Table of Contents

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

By Bob DeCosmo

Advocate For Property Owner Rights

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.

More Government Will Never Be the Answer

By: Rob Sampson, Connecticut State Senator

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.

Is This Spring the Make-or-Break Moment for 2023’s Housing Market?

By: Clare Trepasso, from realtors.com

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.”

So what will the norm in the housing market look like?

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 mystery: What will happen with home prices?

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.