In This Month’s Edition Experts Weigh In On The Unstable Real Estate Market In Connecticut
As Home Prices Rise, So Does Insurance Costs
Elements Of Tenant Screening And Why Is It Important?
Lamont Signs The Budget
May 2022
Published by:
Table of Contents Publisher’s Message A Message From Bob DeCosmo, President Of CTPOA
News And Views From The Capitol Lamont Signs The Budget
Realtor Report Experts Weigh In On The Unstable Real Estate Market In Connecticut
Insurance Insights As Home Prices Rise, So Does Insurance
Property Management Tips & Tricks 7 Property Management Tips & Tricks For Success
Helping Property Owners Since 1994
Published by: CTPOA
CTPOA’s Mission:
Financially Speaking A Financial Plan For Your Home
Get Energy Efficient 10 Energy Saving Tips For Spring
The Legal Corner Top 10 Tips For Landlords
Vendor Spotlight ServiceMaster Restore, specializes in restoration services for your property!
Tenant Screening Tips & Tricks Elements Of Tenant Screening And Why Is it Important?
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 Owner Rights Connecticut Landlords Survive Legislative Session The legislative session ended at midnight on May 4 th, much to the relief of those of us working the housing proposals on the side of the property owners, rental agents and property managers. Never in the history of our State had so many progressive housing policies been proposed that made it out of the Housing Committee and were viable Bills right up to the last day of the session. In the end, three Bills passed that impact housing. 1. SB 4 allows electric charging stations to be installed on an owner’s property, but all costs associated with these stations must be paid by the tenants. The Bill is phased in over the next 3 years based on the number of units in the apartment building. 2. HB 5205 mandates Fair Rent Commissions be established in every city with a population over 25,000
04 / Publisher’s Message
3. HB 5045, a proposal that dramatically lowers the blood level were a child is considered lead poisoned was signed into law by the Governor. This is a serious matter and at such low blood lead levels, many more property owners will be forced to provide costly lead-abatements to their units. Owners should be pro-active and seek out low-cost funds and grants now to remediate lead from their buildings before the funding runs out!
This year could have been a disaster for housing providers as Bills to limit lookbacks on eviction records to just one-year, limit application fees a landlord can charge, do away with lapse of time evictions, make housing a basic human right and require
energy labeling for rentals all had momentum at some point. What we consider good policy, others consider it bad policy. The Legislature is full of different opinions and it’s something that can’t be ignored if you are an owner of rental property, you need to get involved. Next session, all the bills that didn’t make it will all be back. Advocates from both the tenant and landlord side will be engaged once again in pushing for
housing policy that favors their opinions. Hopefully owners of rental property will not ignore this new reality and understand now legislative advocacy is part of their role as a landlord. Remember, most legislators never managed rental property and the squeaky wheel gets greased…. owners must be prepared for another round of protenant legislation in 2023 in Connecticut. 05 / Publisher’s Message
Lamont Signs The Budget By: Christine Stuart, with ctnewsjunkie.com Alongside Democratic legislative leaders, Gov. Ned Lamont signed the $24 billion budget adjustment Monday that includes $600 million in tax relief. That’s more than they anticipated they would be
able to offer Connecticut residents this Election year because revenue came in higher than expected, but it still creates about an $800 million deficit in 2024. “I thought about this as our first budget as we’re coming out of COVID,” Lamont said Monday during the capitol bill signing. “And what do we want to accomplish and what is the foundation we want to build upon.” He said the investments in child care and children’s mental health were going to be helpful to get people back to work.
pension debt. “I’d like to give a shout out to Dan Malloy,” Lamont said. “First thing you do when you find yourself in a hole is stop digging. He stopped digging.” He said it’s the “largest or one of the largest” tax cuts in the history of the state. “I really wanted this to be a middle class tax cut,” Lamont said. The budget also includes a 25 cent gas tax cut, and continues to fund free bus service until December. It creates for one year a new $250 per -child tax credit for lower and middle earning families and expands for one year eligibility for
the Earned Income Tax Credit, which boosts the tax returns of the state’s working poor. More permanent tax breaks include a provision that caps the mill rate at 32.46 which will reduce
Lamont also said the budget also pays down a
the car taxes in 75 towns and reimburse
substantial portion of Connecticut’s unfunded
municipalities for the lost revenue. The budget
pension liability. The budget enables the state to
also expands eligibility for a property tax credit
make an $3.5 billion payment on its unfunded
and increases it from $200 to $300. Another
06 / News & Views From The Capitol
provision speeds up a plan to eliminate taxes on
Republicans and Democrats alike have used the
pensions and annuities.
budget as a political document. “I know people
The budget leaves much of its surplus unspent, ensuring the state can make a scheduled $3.58 billion contribution to its long unfunded $95 billion debt, including about $40 million in pension debt. “I’m the first governor in four years that did not
want a wedge issue, but I got a problem for you that you can’t solve,” House Speaker Matt Ritter said. “It won’t be the budget.” He said he looks forward to talking about the budget for a long time to come.
raise income taxes and did not raise the sales tax “This is a budget that meets the moment,” Rep. rates,” Lamont said. “I think that’s
Sean Scanlon, D-Guilford, said.
transformative.”
He said there are a lot of things going on in the
Republican lawmakers argued that Lamont
economy at the moment that are out of the state
should have cut even more in taxes, including the government’s control right now. income and sales tax.
“Whether it’s the price of gas or the cost of
This weekend during the party convention,
inflation, we, unlike many other states in this
Republican gubernatorial candidate, Bob
country, were in a position because of the fiscal
Stefanowski, has said decreasing taxes in an
turnaround that we have experienced to do
Election year doesn’t make up for the three
something about that,” Scanlon said.
budgets Lamont has signed to increase taxes since taking office in 2019.
He said Connecticut is paying less on gas than almost every state in the nation and the one-time
“Billions and billions in debt with absolutely
child tax credit means a family making under
nothing to show for it,” Stefanowski said.
$100,000 a year with two kids will receive $500
“Connecticut has the second highest taxes in the
by August.
entire country. We’ve got crumbling infrastructure that most states would be embarrassed of. Retired people on fixed incomes forced to leave Connecticut.”
He said the Republican plan would have required the state winning a lawsuit against the federal government that several red states have been
trying to do since last year to no avail.
On Monday he added: “Apparently, Governor Lamont thinks that he and Joe Biden taking $5,200 out of your left hand pocket and putting $400 back in your right hand pocket is a ‘historic’ tax cut. Frankly, it’s insulting to Connecticut’s working families, seniors, and small businesses.”
“We wanted tax cuts that were targeted to the families who needed it the most,” Lt. Gov. Susan Bysiewicz said. “That’s why we target the car tax and the property tax expansion.” Scanlon said what they did was “actual real relief to people.”
07 / News & Views From The Capitol
Experts Weigh In On The Unstable Real Estate Market In Connecticut By: Julia LeBlanc, with fox61.com These past two years, the real estate
know? The four-bedroom, three
market has been unstable and with
bathrooms, white picket fence, two-
real estate properties asking way over car garage, all that is just quite the asking price, families are struggling to buy homes in Connecticut.
expensive right now," Madonna said. Madonna's realtor, Wesley Krombel, works with about 10 people like him
As the spring season sets in, things
every day. Krombel said the market is
could continue as they are, experts
unstable with a lot of demand and
warned.
very little supplies.
Nick Madonna and his wife have been "We have historically low inventory, looking for a home for almost a year,
which we hit a new record low this
because of the high real estate
winter, not just in Connecticut but
premiums, they downsized to a
nationally. And then you have this
condo.
pent-up demand of buyers who are
"I guess it's the American Dream, you
08 / Realtor Report
looking to buy with historically lowinterest rates," Krombel said.
Low-interest rates make it easy to borrow from the bank, but competition is stiff. Connecticut saw what was called "The New York Wave," which drove up prices and more. "The baby boomers' kids are getting into the home buying. So we have this largest age group in America getting into buying properties," Krombel said. While it is a tough time for buyers, Krombel said it is an amazing time for sellers because they are in the driver's seat. Krombel is encouraging people to list their homes even if they don't have another one lined up because you will get more than before and
over time, it could stabilize the market. "They can really kind of dictate
be forced out of their house," Kromel said. Krombel said it will be at least until the end of the year before things start looking up. Things have not changed much and the winter going into the spring is still intense. "You have to be competitive right now, or you will be outbid," he said, adding he continues to encourage his clients to keep their spirits high.
when they close and they have to understand that they're not going to
09 / Realtor Report
As Home Prices Rise, So Does Insurance By: Paul Nelson, with 2news.com Inflation is affecting every part of the
100% but says it is not necessary to
United States, including the housing
over-insure your home. There are
market. The median home sale price in some other things they can do to help Reno-Sparks has more than tripled since 2010 and construction costs are also rising. As that happens, homeowner's insurance has to keep pace with inflation. Those rates are typically adjusted every year, automatically. "We have an inflation writer in the
policy that will increase," Christina Kantrud, State Farm Insurance Agent said. "It will look at the market rate index every year and it will increase."
themselves.
"It's really important, especially, right now, that homeowners are meeting with their insurance agent and doing an insurance and financial review or insurance checkup, once a year," Kantrud said. Eric Beer and Tom Swan met with their
agent about 10 months before the Pinehaven Fire swept through their Caughlin Ranch neighborhood. Their home was one of five destroyed in the
Kantrud recommends that clients cover fire in November 2020. their home's replacement value at 10 / Insurance Insights
"When we left the house, we thought
Beer did not say who they buy
it was just smoke intensity, so we left
insurance from. Kantrud says that
the neighborhood, thinking we were
State Farm's goal is to replace homes
coming back that night or the next
to be as similar to the original as
morning," Beer said.
possible.
They are renting their neighbor's
"If you've flown in marble from a
house while theirs is being rebuilt. The different country, we want to make could move back in this fall if not
sure that
sooner. Dealing with their insurance
when we
company was a challenge though.
replace
"The insurance company said it was too much money, that they didn't want to put that kind of money into it," Beer said. The company eventually paid to rebuild the $1.7 million home but the new house will be different. The original house was 4,500 square feet.
your home, we can add that same exact marble flooring that you had before," Kantrud said. That is why she encourages annual meetings and for each homeowner to take inventory of their belongings.
The new one will be 4,000 square
"It's important that they also go
feet. Beer says they dealt with eight
through with a camera, write
different insurance adjusters and
everything down, so not only can we
there was a lot of back-and-forth
replace on the outside of the home
before the issues were resolved.
and the structure, but we can also
"We were quite satisfied with that conversation as far as upgrading the
replace what's on the inside," Kantrud said.
insurance needs for personal
She says doing that also speeds up
property, for replacement value, all
the process for clients if they do have
that," Beer said.
a situation where they have to rebuild. 11 / Insurance Insights
7 Property Managements Tips & Tricks For Success By: Servicemasterclean.com Property management requires handling
protocol such as issuing a warning or having
multiple jobs that range from dealing with
the vehicle towed.
tenant issues to negotiating contracts for garbage removal, grounds keeping and janitorial services. Effective property
2. Keep Up-To-Date Books or Hire a Bookkeeper
management keeps everything running
Maintaining organized financial records
smoothly, 24/7. However, things can and do
regarding tenant rent and property expenses
happen. Consider these 7 property
such as maintenance, employee payroll and
management tips and tricks to help smooth out
trash removal is essential. You have to know
various issues and situations.
what money is coming in and what money is
1. Set Protocols and Policies; Remain going out. If your other property manager duties Consistent Property managers must have set policies and
protocols to eliminate miscommunications and
don't allow enough time for bookkeeping, consider hiring a qualified bookkeeper.
3. It’s Okay to Outsource
potential problems with tenants. All property
Sometimes it's simply good business to
rules for tenants should be in writing and
outsource -- like hiring a bookkeeper when
provided upon lease signing. Likewise, it's
you're drowning in financial paperwork. Certain
essential for property managers to have
repairs should also be handled by specialists.
protocols in place for different situations. If a
An apartment with carpet that has been soiled
tenant violates parking policy, then it's up to the repeatedly by pets requires professional property manager to follow through with the
cleaning.
12 / Property Management Tools & Tips
4. Schedule/Perform Routine
6. Attempt to Resolve Disputes First
Inspections to Reduce Problem Risk without Lawyers Regular inspections can help reduce the risk
Many tenant disputes can be solved by
of potential problems in and around the
meeting with the tenant and addressing the
property and its units. Items to inspect include issue. Follow all property protocols before but are not limited to:
threatening eviction and calling in a lawyer. In many cases, the issue can be resolved
•
All smoke/fire alarms
•
Fire/emergency door access
•
HVAC systems
•
Roof and downspouts
•
Decks
Hours
•
Windows (check for cracks and sealant
This may seem like the most simple of all
informally. Most common issues include noise
violations, late rent payments and inability for management to enter the apartment to conduct repairs.
7. Establish and Maintain Office
issues)
property management tips, but it's important
•
for your tenants to know when the
Water lines for laundry areas
management office personnel is available for
5. Maintain Supply of Essential
non-emergency situations. Established
Property Management Tools
business hours allow tenants to contact
Each property has its own list of management tools, which may include promotional/ marketing materials, safety items and paper essentials such as parking permits and blank lease copies. Keeping a well-stocked supply
of property management tools helps the day run smoother and may reduce hassles and headaches. An efficient property manager
property management easily when a maintenance call is needed instead of putting it off and allowing the problem in their unit to worsen, which can lead to costly repairs. Regular office hours also make it easier for prospective tenants to come in and inquire about rental availability. It takes a lot of hard work to successfully manage any property.
also keeps inventory lists for on-site maintenance needs, office supplies and emergency essentials.
13 / Property Management Tools & Tips
A Financial Plan For Your Home By: Richard Koreto, with houselogic.com Do you pay each home-related expense as it comes? If so, you’re missing opportunities
Financial Plan Weekend Exercise? •
How much you have to spend
a financial crisis when a slew of surprise
•
How much you need to allot in the short-
maintenance items hit. So take a holistic
and long-term for necessary maintenance
look at what it costs to operate your house
and voluntary improvements
and set up a home financial plan.
With this newfound grip on your home’s
Start by writing a list of expenses, such as:
expenses, you can create a home financial
for upgrades, or much worse, heading into
plan that’ll help you there for years with
•
Mortgage
•
Taxes
•
Home insurance, including liability
your home finances:
•
Repairs and maintenance, such as new
The Mortgage: Pay It — and Then Some
furnace, roof, painting •
Voluntary upgrades, such as a
maximum enjoyment and minimum anxiety. Here's how to manage other aspects of
Yup, you already shell out a lot for your mortgage, but can you pay more? Even a
swimming pool, a premium range, a new
little extra each month can add up to an
powder room
earlier payoff. Let’s say you have $200,000
What Will You Learn From This Home 14 / Financially Speaking
in outstanding principal and a 20-year fixedrate mortgage at 5%. Your monthly
payment is $1,319.91. But if you can
coverage for your home and everything in
manage to pay another $100 a month, you’ll it. The average cost is $636 per year but save $14,887 in interest.
this varies widely by state.
Advantages of an early payoff, says Alan D. Liability coverage. Protects you from a Kahn, a financial planner in Syosset, N.Y.: •
Less debt means more money to spend
later. •
It feels darn good to own your house
outright as soon as possible. •
Minimal tax loss. Toward the tail end of
lawsuit if someone gets hurt on your property, for example. Your best bet: An umbrella policy. For about $300 a year you can buy a typical $1 million policy. Various disaster insurance policies. Optional policies cover flood, earthquake, and hurricane damage. As part
the life of a loan most of your payment goes of your home financial plan, you have to to the principal, not the interest, so you’re research to see what disaster coverage, if getting only a small tax break anyway.
any, you need in your area, and what your
Of course, if you’re still saving for
standard policy already covers. For $540 a
retirement, put the 100 bucks elsewhere:
year you can buy flood insurance, for
•
A retirement plan
•
An account for the inevitable home
repairs •
example. Don’t Under- or Overbuy Insurance For your basic policy, get homeowners insurance with full replacement
An account for discretionary
improvements, which can raise your home’s
coverage in case your house burns to the ground.
value That sounds simple, but heads up on Insurance: Protect Your Property
calculation. Remember that you own a
Your vegetable garden is pointless without a house as well as the land on which it sits. fence to keep out rabbits; likewise, your
So even though you bought your home for
home financial plan will come to nothing
$300,000, it may cost only $100,000 to
without an insurance “fence”:
rebuild it. Your policy limits should reflect
Homeowner’s insurance. Basic
this. This difference will vary widely by region. 15 / Financially Speaking
Another heads up: Don’t make the common Repairs and Renovations: By Choice or and potentially disastrous mistake of thinking that because your home has fallen in value you need less insurance. If you bought a $1.2 million townhouse in Florida during the boom, it’s true it now may only
sell for $600,000. But the replacement cost of the townhouse hasn’t changed much, so you can’t improve your home financial plan by cutting insurance costs that way. Other ways to cut your insurance budget: •
If you make structural improvements,
such as adding storm shutters, your insurer may give you a break. •
If you belong to certain groups, such as
AARP or veterans’ organizations, your premiums may be lower.
Necessity You own a home, so you’ll be spending money on everything from a new faucet to — surprise! — a new roof. Freddie Mac and other authorities say as part of your home financial plan, you should be prepared to spend 1% to 3% of the market value of the home annually on maintenance. To be extra -prudent, open a savings account and make regular payments until your account reaches 1% to 3% of your home’s current value.
To help you budget:
Start with the inspection report you received when you bought the house. Did the inspector indicate that you would need a new roof in five years? A new furnace in 10?
16 / Financially Speaking
Keep a log of your major appliances’ age so taxes from an escrow account, you need to
you can estimate when they’ll need
budget for them in your home financial plan.
replacing. Some estimated life spans:
They creep up almost every year, it seems. Take responsibility for tracking the changes
•
Roof: 20-25 years
•
Heating systems: 15-20 years
sense of how quickly they’ve risen in the
•
Range/ovens: 11-15 years
past.
•
Water heaters: 8-13 years
Or if your lender handles escrow and you
Then get estimates on what replacements will cost and start saving. Consider ongoing non-emergency maintenance, too. Do you live in New England? Price a snow blower and get bids
in your area: Look over past tax bills to get a
haven’t saved your bills, ask for an accounting. The median annual property tax payment is $1,812, but that hides the enormous range in medians from state to state.
from plow services.
You can generally deduct property taxes on
Resist the siren call of the home equity
your federal return. A tax pro can tell you
loan to take care of everything. That just
how much of a tax break you’ll get, to help
defeats your efforts to pay off the mortgage
you fine-tune your home financial plan.
early.
You may be able to reduce your tax burden
Separate out what you want from what you need. Believe it or not, some outdoor projects recoup more at resale than a kitchen redo. If you can afford to redo, go for it. Just don’t confuse your necessary repairs (new oil furnace — about $4,000) with your discretionary upgrades (Viking range — $6,000 and up). Taxes: (Almost) No Way Around Them Even if your lender handles your property
by getting a reassessment. Do your homework first: Are comparable houses taxed less than yours? Ask the local assessor what formula is used to set tax rates. You can challenge the assessed value and get yourself a rollback.
If you’re in a special group, you might get some help from state or local programs. Check around to see what’s available in your area. New York State, for example, has its Star Program for giving senior citizens some relief from school-related property taxes.
17 / Financially Speaking
10 Energy Saving Tips For Spring By: Caitlin Ritchie, with saveonenergy.com As spring rolls in, it is time to perform
2. Clean your air
seasonal maintenance around your home.
conditioning unit and
Throughout the winter, snow, ice, and strong
get it inspected
winds could have impacted your home’s energy efficiency.
The average home spends about 12% of its
total energy usage on air conditioning. Clutter
Having an energy-efficient home ensures
and debris can affect your air conditioning
you consume less electricity and in return,
unit’s efficiency, meaning it has to work
helps you lower your power bills. Use this
harder to keep your home cool. Clear away
checklist to help you prepare for the warm
leaves from inside or around the unit and
months ahead and save energy this spring.
dust, vacuum, or spray the condenser fins to
1. Understand your home’s energy usage
remove remaining dirt and debris. You should also replace the air filter inside your house
Understanding where you are using the most
and schedule a yearly HVAC inspection with
electricity in your home can make it easier to
a licensed professional.
know how you can reduce your energy consumption. The SaveOnEnergy usage
3. Examine your roof and siding
calculator makes it simple to estimate how
Cracking ice, downed tree limbs, and the
much electricity you use every month and
weight of heavy snow could have dislodged
shows the appliances and devices that
shingles or siding on your home. This can
consume the most energy in your home.
create small gaps that let outside air, bugs, and
18 / Get Energy Efficient
small creatures inside and temperature-
and pet hair will collect on the coils of your
controlled air escape. You can often fix minor
refrigerator and make the refrigerator work
issues yourself, but should contact a
less efficiently. A long-handled brush is
professional for major repairs.
perfect for dusting and cleaning coils on the
4. Caulk around windows and doors to seal any cracks Similar to your roof and siding, harsh winter
bottom or back of the refrigerator. 8. Change the settings for lights that are on a timer
weather could have damaged the seals
You may have set indoor or outdoor lights on
around your doors and windows. These gaps
a timer so they are lit when you get home in
can let cool air sneak outside, impacting your
the evenings. Now that the afternoons are
home’s overall energy efficiency. Check to
getting longer, you may want to reset your
make sure you don’t see or feel any cracks. If
lights for later or turn the timer off altogether.
you do, use a caulking gun to fill them.
Only using your lights when you need them
5. Open the windows on warmer days The spring months often bring varying
will bring down your total energy usage. 9. Clean the grill
temperatures. Some days might be warm
Cooking outdoors is a great way to keep your
while others are below freezing. You can turn
kitchen cool, so pull out your grill from the
off the heat and open the doors and windows
garage and give it a good clean. If it’s a gas
when the temperature warms up. Not only will grill, make sure you have a full tank and check this help you lower your heating costs, it also allows your home to air out any built-up pollutants or humidity. 6. Switch the direction of your ceiling fan In the winter, your ceiling fans should rotate
the lines for any holes or cracks. 10. Lower your water heater temperature As the warm weather returns, it could be time to lower your water heater temperature. According to the Department of Energy, your
clockwise on low speed to distribute the rising hot water heater could cost you more than warm air around the room. In the spring and
$400 annually. Turning down the temperature
summer, the fan should turn counterclockwise by 20 degrees could bring that cost down and to force air down into the room to help keep
will not have a big impact on how hot your
you cool.
water feels. What’s more, it will also mean
7. Clean off the refrigerator coils
your water heater won’t need to work as long and will use less electricity.
Warmer weather means more dust, pollen,
19 / Get Energy Efficient
Top 10 Tips For Landlords By: Beth Dillman, from nolo.com 1. Screen tenants.
Lease or Rental Agreement.
Don't rent to anyone before checking credit
3. Handle security deposits properly.
history, references, and background. Haphazard screening and tenant selection too often result in problems, such as a tenant who
pays the rent late or not at all, trashes your place, or lets undesirable friends move in. Use a written rental application to properly screen your tenants.
Establish a fair system of setting, collecting, holding, and returning the amounts tenants pay up front as a security deposit. Inspect and document the condition of the rental unit before the tenant moves in, to avoid disputes over security deposits when the tenant moves out. Check out your state's law to ensure you are
2. Get it in writing.
handling security deposits correctly.
Be sure to use a written lease or month-to-
4. Make necessary repairs.
month rental agreement to document the important facts of your relationship with your tenants—including the basics about rent payment and tenant responsibilities, as well as when and how you handle tenant complaints and repair problems, how much notice you must give to enter a tenant's apartment, and so forth. For what to include in a lease or rental agreement, see Ten Terms To Include in Your
20 / The Legal Corner
Stay on top of maintenance and repair needs
and make repairs when requested. If the property is not kept in good repair, you'll alienate good tenants, and they may be legally entitled to the withhold rent, repair the problem and deduct the cost from the rent, sue for injuries caused by defective conditions, and/or move out without giving notice.
5. Provide secure premises. Don't let your tenants and property become easy marks for a criminal. Assess your property's security and take reasonable steps
incompetent, you may be held financially responsible. Do a thorough background check and clearly spell out the manager's duties so as to help prevent problems down the road.
to protect it. Often the best measures, such as 9. Obtain insurance. proper lights and trimmed landscaping, are not terribly expensive.
Purchase enough liability and other property insurance. A well-designed insurance
6. Provide notice before entering a unit. program can protect you from lawsuits by Learn about your tenants' rights to privacy; see Repairs, Maintenance, and Entry to Rented Premises. Notify your tenants whenever you plan to enter their rental unit, and provide as much notice as possible, at least 24 hours or the minimum amount required by state law. For state-by-state information, see Chart: State Laws on
Landlord's Access to Rental Property.
7. Disclose environmental hazards. If there's a hazard such as lead or mold on the property, tell your tenants, either before they move in or as soon as you become aware of
tenants for injuries or discrimination and from losses to your rental property caused by everything from fire and storms to burglary and vandalism.
10. Resolve disputes. Try to resolve disputes with your tenants without lawyers and lawsuits. If you have a conflict with a tenant over rent, deposits, repairs, your access to the rental unit, noise, or some other issue that doesn't immediately warrant an eviction, meet with the tenant to see if the problem can be resolved informally. If that doesn't work, consider mediation by a
the problem. Landlords are increasingly being neutral third party, often available at little or no held liable for tenant health problems resulting cost from a publicly funded program. from exposure to environmental toxins in the
rental premises. See Lead Disclosures for Rental Property FAQ. Check your state law for other landlord disclosures.
8. Oversee property managers. Choose and supervise your property manager carefully. If a manager commits a crime or is
If your dispute involves money, and all attempts to reach agreement fail, try small claims court, where you can represent yourself. Small claims court is good for collecting unpaid rent or seeking money for property damage after a tenant moves out and the security deposit is exhausted.
21 / The Legal Corner
For More Information Visit Our Website: landlordcollections.net Give Us A Call: (800)-369-6153
Terri Philibert ServiceMaster Restore
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. 24 / Vendor Spotlight
ServiceMaster Cleaning & Restoration by Cleaning Masters ServiceMaster is a licensed and insured water damage service provider. We provide services to clean and restore all types of
damage while working with your insurance claims representative. The services we offer include, but are not limited to water damage, fire damage, mold, and puffback. We help to protect and maintain residential, commercial, and industrial properties by utilizing our trained technicians and high-quality equipment.
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 25 / Vendor Spotlight
Elements Of Tenant Screening And Why It Is Important By: Mariia Kislitsyna, with landlordtips.com Whether you’re an aspiring landlord, a guru of Let’s find out, shall we? real estate, or somewhere in between, you probably know just how difficult it can be to find a great tenant. In some cases, it can be pretty challenging to find a tenant at all, let alone a good one or great one. One good practice is to run a tenant
Here’s the skinny on checking potential renters and reasons why you should never underrate the significance of the tenant
screening procedure. What is Tenant Screening, Exactly?
screening process. While screening tenants Tenant screening is the process of verifying the history, credibility, and trustworthiness of won’t help your situation when you have too few candidates, it is definitely a helpful tool to a prospective renter. This can be done by asking tenants to provide certain documents, filter out potential “bad” renters and narrow the applicant pool down to a few great
such as credit reports or public records, or by
choices.
obtaining them yourself with their permission
But, is running a tenant screening worth the effort? And, if so, what are the main advantages and disadvantages of prospective tenant screening for you as a landlord?
and using their identifying information. Also, as part of screening future renters, the landlord can contact the prospective tenant’s former landlord or property manager to obtain references and see if they have a great ontime payment history.
26 / Tenant Screening Tips & Tricks
Of course, as a landlord, you can never be
help you to understand better what kind of
entirely sure you won’t have problems, even person the applicant is. We might all have a with a future renter who passes the tenant
couple of speeding tickets, but you can also
screening with flying colors. However, it
discover some more serious issues worth
does provide an increased level of
your attention with a comprehensive
confidence and peace of mind. For
background check for renters.
example, credit scores. As stated on the Experian blog, only 8% of people with a good credit score (670–739) are likely to become seriously delinquent in the future. The Tenant Screening Process In Detail The process and actions involved in vetting renters will vary from landlord to landlord, but there are a few common elements of a comprehensive tenant screening
•
Evictions. If you’ve never had to evict a
tenant in your life, it doesn’t mean the situation on the local rental market follows this pattern. For this reason, always remember to check if your potential tenant had any evictions before. If so, you can always ask a few questions to learn more about the situation rather than denying them immediately (the past year should have taught us that hard times can befall us all!).
procedure. While you don’t have to consider each item,
•
Chat with their current landlord. You
here are a few of the most important
can always call the potential renter’s
aspects of the average tenant screening
property manager or landlord to get some
process:
references regarding the applicant. Thanks to this chat, you can learn if they had any
•
Information about the past and
problems with neighbors, if they pay on
current employers. This will help you
time, and the condition they left the
understand if your prospective renter has a
apartment after their residency.
stable source of income. •
Keep in mind that we’re all human, and it’s
Credit check. You can see how an
ok to make mistakes! Certain info is not as
applicant’s current financial situation looks,
bad as it might seem — for example, 65% of
if they’ve had any problems paying bills in
students graduate with student debt, so it is
the past, and if they have any kinds of loans not so outrageous to see a 27-year-old with to be aware of. a college debt of some sort. However, what •
is important is the way your future tenant is
Criminal history. This is another
common part of tenant screening that will
dealing with it — if they treat it responsibly and are paying it off on time.
27 / Tenant Screening Tips & Tricks
Don’t look for a tenant with a perfect history —
also on some solid facts and data. You can pick
you might never find one. Instead, use tenant
a tenant who is proven to be financially stable,
screening as a guide to see if your potential
never has had any evictions, and has been
tenant has any undesirable behavior patterns
paying off their credit cards on time — all this
which might cause you trouble in the future.
knowledge based on reports rather than mere
Why Is Tenant Screening Important? Now, after discussing what tenant screening is
chatter. It Verifies the Tenant’s Credibility
and which elements to include in a
Many people tend to present themselves in a
comprehensive tenant screening, let’s see why
better light during interviews — to get a
it is so essential to run one every time you’re
desirable job, apartment, or even to seem more
searching for a new renter.
appealing to their Tinder date.
It Helps You Make an Educated Decision
Cross-checking facts is another reason to run a
Choosing a tenant is a decision that will affect you for many years, or one year at the very least. A bad tenant can make your life more difficult, while a good tenant should have as little impact on your life as possible, which is why you always want to find the best candidate. With the help of a proper tenant screening procedure, you can base your choice not only on your interview with the potential tenant but
tenant screening. This allows you to see how honest the applicant has been during your meeting. If they claim that they had a perfect
relationship with their current or past landlord, but it turns out they got evicted for renting out a spare room, it might not be speaking in the tenant’s favor. It Prevents You from Future Hassle and Trouble We all want to have our life as easy and
28 / Tenant Screening Tips & Tricks
smooth as possible. As a landlord, you might
First, as you could have figured out by
encounter many unpleasant situations or
yourself, tenant screening takes some of your
stressful emergencies, but it is in your power
time. From contacting prospective tenants and
to avoid some of them. Choosing a reliable,
asking them to send their credit reports and
honest, and trustworthy renter will save you
references to analyzing the data you receive
lots of time in the long run. What’s more, it will to contacting their colleagues and employers give you some peace of mind knowing that
to verify tenants, it can be a lot of work. This is
you rent out your place to a person you trust.
probably one of the main reasons some
It Might Save You Money in the Long Term This point is not about possible costs you might encounter if your potential tenant
landlords decide to forgo the tenant screening process when accepting a new tenant.
It Narrows Down the Candidate Pool
demolishes a bathroom and refuses to cover
Imagine you had ten potential renters who
the price of repairs or leaves without paying
were interested in your place. However, after
for the last two months (although this might
you asked each of them to send you their
also be the case!). Rather, you should keep in credit report and criminal history, only five of mind that the average cost of searching for a
them got back to you. What’s more, one of
new tenant turns out to be about $2,500!
those applicants had three evictions in the
That’s why it’s crucial to do your very best to
past two years and another maxed out on
pick a (good) renter who has the intention of
their credit cards. The math is simple — it
staying for a long time (and has a history of
leaves you only with only three decent
doing so before).
applicants to consider. While this may save you some time, it may also leave you with too
What Are the Cons?
few candidates in certain situations.
This article is mainly to promote the tenant screening process and to help you understand the importance of having a proper rental
Summing Up As you can see, tenant screening is a process
applicant screening in place. But you might be that requires a little bit of time and some
wondering – are there any drawbacks to
commitment from your side. And, sometimes,
running a tenant screening? Of course, the
it might seem like it is not all that necessary,
points below might seem disadvantageous at
especially if you already feel like the applicant
first, but — spoiler alert — we nonetheless
you met is trustworthy, or if it’s a friend of a
strongly believe in the importance of tenant
friend. However, you can never underestimate
screening!
the importance of tenant screening. With this
It Requires a Bit of Your Time
simple procedure, you can be sure that your rental will be in good hands!
29 / 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.
May 2022 Sun
Mon
Tue
Wed
Thu
Fri
Sat
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
CTREIA
CTREIA
NEI
CTREIA
23
24
26
27
22
25
ECAR CT Monthly Real Estate Meetup
29
30
31
28
Events & Meetings & Networking
Connecticut Real Estate Investors Association (CTREIA)
Connecticut Real Estate Investors Association (CTREIA)
Dartmou Property Inv LLC (NEI Mee a
Next Meeting: May 16th
Next Meeting: May 17th
Next Meeting: Ma
Time: 5:45 PM - 9:00 PM
Time: 5:45 PM - 9:00 PM
Time: 5:30 PM - 8
Where: Sheraton 100 Capital Blvd. Rocky Hill, CT 06067 Contact: (860) 265-4414
Where: Keller Williams Prestige Where: Belvedere 82 Broad Street 2777 Summer St. Suite 700 New Britain, CT 06 Stamford, CT 06905 Contact: (203) 61 Contact: (860) 265-4414
About: Jason Rinaldi will
About: The CTREIA Stamford
About: Interested
outline how property
meeting will be a round-table
currently involved
owners can increase
discussion with experienced
estate and looking
security and resilience
investors covering a variety of
surround yourself
while receiving income
topics. They will discuss their
minded individuals
assurance and the benefit
good and bad experiences in
meetup is open to
of partnering with local
real estate investing, how to
have some form o
housing providers.
handle initial conversations
connection to real
Register HERE!
with potential sellers, and how to just looking to lear get leads through referrals. Register HERE!
More info HERE!
uth Connecticut Real vestors Estate Investors Association etup) (CTREIA)
Eastern Connecticut Association Of Realtors (ECAR)
CT Monthly Real Estate Meetup a a
ay 19th
Next Meeting: May 20th
Next Meeting: May 26th
Next Meeting: May 26th
8:00 PM
Time: 5:00 PM - 9:00 PM
Time: 5:30 PM - 7:30 PM
Time: 6:30 PM - 9:00 PM
e Café
Where: Testa’s Ballroom 26 S Center St. Southington, CT 06489
Where: Freedom Boat Club Where: Sliders Grill & Bar 18 Stafford Street 950 Yale Ave Mystic, CT 06355 Wallingford, CT 06492
Contact: (860) 265-4414
Contact: (860) 892-2595
6053
17-8417
Contact:
or
About: Think real estate is a About: Join us May 26th
About: Our monthly real
in real
man's game? NOPE! 64
for some tasty treats and
estate investor meetup will
percent of all real estate
beverages while you
resume at its previous
with like
pros are women. Come to
network with the members
location at Sliders in
s? This
this unique WOMEN'S
of the Home Builders &
Wallingford the last
ONLY event to hear from
Remodelers Association of Thursday of each month.
g to
all who
of a estate or
rn more.
some of the most inspiring & Eastern Connecticut and
All real estate investors
successful leaders in real
the Eastern Connecticut
welcome regardless of
estate & entrepreneurship in Association of Realtors.
experience! Other real
the Northeast & US.
estate vendors also
Register HERE!
Register HERE!
welcome, but this is a no sales environment. More info HERE!
P. (800)369-6153
F. (888)900-9773
E. info@ctpoa.com
www.ctpoa.com
CT Real Estate Today allows you to hit your target audience for all things real estate. Contact us at info@ctpoa.com
ADVERTISE WITH US!
Becom
V
The Conne composed o REALTORS improve the bu
Follo
me a CTPOA Member!
Visit: https://ctpoa.com/
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.