Pg. 6 - More Government Will Never Be the Answer
Pg. 24 - Federal Reserve Likely Increasing Interest Rates Again
Pg. 10 - Is This Spring the Make-or-Break Moment for 2023’s Housing Market?
Pg. 34 - Rental Application Fraud in the Digital Age
Publisher’s Message
A Message From Bob DeCosmo, President Of CTPOA
News And Views From The Capitol
More Government Will Never Be the Answer
Realtor Report
Is This Spring the Make-or-Break Moment for 2023’s Housing Market?
Insurance Insights
Landlords: Here’s Why Your Tenants Should Get
Renters Insurance
Property Management Tips & Tricks
The Complete Spring Maintenance Guide for Property Managers
The Housing Committee at the CT General Assembly wrapped up its work on March 7th for this session. The committee advanced 25 Bills to move forward in the legislative process that will impact housing in our State. Looking at their agenda when they started their committee work in January, the results are a mixed bag for both housing providers and tenant advocates alike.
Back in January, led by the CT Socialists of America, two Bills were introduced on rent control. They didn’t have the support of the committee members and rent control was transformed from a Bill into a study, so nothing is going to happen on this topic in 2023, but it will likely resurface in 2024.
Two Bills advanced that increase the fines a city can charge for failure to maintain a property, one is at $1,000 per violation in HB 6666, the other is $2,000 per in SB 4. While most housing providers take care of their properties, some don’t, and as a result, tenants suffer.
I am not sure raising the fines will improve anything for blight or reeling in the bad owners that fail to maintain their property. There are already laws on the books that say a housing provider must maintain their properties, and just about every city and town has blight ordinances. As we heard at one of the public hearings in the Housing Committee, a tenant provided a litany of violations and arrests that was read into the record against one New Haven Management Company, but that company is still operating and still not taking care of their properties.
What is needed is the steely resolve by municipal officials to take on these slumlords and use the existing statutes and laws to make them respond, if not, prison time should be in order
Increasing the fines will hurt the mom and pop providers that have suffered damage caused by a tenant. The tenant reports damage they caused to city code officials as retaliation for
their housing provider beginning an eviction against them - this happens very frequently! Without rent being paid, struggling mom and pop housing providers may not have the ability to repair the tenant caused damage and then they’re subject to excessive penalties applied by municipalities, which can force them out of the business.
Security Deposits were another item that was on several Bills the Committee held public hearings on. The subject matter ranged from limiting the amount charged to one-month’s rent in House Bill # 6666 and then forcing the return of deposits in a quicker timeframe in SB 943. Both ideas will negatively impact tenants as a rental applicant with marginal qualifications will be turned down for an apartment if an owner is only allowed to charge one month’s deposit. The risk of enduring a lengthy eviction will far outweigh the benefit of accepting a risky renter with just one month’s security deposit. In addition, if the deposits are going to be returned sooner this may not allow sufficient time for housing providers to obtain accurate damage estimates from contractors. Providers will likely err on the side of stating higher costs for damages rather than lower costs in their analysis as it’s hard to get qualified contractors today to come out and give quotes for work in a short timeframe and not every housing provider is a handyman.
Tenant Screening was impacted as well, as owners cannot ask for an application fee up front in Senate Bill #4 and House Bill # 6781. Now providers must run a screening report first, then they can ask for the applicant to pay an application fee equal to just the cost of the report itself, after
providing a receipt for the report cost to the applicant. Also, the housing provider must then give the applicant a copy of the report and that applicant can give that report copy to the next housing provider, if they didn’t get accepted for the first apartment. The next provider cannot ask for an application fee if the applicant has a report issued within the past 30 days. The problem is, not all reports are equal in quality and with software, anything can be photoshopped, leaving a high possibility for fraud with tenant altered reports.
Also, in Senate Bill #4 an eviction moratorium is to be created from December 1st until March 1st. State Marshals cannot move tenants out that have executions issues or housing providers cannot start a new eviction during this time except for Serious Nuisance. The problem here is that it already takes 3 to 4 months to get an eviction processed so it literally will wipe out 6 to 7 months of rent for a housing provider. This will no doubt lead to more mom and pop bailing out of the business and selling to absentee out-of-state investors. These are the same investors that seem to generate most of the complaints that negatively impact tenants.
Now the next phase of our grass roots lobbying activity begins and that is talking to local legislators about the issues that some of these proposals will create. In the long run, hopefully we wind up with the status quo and these Bills don’t make it to the Governor’s desk for a signature because they will harm our already damaged housing market further.
Proposed bills being raised in Hartford by majority lawmakers continue to undermine the very underpinnings and essence of America’s greatness. There are several clear themes this session that hold the hallmarks of both Marxist and socialist ideologies.
Your individual property rights and your ability to voluntarily enter private contracts with other adult free citizens are on the chopping block. As the ranking member of both the legislature’s Housing Committee and Labor and Public Employees Committee, I am working daily to prevent a flood of these measures from reaching the Senate floor and becoming law.
Nearly all of us have entered into a rental agreement at some point in our lives. Such agreements are entered into voluntarily and can be negotiated by the parties. The free market sets the value of property, and everyone works
to get the best deal they can from their perspective. This is how our country has always worked. Far-left ideas like price controls have been tried in the past and repeatedly failed, and America has thankfully all but abandoned price controls – until now. The concept of 'rent control' is now a daily conversation in committee discussions.
Economists across the political spectrum agree that rent control creating government-imposed caps on what a property owner may charge will result in fewer housing opportunities for Connecticut families. Housing providers will look for ways to avoid or navigate around artificial market restrictions and will ultimately navigate themselves right out of the state, or simply allow existing units to deteriorate instead of investing in them. Fewer people will invest in providing housing, demand will rise and without the ability to raise prices, the only housing left will be
government housing – which may, in fact, be the goal. There are other bills too – to ignore local zoning and empower big city housing authorities to expand into small towns. The future of quality, affordable housing is in grave danger as long as big-government central planners are in charge.
It has now become common for our state government to step into private contracts to unlevel the playing field in favor of one party over another. While this is often depicted as the government ‘sticking up for the little guy’ - by favoring a renter or an employee or other 'group,’ it is ultimately the renter or employee who suffers most. Providers and job creators are dis-incentivized to invest in their existing property or businesses that would create new opportunities, ultimately hurting our economy and limiting outcomes.
The engine that drives America and has resulted in our unsurpassed quality of life is the individual freedom to pursue a better future. As the government grows and interferes in our choices, so does our chance for success.
Consider the following measures. Government mandates on employers to: prevent on-call shift scheduling – even in businesses that operate that way naturally; require employers to pay for the benefits of striking employees; provide unemployment to striking workers; prevent exclusivity and non-compete agreements in contracts that benefit both parties; even preventing employers from offering job training
and education in exchange for requiring the employee to stay on the job for a period of time.
Here again, these concepts have the appearance of the government ‘standing up’ for the employee against the unfair employer. Appearances can be deceiving. Measures such as these undermine our freedom to make our way, negotiate our own terms, and they ultimately destroy opportunity. It’s clear that these types of laws nurture division and strife between classes and even neighbors. It also doesn’t take much hard thinking to realize that any potential short-term benefit to one party will ultimately hurt everyone far more in the long run.
So why does it happen? Why are politicians so committed to these bad ideas? The simple answer is political expedience. Dividing people into groups by race, gender, social class, etc., and choosing sides can generate lots and lots of votes, and all it takes is simple math to choose which side represents more voters.
Of course, this means sacrificing everything required to build a strong nation cooperation, principles, borders, thoughtful policymaking even peace!
The modern Democratic Party has recognized faction building as its business model, and clearly, it works for them in winning elections.
Of course, factions have always existed. That is natural and even key to recognizing the benefits
of freedom. However, a key part of our system is that it was designed to prevent our government from interfering and empowering any specific groups through limiting the scope of government and building protections into our Constitution. Sadly, those limitations are now casually and commonly ignored.
Our system works best when employers and employees are partners and not adversaries. When the government gets in the position of being the decider of who wins and who loses, our freedoms are reduced, ambition is limited, and outcomes are diminished.
Worse, the far left has now graduated from exploiting existing divisions to creating new ones, all again for political gain. It’s distasteful, it’s dangerous, and it’s tearing at the fabric of our country.
Someone recently said, ‘This is not your father's Democratic Party.’ It's true. JFK would hardly recognize the modern Democratic Party on economic views, let alone social issues. The last few moderate Democratic lawmakers in our state government were already on their way out just as I was first elected in 2010. Nowadays, elected Democrats at the state and federal level are more radical and progressive than ever.
This path of division and exploitation of ‘groups’ is destroying our country. We must all work together to restore our political system so it honors our values, our history, and the many who have sacrificed so much for us so we may live free.
I will continue to work hard while respecting all opinions, protecting freedom, civil rights, and a free-market economy where everyone can prosper.
About Rob: In November 2022, Rob Sampson was reelected by the people of the 16th Senate District to serve a third term in the State Senate representing the towns of Cheshire, Prospect, Southington, Waterbury and Wolcott. Previously, Senator Sampson served four terms as State Representative for the 80th district including Wolcott and Southington.
Sampson is widely known as an eloquent advocate for America’s core principles, restoring our system of limited, representative, constitutional government, protecting private contracts, and defending the natural rights of his constituents. He is the most outspoken advocate in the legislature for protecting election integrity and promoting government and budgetary transparency. He has dedicated himself to shedding light on how projects will be funded and if government funds are being used for their intended purposes. He has proven himself as a leader for several causes, challenging the Lamont administration’s budgets and policies including the introduction of tolls and forced school regionalization. He is also recognized as the legislature’s defender of the second amendment and protecting parent’s rights in education.
The Connecticut Conference of Municipalities in 2021 named Senator Sampson a “Legislative Champion of the Year” for his leadership in promoting transparency in government and budget matters during the 2021 legislative session.
Sampson’s ardent support for Connecticut’s economic competitiveness and business climate earned Sampson a 100% probusiness voting record according to the Connecticut Business and Industry Association (CBIA). He was one of only two Senators to earn this distinction.
In his third term, Rob will persist in representing his constituents and ideals. He continues his role as the Ranking Republican on the Government Administration and Elections Committee and the Labor and Public Employees Committee. He also returns as a member of the Judiciary Committee and was named Ranking Member of the Housing Committee.
Sampson is unwavering in his defense of conservative ideals. Dedicated to creating a brighter future based on America’s founding principles, Rob’s been a registered Republican since voting for his first time at age 18 in 1988.
The Conservative Political Action Coalition (CPAC) honored Senator Sampson with its “Excellence and Achievement Award” for his 2021 voting record, which supported conservative principles in key policy areas.
It’s that time of year again. Homebuyers begin poring over listings with Instagrammable kitchens and shoring up their finances. Sellers slap on fresh coats of paint and make all of the repairs they had been meaning to do since they moved into their properties. And a real estate agent somewhere pops a tray of cookie dough into the oven before opening the doors to the open house.
Welcome to the spring housing market, 2023 and buckle up for one unlike any you’ve encountered before. After a high-stakes, boomand-bust cycle that played out over the past year, buyers and sellers alike are now waiting to see if America’s real estate market awakens from its deep slumber and starts galloping again into the prime selling season.
Will sellers plant those familiar “For Sale” signs in their yards again in large numbers, and will
buyers snatch up their properties despite a crushing lack of affordability? The answers could reverberate through the market for years to come.
The market had been on life support the past few months as high prices and rising mortgage interest rates had sidelined many would-be buyers. Sellers had little incentive to list when multiple-offer bidding wars gave way to necessary decreases in asking prices especially when the next home they bought would have a higher mortgage rate. New listings dropped and the number of home sales cratered.
Buyers were frustrated, sellers felt trapped.
But then mortgage rates dipped to the low 6% range and buyers jumped back in. Now, new listings are dwindling and rates are back up
again, hitting 7.1% on Thursday afternoon before falling back down just below 7% on Friday for 30-year fixed-rate loans, according to Mortgage News Daily. That’s threatening what had been a promising prequel to the typically busy spring real estate market.
“The spring is likely to mark a turning point,” says Robert Dietz, chief economist of the National Association of Home Builders.
“You’re at the low, but you can start to see better days ahead.”
How far ahead those better days are remains to be seen. The spring housing market is likely to be busier than the dead of winter, but real estate experts anticipate it will be slower than the wild frenzy the market experienced at the height of COVID-19 and in the more traditional, pre-pandemic years.
“This is going to be a really bumpy road into the spring market,” says Lisa Sturtevant, chief economist of the Bright MLS, the multiple listing service covering the midAtlantic region. “[Mortgage] rates are incredibly important. But the availability of homes for sale is going to be the main constraint.”
The number of homes for sale was up 67.8% year over year in February, according to Realtor.com® data. But buyers shouldn’t get too excited. Most of these homes have been sitting on the market for what might seem
like an eternity, unable to attract buyers because they’re fixer-uppers, dated, overpriced, remotely located, or utterly lacking curb appeal. Meanwhile, those unicorns in the housing market the adorable, move-in ready homes in popular neighborhoods continue to sell briskly, often for over the asking price.
“Desirable areas, good school districts, and good quality homes are still going to sell well and [still] face bidding wars,” says Ali Wolf, chief economist at the building consultancy Zonda. “But that’s not going to be the norm.”
Buyers can expect a shortage of well-priced, turnkey homes and plenty of competition for the few that go up for sale. Mortgage rates are anticipated to bounce around in the mid-6% to 7% range. And while home prices won’t shoot up again, even if they dip a little in certain markets, they are expected to remain well above pre-pandemic levels. That makes it even more expensive for buyers to buy.
Purchasing a home is now about 50% more expensive than it was a year ago for those who rely on a mortgage. (The calculation assumes buyers put 20% down on a home with the median list price in February compared with the same month a year ago.
It also uses the most recent mortgage rates from Freddie Mac compared with a year earlier for 30-year fixed-rate loans.)
“The spring season, which is critical for the rest of the year, will be subpar,” says Realtor.com® Senior Economist George Ratiu. “Mortgage rates will continue to define the housing market.”
There aren’t nearly enough homes to go around
Unfortunately, many starry-eyed buyers entering the housing market won’t become new homeowners this spring. There simply aren’t enough homes for sale.
Homeowners who likely would have sold might not want to do so this spring. During the pandemic, they watched the cars line up down the block for their neighbors’ open houses and learned that the guy three houses down received 15 offers and sold his home for an unheard-of sum just a year ago. So they might not be willing to settle for any less even if
today’s buyers can’t afford the same price tags at higher mortgage rates. It might take them some time to accept the shift.
“Once the psychological adjustment completes, sellers will much more likely come to grips with the fact that the market is different,” says Ratiu.
In addition, many sellers are locked into mortgages with 3%, or lower, rates. If they trade up or down into new properties, many will need to get mortgages with higher rates, which will cost them dearly each month.
Still, it’s not all bad to be a seller especially of a move-in ready home in a hot area.
“Sellers are able to consider more than one offer,” says Bright MLS’ Sturtevant. “That is a position that puts sellers still into the driver’s seat.”
Builders aren’t rushing in to save the day. Instead of ramping up construction to fill that need, builders are largely pulling back. Higher interest rates have made it more expensive to put up more homes and have
decimated the number of potential buyers who can afford new construction.
That means they’re expected to put up even fewer new homes this year, which will worsen the nation’s housing shortage.
Homebuyers are grappling with higher costs
Buyers are reluctantly realizing that 2% and 3% mortgage rates are a thing of the past, and some are forging ahead anyway. Many expect rates will eventually drop a percentage point or two and they’ll be ready to refinance their loans once they do.
“A lot of people deep down want to own a home,” says Zonda’s Wolf. “They’re saying, ‘How long do I put my life on hold?'”
Some economists believe mortgage rates will begin falling in the second half of the year once the Federal Reserve has inflation under control. (Mortgage rates have been rising as the Fed has been hiking its own rates. Once the Fed stops raising rates, mortgage rates are expected to dip.)
Mortgage lender Shmuel Shayowitz is seeing an uptick in buyers getting preapproved for a loan as well as having their offers accepted.
“They’re definitely coming out more
aggressively than late last year,” says Shayowitz, of Approved Funding in River Edge, NJ. “Most are coming in with the expectation that they’ll be able to refinance within 12 to 24 months.”
However, the number of buyers applying for mortgages was down nearly 44% in the week ending Feb. 24, according to the Mortgage Bankers Association. That put demand for mortgages at a 28-year low.
This can be a bit misleading, though, as the housing market was on a tear the past few years, so the drop isn’t compared with a normal year. And many economists believe home sales have already bottomed out, so the only direction they can go is up.
The big question on the minds of buyers and sellers is which direction home prices will go next.
They rose to unthinkable heights during the pandemic because there weren’t enough homes to go around and lower mortgage rates gave buyers more purchasing power. Low rates saved buyers big, as their monthly payments shrunk. So they were able to put that extra cash toward higher home prices.
Higher rates have upended that calculation.
Ratiu, of Realtor.com, believes home prices will flatten out or dip a little to make up for the higher mortgage rates. And that should bring in more buyers in the summer and fall.
“The fact that a large share of buyers simply cannot afford mortgage payments on homes at the current price means that home prices have to adjust,” he says.
Others believe the housing shortage will keep prices high and they could begin to tick back up again. The only consensus among real estate experts is that whether home prices will rise or fall will vary considerably from market to market. Markets that boomed during the pandemic (e.g., Boise, ID; Austin, TX; and Phoenix) might be more vulnerable to steeper corrections.
However, even if prices do come down a little, most of those savings will be erased by higher mortgage rates. And that assumes buyers are able to find homes for sale that meet their needs as the housing shortage drags on.
“It’s going to be a tough market for both buyers and sellers,” says Mark Zandi, chief economist at Moody’s Analytics.
Renting out your property to tenants can be a hassle, and often involves thorough screening of potential renters and checking off tasks on a neverending to-do list. The phone calls, back and forth paperwork, and overall bureaucracy involved with leasing out your place to temporary tenants is a minor headache, at best.
That’s why making sure your tenants are fully protected with their own HO4 insurance policy is a no-brainer. In fact, you probably should make your tenants’ insurance mandatory in your leasing agreement – that way, you can increase the coverage on your rental, and lower your costs in the long term. Think of it as another line of defense when there’s an emergency situation.
How does my tenants’ insurance help me?
When your tenants have their own insurance policy, it’s an additional layer of protection for you, the landlord. When unfortunate things like fire cause damage to your place, their renters insurance policy can help repair the damage, reducing the amount
you or your insurance company have to pay.
This keeps your own policy premium lower by reducing the claims on your insurance, and helps you avoid costly legal fees. And not to mention, it saves you a ton of time!
In addition, renters insurance will help keep your relationship with your tenants healthy, especially when a major damage or loss occurs. With renters insurance, you can avoid disputes over who has to cover costs of damages.
Oh, and one more perk: Tenants with renters insurance are less likely to sue you to compensate them for a loss. In fact, a survey by Joshua Tree Consulting estimated that landlords in large properties juggle eight ‘nuisance’ insurance claims per property each year.
What does renters insurance cover?
If your tenants choose to purchase a renters insurance policy, they will get three main coverages: personal property, temporary living
expenses (also called ‘loss of use’), and personal liability & medical bills.
We’ll break down what each of these coverages mean for you, and your tenant.
Tenants tend to think that since they don’t own the place, they don’t need extra protection for their stuff. That’s a very common mistake, and it’s important the tenants know they won’t be covered if a kitchen fire damages their stuff, or their laptop is stolen. Your landlord insurance doesn’t cover the tenant, or the tenant’s stuff.
Imagine this: a mysterious fire causes extensive damage to your building, displacing your tenants and damaging their stuff. Not only would this cost your uninsured tenants serious $$, but they would also likely need to blame someone for this incident, and that blame may fall on you.
In cases like these, your tenants’ renters insurance policies can come to your rescue. It can help pay for your tenants’ temporary living expenses, reimburse them for their lost items, and reshift the focus from you, to your tenants’ insurer.
Let’s be real: There are many situations where personal liability coverage comes in handy – say, your tenant hosts a party and someone slips and falls, or their neighbor comes over to help make dinner and cuts their finger while chopping the salad.
Renters insurance policies include liability and medical payments to others, so if someone claims
to be injured due to your tenant’s actions or negligence, their renters insurance may cover legal fees and may also pay to cover damages they’re found liable for.
If it’s something small (read: under $5,000), their medical payments to others coverage will kick in, but if someone decides to take some unfriendly steps and sues your tenant, their personal liability coverage will have their back.
Liability coverage can make a huge difference when legal bills and medical fees start racking up! So if your tenant unfortunately caused damage not only to your home, but to other units in the building, they’ll be in a costly bind.
No one wants a bunch of insurance companies chasing them for damages they caused. Your tenant will thank you for making them get their own tenant liability insurance.
How does renters insurance help my tenants?
Making renters insurance mandatory for your tenants doesn’t have to be a deal-breaker.
Here are some of the benefits of renters insurance you should make sure your tenant understands:
A common misconception about renters insurance is that it’s pricey, so communicate to your tenants that the average cost of renters insurance is probably lower than expected and that a very basic renters insurance policy can cost as little as $5 a month (thanks to the help of AI)! Most policies allow you to customize your coverages to fit your lifestyle needs, so renters insurance doesn’t have to be a significant out-of-pocket expense.
A renters policy may cover others living with your tenant, too! If your tenant is living with anyone related to them by blood, marriage, or adoption, they’ll automatically be covered by the tenant’s renters insurance policy. They’ll just have to make sure to get enough coverage for everyone.
They can determine just how much coverage they need when they add other people to their policy. If they’re living with their significant other, they’ll need to be added to the policy as what’s called an ‘additional insured.’
FYI – roommates aren’t covered by a typical renters
insurance policy. You’ll have to tell them to get their own!
If your tenant has a dog, and you were wondering, “does renters insurance cover dog bites?” you’re in luck. If your tenants’ dog bites someone, their policy has them covered.
The cool thing about this one is it applies both when they are at home or at the park. There are two exceptions though: They’re typically not covered if the dog has a history of biting, or if the dog is categorized as high-risk or “vicious.”
And that’s just a part of the benefits of renters insurance for your tenants. You can be an even better landlord if you help them figure out how much renters insurance costs. Everyone’s lifestyle is different, so be sure to help ‘em figure out what kind of coverages their lifestyle requires.
Part of figuring out how much coverage your tenants need is determining how much their stuff is worth. It’ll help them ensure their coverage amounts reflect the real value of their stuff.
Spring has sprung, and warmer weather is well on its way in many parts of the country. For residents, this means pool parties and outdoor barbecues are on the horizon. For property managers and landlords, it’s a whole different story. The departure of winter means it is time to inspect your properties to evaluate any damage the cold, snow, and ice may have caused and prepare for the summer heat.
The spring maintenance guide for property managers, by property managers.
We asked our social media audience of property management professionals, what was on the top of their to-do maintenance list for this spring and used their tasks to build the ultimate checklist for property managers. See the list below!
What’s the first thing that happens when the
sun begins to shine, and the weather warms up? People want to be outdoors. Inspect the landscaping at your property to see what needs to be shaped up: trees and shrubs, new soil or lawn fertilizer, flower beds, etc. These tasks are critical for the TLC of your grounds as summer nears.
If your property features a deck or patio, now is the perfect time to get it in pristine condition so that your residents can enjoy them to the fullest. Power washing an outdoor deck each year helps keep it looking new and minimizes the havoc that may have been caused by the blankets of ice, snow, and sleet it faced.
Spring is a great time to give the exterior of your property a face lift, and a fresh coat of paint can work wonders for any property.
Whether you opt to smarten up the entire property or decide to just paint the front doors, this task will give you added curb appeal throughout the spring and summer.
Debris clogs over time as leaves, branches, and grime fall onto the roof. The buildup can take a toll on your gutters, causing them to rip off or cause leaks that will damage the walls, siding, and roof of your buildings. Water leaks can develop into mold, which leads to health issues and additional maintenance to treat.
Extremely low temperatures can affect your air conditioning systems, causing problems when your tenants decide it’s time to start up the A/C. It’s important to inspect your units in the spring to make sure everything is still intact (panels, pipe insulation, outdoor coil). If you cover the coils for winter, make sure to remove the covers before your residents restart their systems.
Caulk on windows and doors may have worn during the winter. Inspect these areas on the exterior of your buildings and re-caulk as needed. Test for air leaks as well you don’t want the cool air inside your units escaping through unfilled cracks.
Inspect any exposed wood on your porches, deck, doors, and windows for rot, insect damage, etc. and take the necessary steps to repair. Getting this task completed before the April showers cause more damage will benefit you in the short and long run.
Examine the windows of your property and make sure the screens are in good shape. Holes and tears make it easier for pests to get into your units. If you spot any window screens that have damage, be sure to replace them so your residents can enjoy the warmer weather that’s heading our way.
If your property offers residents access to outdoor gas grills, you’ll want to make sure they are tuned up and ready for BBQ season. Give your grill a deep cleaning, replace the grates as needed, prep the propane, and you should be ready to go – Happy grilling!
The final exterior task on our list is making sure you’re providing top-level comfort for your residents. Outdoor lighting on walkways/ patios may have been damaged during the winter replacing bad bulbs and lighting equipment will help tenants feel secure on your property at night. If you have an outdoor area that has furnishings, you’ll want to
conduct a quick inspection to make sure that the cushions aren’t worn and that the furniture is in safe, usable condition.
People aren’t the only ones who want to hideaway inside during frigid months. As temperatures warm up, pests will come out of hiding as well. You’ll want to wipe down windows, as well as checking/treating for ants, wasps, cockroaches, and other pests that may be hiding out in your units this spring.
Preparing your plumbing for the spring is different than prepping for the colder months. It’s a good time to do a few basic tests to make sure your systems are working the way they’re supposed to. Check both indoor and outdoor faucets, pipes, and sump pumps, as well as irrigation systems and patio drains. The
change in temperature can cause leaks and blockages, which you’ll want to fix right away.
During the winter, sediment can build up in hot water tanks. How much/how fast sediment builds up will depend on where you live and what type of tank you have. Draining the sediment will help your water heaters last longer. This is also a good time to double check temperature gauges and reset them for the spring if needed.
If your units contain battery-powered detectors, remind your tenants or task your maintenance team with changing the batteries in all smoke and carbon monoxide
detectors. Spring is also an ideal time to run tests to make sure all safety systems on your property are working correctly to ensure everyone is safe and protected.
As the seasons change, indoor air filters are likely ready for a change as well. Be sure to use this time to replace your filters. Changing furnace and A/C filters ensures that your tenants are getting the maximum benefits from your property’s HVAC systems. Air filters defend your units from countless air pollutants that your residents would prefer to stay outside. Plus, dirty A/C filters don’t just hurt your air quality; they’ll hurt your wallet.
This task may seem simple, but it’s extremely important and often overlooked. The U.S. Fire Administration reports that every year nearly 3,000 home fires are started by clothes dryers, and the leading cause is the buildup of lint. When ducts, hoses, and vents are congested with lint buildup, dryers can overheat, causing a fire to ignite.
If you live in a part of the country that receives heavy snowfall during the winter, you may want to use this time to inspect the carpets in your units. Snow, slush, and salt were probably tracked in during the past few months, causing your beautiful flooring to look dirty and damaged. Inspect, clean, and repair as needed.
We hope this checklist helps in getting your properties in tip-top shape for spring! A special thank you to the members of our online community who submitted their tasks to us on social media.
Despite an uncertain market, experts agree there is some good news for homeowners.
"A lot of homebuyers that weren't able to get in the last couple of years because of how hot the market was. We're now seeing them be able to come in and negotiate and actually buy homes," said Jared Cook, a mortgage manager with Zions Bank. But interest rates -- and the cost of borrowing -- are back in the rise. Cook said there was bit of a slump, but rates increased again last month after a "hot inflation report."
We might see another interest rate hike later this month. During a Senate
Banking, Housing and Urban Affairs Committee meeting on Tuesday, Federal Reserve Chairman Jerome Powell said interest rates will likely increase again.
"Although inflation has been moderating in recent months, the process of getting inflation back down to 2% has a long way to go, and it's likely to be bumpy," Powell said.
Federal Reserve economic data shows the average 30-year fixed-rate mortgage is almost 6.7%, which is about 2.5% higher than a similar mortgage one year ago.
Cook said potential homebuyers should watch their debt.
"Make sure that you have very little debt," he said. "So you have as much as possible to use as much of your income toward the down payment so that you can qualify."
The median home sales price in Ada County is $465,000, according to Boise Regional Realtors data. While affordability is still an issue, long-time real estate agent Mike Brown said there's no better time to buy.
"That interest rate can be adjusted over the course of time," Brown said. "And in six months or a year when interest rates come down, you can adjust your interest rate down by doing a refinance. And when you've got the house of your dreams at the lowest price that you could."
Experts also agree shopping around for the right real estate agent and
mortgage rates make a big difference.
"Not everyone has the same mortgages," Cook said. "Some people have different terms, especially when you compare between banks and mortgage companies. Just shop around to make sure you're getting the right product for you."
Brown predicts year-over-year inflation numbers will decrease in mid -May, which would likely lower interest rates as well.
March 20th, marks the spring equinox and the end of the coldest days of winter. With the start of a new season comes a fresh opportunity to find ways to save energy and money.
Here are just a few simple things you can do to improve the energy efficiency and comfort of your home as warmer temperatures arrive:
1. Service your air conditioner. Easy maintenance such as routinely replacing or cleaning air filters can lower your cooling system’s energy consumption by up to 15 percent. Also, the first day of spring could serve as a reminder to check your air conditioner’s evaporator coil, which should be cleaned annually to
ensure the system is performing at optimal levels.
2. Open windows. Opening windows creates a cross-wise breeze, allowing you to naturally cool your home without switching on air conditioners. This is an ideal tactic in spring when temperatures are mild.
3. Use ceiling fans. Cooling your home with ceiling fans will allow you to raise your thermostat four degrees. This can help lower your electricity bills without sacrificing overall comfort.
4. Cook outside. On warmer spring days, keep the heat out of your home by using an outdoor grill instead of indoor ovens.
5. Install window treatments. Energy efficient window treatments or coverings such as blinds, shades and films can slash heat gain when temperatures rise. These devices not only improve the look of your home but also reduce energy costs.
6. Caulk air leaks. Using low-cost caulk to seal cracks and openings in your home keeps warm air out -- and cash in your wallet.
7. Bring in sunlight. During daylight hours, switch off artificial lights and use windows and skylights to brighten your home.
8. Set the thermostat. On warm days, setting a programmable thermostat to a higher setting when you are not at home can help reduce your energy costs by approximately 10 percent.
9. Seal ducts. Air loss through ducts can lead to high electricity costs, accounting for nearly 30 percent of a cooling system’s energy consumption.
Sealing and insulating ducts can go a long way toward lowering your electricity bills.
10. Switch on bathroom fans. Bathroom fans suck out heat and humidity from your home, improving comfort.
Check out our home cooling and landscaping infographic s for more ways to cut energy costs this spring.
And visit Energy Saver for additional tips on improving your home’s energy efficiency.
Lawsuits are everywhere and they can happen to anyone including you.
Rental properties are a lucrative investment but they come with the risk of litigation. Aside from making sure that your property is “rent-ready”, you should also make sure that you’re prepared to defend yourself in case you’re facing legal action.
Below, let’s take a look at eight things you can do to prevent nasty lawsuits:
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 should hold on to pertinent documents that may be considered as evidence.
This includes all landlord-tenant communication including emails, text messages, call logs, and the like. Whenever you’re discussing important matters with your tenant (e.g. late rental payment fees, eviction, etc.), it’s best to stick to written modes of communication.
Although the US doesn’t have federal-level 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.
Data privacy laws apply to all landlords and property managers that collect personal information from their tenants. This includes the information found in the rental application.
A property owner’s typical landlord insurance won’t cover the costs of replacing the tenant’s belongings in the event that they get destroyed or stolen. It also won’t cover the tenant’s medical expenses should they get injured on the property.
To protect yourself from lawsuits, consider requiring your renters to obtain renters insurance. Not only does it protect your tenant’s personal property, but it also guards you in the event that your tenant decides to sue.
Keep in mind that including this clause in the rental agreement may be prohibited in certain states. Be sure to check with your property manager to ensure that your requirements are within the law.
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 their rented space without the interference of their
landlord. This is called the right to the “quiet enjoyment” of their home. As a general rule, you may enter the property only when the tenant has given you permission.
There are, however, exceptions to the rule. You may enter the rental unit without notifying your tenant when:
• There is an emergency (e.g. gas leak, fire, flood)
• The is reasonable cause to believe that the tenant has abandoned the property
• The tenant has been absent from the property for an “extended absence”
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 their financial obligations (e.g. rent payments and utilities).
The law does not require landlords to collect a security deposit from their tenants, however, it would be in your best interest to do so. If you decide to require a security deposit, keep in mind that some states have set a cap on the maximum amount that you can collect.
Landlord-tenant laws vary by state when it comes to where the security deposit should be stored. Generally, you shouldn’t store your tenant’s security deposit in your personal bank account since it yields interest.
In Florida, you should keep your tenant’s security deposit as a surety bond, in a dedicated bank account, or a non-interest-yielding bank account. It’s worth mentioning that security deposits stored in an interest-yielding bank account must be returned to the tenant along with the accrued interest.
As a landlord, you should know the Fair Housing Act (FHA) by heart. The FHA protects “protected classes” by prohibiting discriminatory acts in housing, such as:
• Refusing to rent the property due to 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,
If a prospective tenant sues you for discrimination and if the Department of Housing and Urban Development (HUD) investigates the claim, you may want to consult an attorney. The penalty for first-time offenders can be as high as $16,000 excluding attorney’s fees, damages, etc.
Filing your taxes is a skill you need to master if you’re planning on becoming a landlord. If you intentionally submit a false report of your annual income or claim unfounded tax deductions, you may soon be getting a visit from the Internal Revenue Service (IRS).
However, if you made an innocent 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 property management company that has its own team of attorneys and accountants to ensure that you don’t violate the law.
With over 10 years of mortgage lending experience, Jesus is someone who takes pride in his work and is dedicated to providing guidance to those looking to purchase, refinance, or renovate their home. He has an in depth understanding of the mortgage process and will utilize that knowledge and expertise to obtain the best options for your financial needs.
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In the unpredictable home lending market, we stand out as one of the most credible mortgage lenders in Connecticut, and we are now the #1 First Time Homebuyer CHFA Lender In Connecticut. We serve as your safeguard and offer you complete security, safety and peace of mind that only the highest-trained professionals will work with and for you.
You will be in the hands of one of the most experienced Connecticut mortgage lenders, helping make the home buying experience fun, easy, and stress-free! It’s no wonder why we are the preferred Connecticut mortgage lender of individual homeowners, real estate professionals, home builders and financial advisers.
The process to apply for a rental unit looks much different than in years past. Rather than meeting with a landlord in person, applicants can send an application online without ever meeting face-to-face.
Zoom calls are common, as are virtual showings.
Reducing fraud should be a top-tier concern as it becomes more and more commonplace. Every day we are hearing of more scams, from people queuing up people to be their ‘landlord’ for references, to sophisticated operations generating paystubs, and even tax returns.
The digital pool of applicants adds more people to the pile of applications we are getting for every unit, but quite frankly, many of them are looking for a ‘mark’ that they can get one over on via one trick or another. Small landlords are easier to deceive than major management companies due to the belief they have a less robust set of tools.
One of the leading credit bureaus Trans Union (which is TenantTracks’ primary vendor) conducted a study in 2020 about application fraud. They found in addition to the switch from in-person applications to digital applications, the COVID-19 pandemic was another contributing
factor to the rise of fraud in the rental housing industry.
They found that:
41% of respondents discovered fraud after move-in
67% are concerned about the future of fraud growth
Over the course of the coronavirus pandemic, fraud has steadily increased, and 22% of applicants failed authentication or were identified as high risk. During the pandemic, fraud reached a high of 15% compared to 10.3% over the same period in 2019.
It’s important for landlords to understand the risk factors of fraud, as it can result in several negative consequences. Some lasting impacts of fraud, as identified by Forrester (who conducted Trans Union’s study), include:
Increased repetitional damage: 59%
Increased evictions: 51%
Internal time spent comparing applications to find discrepancies: 46%
Increased financial loss: 35%
Lighter vacancies: 32%
Increased bad debt: 22%
The best way to catch fraud is to have systems in place to prevent it. Through the process of identity verification, you can make sure that you are speaking to the person you believe that you are speaking to. Cross referencing the information you see can show you what lines match up and what doesn’t. Does their governmentissued ID match with their other records? That can include credit information, eviction history, criminal history, and employment records.
Start with a completed rental application. Everything should be filled out, and of course, a full release to conduct an extensive background check. If you are doing this online, have them upload a copy of their government issued ID for a first line defense. If the information on the ID and the application do not much, that should be your first red flag.
From there, you can verify everything your applicant provided, and whatever is required within your rental criteria (you do have a WRITTEN criteria checklist, right?), is accurate and meets with your expectations. That would include checking for omitted information, noticeable gaps in their rental or employment history (cue criminal records possibility here), or references that just don’t seem to be as accurate.
With increased digitization comes more types of fraud.
We have all heard of data breaches. Fairly every week we are being notified that our own data has been compromised and offer us credit monitoring free. You should take
advantage of these offers. Forrester estimates that one recent breach alone caused an increase 5% to 10% in identity theft-related fraud in the U.S.
With fraudsters becoming smarter, companies are having difficulties staying ahead of their advanced tactics. Some types of fraud landlords should be aware of include:
• Rental application fraud: This the practice of lying on a rental application, whether it be providing false income or uploading an altered photo.
Synthetic fraud: This is one of the fastest-growing types of fraud. It’s where an applicant creates a fake identity using real and false information. For example, a fraudster may create a fake Social
• Security number and pair it with a real address to create a fake identity to gain access to a rental property.
• First-party fraud: This type of fraud is performed by the individual, which is typically the tenant, where they use fake or altered information, such as pay stubs and previous addresses, to qualify for a rental property.
• Third-party fraud: This is when an individual uses another person’s identity or information to qualify for a rental property, such as misrepresenting who they are with someone else’s Social Security number, name, and date of birth.
Much of this can be mitigated with adequate screening both on the duediligence phase of calling landlords and employers, verifying documentation, and during the tenant screening report.
You must learn how to QUALIFY the 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.
Consumer reporting agencies are extremely good at returning complete and accurate information even when identities are manipulated. It’s central to their business and there are extraordinary business and regulatory pressures on them to do this well.
They must have sophisticated tools for finding addresses, social security number fraud, address matches and mismatches, soundex and nickname logic, and a host of other tools to correlate the data supplied vs the output data that paints a complete picture of the applicant and that it is actually the individual applying.
The more homework you do at the outset to prevent fraud, the better the outcome for your bottom line. Visit TenantTracks.com for more information and all your tenant screening needs!
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.
Next Meeting: Mar. 15th
Time: 1:00 PM
Where: Zoom
Contact: 800-369-6153
About: How To Handle NonCooperative Tenants
It's 2023 and real estate is rapidly changing as more pro-tenant legislation is passed. We'll show you how to take back control, get back money owed and protect your properties, now and planning for the future.
• Demo of powerful Tenant Performance Reporting feature in TenantTracks
• Learn how to report rent payments to the credit bureau
• Understanding the impact of collections for you AND your ex-tenant
• Live Q&A about handling bad tenants
Register here!
Next Meeting: Mar. 20th
Time: 5:45 PM - 9:00 PM
Where: Sheraton Rocky Hill
100 Capital Blvd.
Rocky Hill, CT 06067
Contact: 860-265-4414
About: Rocky Hill Main Monthly Meeting with Howard Pitkin and Bernard Sweeney!
Howard Pitkin & Bernard Sweeney - Banking Financing & Starting a Business.
Register here!
Next Meeting: Mar. 21st
Time: 5:45 PM - 9:00
Where: Keller Williams 2777 Summer St. Suite
Stamford, CT 06905
Contact: 860-265-4414
About: Lending Fundamentals can be great way to create passive income from real estate understand Lending Options owning rental properties. But there is a lot to learn before diving in! We will cover:
• Fix & Flip Loans
• Multi-Family Bridge Loans
• Rental Loans
• Fix to Rent Loans
• And more!
Register here!
21st PM Williams Suite 700 4414 a passive estate and Options properties. learn
Next Meeting: Mar. 22nd
Time: 9:30 AM - 3:00 PM
Where: NHMR Classroom
2730 Boston Post Road
Guilford, CT 06437
Contact: 203-234-7700
About: NHMR is teaming up with the CT Blood Drive. Please consider being a part of this life saving event on March 22nd!
Use the link below to find more information.
Register here!
Next Meeting: Mar. 28th
Time: 5:00 PM - 7:30 PM
Where: GHAR
430 New Park, Main Floor
Hartford, CT 06106
Contact: 860-561-1800
About: Join the GHAR Gov't Affairs Committee as we chat with legislators from the Greater Hartford area about issues relevant to the real estate industry. Only $10! Appetizers, drinks, and non-alcoholic beverages provided. Current confirmation: Kerry Wood: State Rep Register here!
Next Meeting: Mar. 29th
Time: 9:00 AM
Where: Litchfield GHAR
21 Prospect St, Suite E
Torrington, CT 06790
Contact: 860-561-1800
About: Ask the Appraiser!
Eli Pascon serves as the Chief Apparaiser for Norcom's Appraisal Management company, ValueQuest.
He brings 15 years of real estate appraisal experience to his position. Eli is also a member of the Appraisal Institute and has his SRA designation.
Topics covered:
• Standardized Property Measuring
• Unpermitted Spaces
• Rent Schedules / Market Rent
• And more!
Register here!
BestWay Mortgage, Brandon Parenti
Phone: (203) 441-4059
Website: Click here!
Mortgages & Loans (Professional Services)
Pro Property Management
The Law Office of Yona Gregory
Phone: (203) 909-6333
Website: Click here! Property Management Services (Professional Services)
Phone: (860) 443-9662
Website: Click here!
Attorney / Evictions (Professional Services)
The Brodrick Law Firm
Phone: (203) 758-8822
Website: Click here!
Attorney / R.E. Closings (Professional Services)
TenantTracks
Phone: (888) 610-4710
Website: Click here!
Tenant Screening (Professional Services)
Tammy Enquist Canfield: Comparion Insurance Agency
ServiceMaster Restore by Recovery Solution
Phone: (203) 695-3893
Website: Click here! Insurance (Professional Services)
Phone: (860) 735-4704
Website: Click here! Restoration (Maintenance & Tradesmen)
Rentdrop
Email: support@rentdrop.io
Website: Click here!
Rent Collection (Professional Services)
Premier Real Estate Investment Group
Phone: (860) 335-0681 Real Estate Multi-Family (Professional Services)
Cesar L. Sousa, Real Estate Attorney
Phone: (203) 583-8299
Website: Click here! Attorney / Personal Injury (Professional Services)
PosiGen Phone: (866) 767-4436
Website: Click here! Solar Panels/Green Energy (Maintenance & Tradesmen)
Pet Screening Website: Click here! Tenant Screening (Professional Services)
Nick Minicucci: New England Residential Finance, LLC
Phone: (203) 509-2717
Website: Click here! Mortgages & Loans (Professional Services)
Landlord Collection Agency Phone: (800) 369-6153
Website: Click here! Collection Agency (Professional Services)
Junk Bear Phone: (860) 378-2801
Website: Click here! Rubbish & Hauling (Maintenance & Tradesmen)
First World Mortgage: Jesus A. Carrero
Phone: (203) 715-0961
Website: Click here! Mortgages & Loans (Professional Services)
The Miranda Team Home Inspections
Phone: (203) 490-7855
Website: Click here! Home Inspections (Professional Services)
Marion Szarzynski, HomeBridge Mortgage Loan Originator
Brenda Tate, Photographer
Phone: (203) 768-5098
Website: Click here! Mortgages & Loans (Professional Services)
Phone: (860) 631-7622
Website: Click here! Real Estate Photography (Professional Services)
Jeff Zappone, Loan Officer at CrossCountry Mortgage
Dawn Cabral, Broker/ Owner, GRI, SRES at West View Properties LLC
Dana M Guiliano
Venoal M. Fountain, Jr., Partner at Hirsch, Levy & Fountain, LLC
Phone: (203) 592-3602
Website: Click here! Mortgages & Loans (Professional Services)
Phone: (203) 228-7564
Website: Click here! Real Estate Residential (Professional Services)
Phone: (203) 419-5857 Attorney / Evictions (Professional Services)
Attorney Emanuele A. Mangiafico
Phone: (203) 336-3144
Website: Click here! Attorney / Evictions (Professional Services)
Phone: (860) 827-8064
Website: Click here!
Attorney / R.E. Closings (Professional Services)
Reckmeyer & Reckmeyer, Law
Phone: (860) 333-5677
Website: Click here! Attorney / Evictions (Professional Services)
Let the Connecticut Property Owners Alliance help promote your business to the Real Estate and Property Owner community through our Vendor Affiliate Member Program!
Your company will be listed in our priority vendor database for all CTPOA members. Our events will allow you to display your promotional materials on our vendor tables, interaction with prospective customers and grow your presence on social media. CTPOA makes it easy for you to gain more customers without spending valuable time searching for them.
To sign up to be a CTPOA Vendor, click here!
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.
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.