm
air from leaking into your home.
schedule regular maintenance for your cooling • Add caulk or weatherstripping to seal air leaks around doors and windows. equipment. •
Avoid placing lamps or TV sets near your
room air-conditioning thermostat. The thermostat senses heat from these appliances, which can cause the air conditioner to run longer than necessary. •
Vacuum your air intake vents regularly to
remove any dust buildup. Ensure that furniture
and other objects are not blocking the airflow through your registers.
CONSIDER A RANGE OF APPLIANCES
LOWER YOUR WATER HEATING COSTS Water heating accounts for about 18% of the energy consumed in your home. The Consumer Product Safety Commission recommends setting your water heater at no more than 120 degrees
Fahrenheit to prevent scalding. The lower setting will also conserve energy and save money.
AND LIGHTING OPTIONS •
Consider lighting options that operate at
cooler temperatures.
21 / Get Energy Efficient
8 Important Legal Tips for Landlords and Property Owners By: Liran Koren, from luxurypropertycare.com Lawsuits are everywhere and they can
should hold on to pertinent documents that
happen to anyone — including you.
may be considered as evidence.
Rental properties are a lucrative investment This includes all landlord-tenant but they come with the risk of litigation.
communication including emails, text
Aside from making sure that your property
messages, call logs, and the like. Whenever
is “rent-ready”, you should also make sure
you’re discussing important matters with
that you’re prepared to defend yourself in
your tenant (e.g. late rental payment fees,
case you’re facing legal action.
eviction, etc.), it’s best to stick to written
Below, let’s take a look at eight things you
modes of communication.
can do to prevent nasty lawsuits:
#2 Understand Data Privacy Laws
#1 Keep Records of Everything
Although the US doesn’t have federal-level
And by everything, we mean everything. As a property owner, you should keep records of rent receipts, work orders, eviction notices, and more. Proper documentation can protect you when you’re faced with legal issues. To avoid pointing fingers, you
22 / The Legal Corner
data privacy laws unlike the UK’s General Data Protection Regulation (GDPR), the US does have state-level statutes such as the Californian Consumer Privacy Act (CCPA) and the Hawaii Consumer Privacy Protection Act (SB 418). These laws provide consumers with greater control over
their personal data, such as their names, addresses, phone numbers, and more. The state of Florida does not yet have laws governing data privacy, but there have been talks about introducing a law that is similar to the CCPA.
requirements are within the law. #4 Don’t Enter the Unit Without Notice You may own the rental property, but the moment that it is rented out, you lose the ability to walk inside the home whenever you want. Tenants have the right to utilize
Data privacy laws apply to all landlords
their rented
and property managers that collect
space
personal information from their tenants.
without the
This includes the information found in the
interference
rental application.
of their
#3 Require Renters Insurance
landlord. This is called
A property owner’s typical landlord
the right to
insurance won’t cover the costs of
the “quiet enjoyment” of their home. As a
replacing the tenant’s belongings in the
general rule, you may enter the
event that they get destroyed or stolen. It
property only when the tenant has given
also won’t cover the tenant’s medical
you permission.
expenses should they get injured on the property.
There are, however, exceptions to the rule. You may enter the rental unit without
To protect yourself from lawsuits, consider notifying your tenant when: requiring your renters to obtain renters • There is an emergency (e.g. gas leak, insurance. Not only does it protect your fire, flood) tenant’s personal property, but it also guards you in the event that your tenant
•
decides to sue.
the tenant has abandoned the property
Keep in mind that including this clause in
•
the rental agreement may be prohibited in
property for an “extended absence”
The is reasonable cause to believe that
The tenant has been absent from the
certain states. Be sure to check with your property manager to ensure that your 23 / The Legal Corner
#5 Require a Security Deposit A security deposit is a fee that a tenant has to pay on top of the first month’s rent. It is a refundable amount that the tenant can get back when they move out. Its purpose is to protect you, the landlord, in the event that the tenant damages the property or fails to satisfy
Florida does not have landlord-tenant laws governing security deposits, hence, you have complete discretion over the amount that you will charge. Just make sure that it’s a reasonable amount, otherwise, your tenants may change their minds about renting the place.
their financial obligations (e.g. rent
#6 Keep Your Security Deposit in a
payments and utilities).
Separate Account
The law does not require landlords to
Landlord-tenant laws vary by state
collect a security deposit from their
when it comes to where the security
tenants, however, it would be in your
deposit should be stored. Generally,
best interest to do so. If you decide to
you shouldn’t store your tenant’s
require a security deposit, keep in mind security deposit in your personal bank that some states have set a cap on the maximum amount that you can collect.
24 / The Legal Corner
account since it yields interest.
In Florida, you should keep your
(HUD) investigates the claim, you may
tenant’s security deposit as a surety
want to consult an attorney. The
bond, in a dedicated bank account, or
penalty for first-time offenders can be
a non-interest-yielding bank account.
as high as
It’s worth mentioning that security
$16,000 excluding attorney’s fees,
deposits stored in an interest-yielding
damages, etc.
bank account must be returned to the
tenant along with the accrued interest. #7 Follow the Fair Housing Act
#8 File Your Taxes Accurately Filing your taxes is a skill you need to master if you’re planning on becoming
As a landlord, you should know the
a landlord. If you intentionally submit a
Fair Housing Act (FHA) by heart. The
false report of your annual income or
FHA protects “protected classes” by
claim unfounded tax deductions, you
prohibiting discriminatory acts in
may soon be getting a visit from the
housing, such as:
Internal Revenue Service (IRS).
•
Refusing to rent the property due to However, if you made an innocent
race, religion, national origin, etc. •
Having preferences regarding the
type of tenant/s (e.g. “whites only” and “families only”) •
Failing to provide the same
services, amenities, etc. to tenants of protected classes If a prospective tenant sues you for discrimination and if the Department of Housing and Urban Development
mistake, you should file an amended tax return as soon as possible. You shouldn’t let the period for filing lapse. Remember, if you purposely attempted to evade your taxes, you may face a maximum fine of $100,000. It’s best to hire a single-family property management company that has its own team of attorneys and accountants to ensure that you don’t violate the law.
25 / The Legal Corner
For More Information Visit Our Website: landlordcollections.net Give Us A Call: (800)-369-6153
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Title: Owner Hometown: New Haven County Terri has been in the insurance industry since the age of sixteen. Her career started out as a workers’ compensation adjuster and life care planning coordinator for municipalities throughout the State of Connecticut. She has been a partner in ServiceMaster Restore for the past three years, during which time she has completed IICRC training in water damage, odor control, and applied structural drying, as well as certification as an antimicrobial technician. Terri can honestly say she gets up every day and loves what she does. She believes that Serge is a great partner and together they succeed in restoring peace to families who need it most. In her spare time, Terri enjoys spending time with her family, her horses, and volunteering. 28 / Vendor Spotlight
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We specialize in restoration services for residential and commercial properties damaged by water, fire or mold. We manage a 24hr emergency response operation.
Phone: 203-442-4444 Email: Terri@servicemastercm.com Service Areas: Litchfield County, Bristol & Plainville, Milford & Orange, Bethel, Brookfield, Danbury, Monroe, New Fairfield, Newtown, Sandy Hook, Sherman & Stratford 29 / Vendor Spotlight
Rental Application Fraud In The Digital Age By: Paul Jenney, Compliance Officer with TenantTracks The process to apply for a rental unit
The digital pool of applicants adds more
looks much different than in years past.
people to the pile of applications we are
Rather than meeting with a landlord in
getting for every unit, but quite frankly,
person, applicants can send an
many of them are looking for a ‘mark’ that
application online without ever meeting
they can get one over on via one trick or
face-to-face.
another. Small landlords are easier to deceive than major management
Zoom calls are common, as are virtual
companies due to the belief they have a
showings.
less robust set of tools.
Reducing fraud should be a top-tier
One of the leading credit bureaus Trans
concern as it becomes more and more
Union (which is TenantTracks’ primary
commonplace. Every day we are hearing vendor) conducted a study in 2020 about of more scams, from people queuing up
application fraud. They found in addition
people to be their ‘landlord’ for
to the switch from in-person applications
references, to sophisticated operations
to digital applications, the COVID-19
generating paystubs, and even tax
pandemic was another contributing factor
returns.
to the rise of fraud in the rental housing industry.
30 / Tenant Screening Tips & Tricks
They found that: •
The best way to catch fraud is to have
41% of respondents discovered fraud
systems in place to prevent it.
after move-in •
67% are concerned about the future of
Through the process of identity verification,
fraud growth
you can make sure that you are speaking to the person you believe that you are
Over the course of the coronavirus
speaking to. Cross referencing the
pandemic, fraud has steadily increased,
information you see can show you what
and 22% of applicants failed authentication
lines match up and what doesn’t. Does their
or were identified as high risk. During the
government-issued ID match with their
pandemic, fraud reached a high of 15%
other records? That can include credit
compared to 10.3% over the same period in information, eviction history, criminal history, 2019.
and employment records.
It’s important for landlords to understand
Start with a completed rental application.
the risk factors of fraud, as it can result in
Everything should be filled out, and of
several negative consequences. Some
course, a full release to conduct an
lasting impacts of fraud, as identified by
extensive background check. If you are
Forrester (who conducted Trans Union’s
doing this online, have them upload a copy
study), include:
of their government issued ID for a first line defense. If the information on the ID and
•
Increased repetitional damage: 59%I
the application do not much, that should be
•
Increased evictions: 51%
your first red flag.
•
Internal time spent comparing applications to find discrepancies: 46%
From there, you can verify everything your
•
Increased financial loss: 35%
applicant provided, and whatever is
•
Lighter vacancies: 32%
required within your rental criteria (you do
•
Increased bad debt: 22%
have a WRITTEN criteria checklist, right?),
31 / Tenant Screening Tips & Tricks
is accurate and meets with your
identity theft-related fraud in the U.S.
expectations. That would include checking for omitted information,
With fraudsters becoming smarter,
noticeable gaps in their rental or
companies are having difficulties staying
employment history (cue criminal
ahead of their advanced tactics. Some
records possibility here), or references
types of fraud landlords should be aware
that just don’t seem to be as accurate.
of include:
Types of Fraud
•
With increased digitization comes more
practice of lying on a rental application,
types of fraud.
whether it be providing false income or
Rental application fraud: This the
uploading an altered photo. We have all heard of data breaches.
•
Synthetic fraud: This is one of the
Fairly every week we are being notified
fastest-growing types of fraud. It’s where
that our own data has been
an applicant creates a fake identity using
compromised and offer us credit
real and false information. For example,
monitoring free. You should take
a fraudster may create a fake Social
advantage of these offers. Forrester
Security number and pair it with a real
estimates that one recent breach alone
address to create a fake identity to gain
caused an increase 5% to 10% in
access to a rental property.
32 / Tenant Screening Tips & Tricks
•
First-party fraud: This type of fraud Consumer reporting agencies are
is performed by the individual, which is
extremely good at returning complete
typically the tenant, where they use
and accurate information even when
fake or altered information, such as pay identities are manipulated. It’s central stubs and previous addresses, to
to their business and there are
qualify for a rental property.
extraordinary business and regulatory
•
Third-party fraud: This is when an
pressures on them to do this well.
individual uses another person’s identity or information to qualify for a
They must have sophisticated tools for
rental property, such as
finding addresses, social security
misrepresenting who they are with
number fraud, address matches and
someone else’s Social Security
mismatches, soundex and nickname
number, name, and date of birth.
logic, and a host of other tools to correlate the data supplied vs the
Much of this can be mitigated with
output data that paints a complete
adequate screening both on the due-
picture of the applicant and that it is
diligence phase of calling landlords and actually the individual applying. employers, verifying documentation, and during the tenant screening report. The more homework you do at the outset to prevent fraud, the better the You must learn how to QUALIFY the
outcome for your bottom line.
reference as a reliable historian (this
skill is a must have) to weed out those feeding you false information. You also need to be able to identify if a government issued ID is falsified. Bartenders been doing this for years, so it’s a skill that can be acquired.
33 / Tenant Screening Tips & Tricks
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.
Get Involved, Stay Informed.
June 2022 Sun
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CTPOA
ECAR
Events & Meetings & Networking
Connecticut Property Owner Alliance (CTPOA)
CT Real Estate Investors Association (CTREIA)
CT Real Es Investors Associatio (CTREIA
Next Meeting: June 14th
Next Meeting: June 20th
Next Meeting: June
Time: 5:30 PM
Time: 5:45 PM - 9:00 PM
Time: 5:45 PM - 9:00
Where: River Hill Restaurant Where: Sheraton Rocky Hill Where: Keller William 1700 Watertown Ave 100 Capital Blvd. 2777 Summer St, Su Waterbury, CT 06708 Rocky Hill, CT 06067 Stamford, CT 06905 Contact: 800-369-6153
Contact: 860-265-4414
About: Join us for a night of: About: Our Main Monthly Meeting - Central CT with • Networking Attorney Lee Phillips. Mastering The Tools of • A presentation by Wealth! Eviction Attorney Dana Guiliano on everything Lee is the nation’s leading you need to know about Connecticut Evictions. In expert in asset protection for real estate investors and addition to her legal insights, Dana served as small businesses. Join us the former Head Clerk of and learn how to make more money while protecting the Waterbury Housing yourself! Court for over two decades. Register Here! • Legislative updates provided by CTPOA •
Food will be served, cash bar.
Register Here!
Contact: 860-265-44
About: Our Main Mo Meeting - Fairfield Co with Attorney Lee Ph Mastering The Tools Wealth!
Lee is the nation’s le expert in asset prote real estate investors small businesses. Jo and learn how to ma money while protecti yourself! Register Here!
tate s on A)
CT Real Estate Investors Association (CTREIA)
Connecticut Property Owner Alliance (CTPOA)
Eastern CT Association of Realtors (ECAR)
21st
Next Meeting: June 25th
Next Meeting: June 29th
Next Meeting: June 30th
0 PM
Time: 9:00 AM - 1:00 PM
Time: 5:30 PM
Time: 3:00 PM - 5:00 PM
ms uite 700
Where: CTREIA 415 Silas Dean Highway, Suite 304A Wethersfield, CT 06109
Where: The Frosty Mug 269 Beaver Street New Britain, CT 06051
Where: Saltwater Farm Vineyard 349 Elm Street Stonington, CT 06378
Contact: 860-265-4414
About: Join us for a night of:
414
onthly ounty hillips. of
Contact: 800-369-6153
About: Mastering Real Estate Tax Strategies With • Networking Attorney Lee Phillips. • An overview and update on housing and Saturday he will go into eading environmental issues in more depth concerning ection for asset protection and Connecticut and the legal tools you can • A guest speaker who will oin us use to get security. be announced soon! ake more Lee will also take a deep ing dive into real estate Register Here! taxation and how you can get more money in your real estate investing. Register Here!
Contact: 860-892-2595 About: Join the ECAR YPN Committee for a networking event on June 30th from 3pm-5pm on the mezzanine at Saltwater Farm Vineyard in Stonington.. Co-Sponsored by Women's Council of REALTORS ® Eastern CT. Register Here!
P. (800)369-6153
F. (888)900-9773
E. info@ctpoa.com
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CT Real Estate Today allows you to hit your target audience for all things real estate. Contact us at info@ctpoa.com
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ecticut Property Owners Alliance is of experienced property managers, S and landlords working together to usiness conditions for rental property owners.
ow CTPOA: https://www.facebook.com/CTPOA/
About Us Advocates For Property Owners The Connecticut Property Owners Alliance is composed of experienced property managers, realtors and landlords working together to improve the business conditions for rental property owners. The Alliance saves its members money on essential real estate services, reviews and testifies on pending legislation & law changes and offers its members workshops and meetings on topics that impact landlords.
Why The Property Owners Alliance Was Formed The Alliance strives to ensure your success in real estate by: •
Saving you money on essential real estate services
•
Informing you of law changes impacting your business
•
Providing workshops and meetings to help you become a better educated and prosperous rental property owner.