Earlier this year property values reached an all-time high but lately, some markets have cooled off due to higher mortgage rates. While high values are generally considered good news, it couldn’t have come at a worse time! The reason is many Connecticut cities were required by law to revalue their grand list this year. With higher property values come increased property taxes for the housing providers.
Next year I predict housing providers will be experiencing a potential whip saw event. In January, I fully expect the tenant advocates to push legislators for rent control or rent stabilization. However, in July most housing providers will be dealing with much higher property tax burdens, meaning they will be negatively impacted in two directions.
I hope our legislators understand that rent control has never worked anywhere it was instituted and they shouldn’t go near this. Legislators just need to remind themselves of the disaster they created when they “Deregulated” Connecticut’s electric rates. We went from one of the lowest utility costs in the country to darn
near the highest.
With the housing courts closed for an extended period, an artificial shortage of apartment rentals occurred. This In turn had a big impact on the pricing of rents increasing in Connecticut. Combine a short supply of rental units with a demand for apartments by New York residents relocating here and this created a perfect situation for increased rents. There just isn’t much room for housing providers to raise rents in the future to offset the increased tax burdens that are coming next year.
This is especially a problem for urban housing providers as the cities have a disproportional number of non profits operating in their communities and many are tax exempt. Connecticut’s legislature needs to revamp the Payment In Lieu of Taxes Program, also known as “PILOT” because it short-changes our urban centers were we have hospitals, colleges, and state owned facilities. Often the reimbursement rates are not fully funded leaving the cities to make up the difference from the private sector.
There are reports that multi-family property values have appreciated 81% in the city of New Britain since last revaluation. Mayor Stewart’s office wants to meet with property owners in that city and go over the facts.
On October 20th, starting at 5:30, the CTPOA is hosting an “Evening with the Mayor” at the Back Nine Tavern at the Stanley Golf Course located at 245 Hartford Road in New Britain. The event Is free to CTPOA members, but the public is welcome to attend for $10 and includes pizza and one free drink ticket for a domestic beer or glass of wine.
From: cbia.com
Connecticut voters go to the polls on Tuesday November 8, 2022 to vote for the state’s next governor, all statewide officers, one U.S. Senate seat, all five members of the U.S. House of Representatives, and all 187 members of the General Assembly.
Use the Secretary of State’s online locator to find your local polling place.
Connecticut polling places are open from 6 am to 8 pm on Election Day (November 8, 2022). Any voter standing in line at the polls at 8 pm will be allowed to cast a ballot.
Voters in Connecticut have certain rights know your rights before you vote.
You will be asked to provide identification when checking in at your polling place before you vote.
If you’re a first time voter, you must present current valid photo identification that shows your name and address; or a current utility bill, bank statement, government check, paycheck, or government document that shows your name and address; or cast a provisional vote.
All other voters must present their Social Security card or any pre printed identification showing name and address; or name and signature; or name and photograph. If you cannot present identification, you can sign a statement acknowledging your identity.
An optical scan machine is used by most in person voters.
A vote-by-phone option is available at every polling place for voters with disabilities or for any voter who prefers this option.
If you can answer yes to any of the following questions, you are eligible to case an absentee ballot:
• Are you an active member of the armed forces of the United States?
• Will you be out of town during all the hours of voting on Election Day?
• Does illness prevent you from voting in person on Election Day?
• Do your religious beliefs prevent you from performing secular activities like voting on Election Day?
• Will you be performing duties as an election official at a polling place other than your own during all the hours of voting on Election Day?
• Do you have a physical disability that prevents you from voting in person on Election Day?
The Connecticut Secretary of the State’s office will mail absentee ballot applications for the November election to the state’s more than 2.1 million registered voters 31 days before the election date.
You may also download and use the following absentee ballot application:
Application for Absentee Ballot (English) Solicitud de Boleta Ausente (Español)
For an emergency ballot within six days of an election, please use the Emergency Application for Absentee Ballot:
• Emergency Application for Absentee Ballot (English)
• Solicitudde Emergencia para Obtener Papleta para Voter en Ausencia (Español)
You should return your completed absentee ballot application to the municipal clerk in the town in which you are a registered voter in Connecticut.
Absentee ballots will be mailed to approved applicants beginning 31 days prior to the date of the general election. If your application is received within 31 days of the election, your ballot will be mailed to you once your application is processed.
Complete the ballot, carefully following the enclosed instructions and return it by mail or in person. Only complete absentee ballots received before the close of polls on the day of the election will be counted.
By: Matt Hughes, with newhavenlistings.com
Selling a house can be stressful, time consuming, and expensive. In fact, it can be more expensive than most sellers might expect. While the real estate commission is usually the biggest fee a home seller has to pay, there are many other costs that you must take into account. If you are planning to sell your home in near future, it is important to be aware of and be prepared for all the hidden costs of selling a home.
Home preparation costs Cleaning: Before your showing, you would want to hire professional cleaning services for your home as well as your windows and carpets.
Landscaping: The first impressions can make a lot of difference when you are trying to sell your house. You may want to enhance the curb appeal by adding some seasonal flowers,
mowing the lawns, pruning the trees, and lighting the walkway.
Staging: The staging costs vary widely depending on the size of your home and how much you want to do, and whether you want to hire a professional or do it or you want to take the DIY route. Over 18% of the sellers’ agents believe that home staging can increase a home’s value by 6% 10%. 31% of the sellers’ agents believe that staging can greatly decrease the time a listing spent on the market.
Home improvements: Some home sellers invest in home updates or upgrades with the goal to get a higher sale price for their property. It has been shown that 79% of the sellers go for home improvements before listing their home for sale. They either repair or replace old systems or add features that buyers love.
Other costs: Apart from these costs, sellers may also spend on professional photographs and on other marketing activities.
In a real estate transaction, there are closing costs for both buyers and sellers. As a seller, you may have to pay anywhere between 1%3% at closing. The main costs you will pay include the closing fee (which goes to the closing agent), attorney fee, property taxes, transfer tax, recording fees, and title insurance. You may also have to pay a brokerage fee, escrow fee, courier fee, and any other costs associated with paying off your mortgage.
Many sellers use the proceeds of their home sale to pay off their mortgages. However, the payoff amount on the mortgage statement is usually a little less than the actual amount owed. You might have to pay prorated accrued interest in the total balance. In some cases, a prepayment penalty may also be charged.
If you are selling your primary home, you will have to pay moving costs as well. Moving expenses can vary greatly based on the size of your home, how far you are moving, and how many belongings you have. In case you choose to use professional moving services,
you should be prepared to bear additional expenses.
If you are selling your home and buying another, there is likely going to be a time gap and you will have to arrange for temporary housing in the meanwhile.
These are some of the typical costs associated with selling a home. There could definitely be more costs to selling a home. A good estimate would be about 10% of the home’s sale price. It is best to discuss this with your real estate agent and they can give you a correct estimate.
Matthew Hughes is the broker/owner of FarmRiverPropertyManagementLLC. Matthew works with landlords and property owners to create value in today’s competitive real estate market. His business provides full service property management, brokerage and leasing services He has personally marketed over 160 properties in Greater New Haven area. His website is https:// newhavenlistings.com/
Join the Government Affairs Committee of GHAR as we taste some bourbon and chat with 2022 legislative candidates from around Greater Hartford. Let's listen and share our thoughts on the future of homeownership and property rights. Only $10 fee includes catered food and varied beverages. All are welcome!
Thanks to sponsor: Bob DeCosmo of TenantTracks
By: Jonathan Theders, Chief Executive Officer, RiskSOURCE Clark-Theders from ec.edu
The Consumer Price Index (CPI) increased by 7% in 2021, marking the largest yearly increase in inflation since 1982, according to the Bureau of Labor Statistics (BLS). Unfortunately, we’re all becoming familiar with the rising cost of groceries and dining at a restaurant. What you may be less familiar with is how inflation affects commercial property insurance.
Replacement cost, or value, is how much it would cost to replace or repair a building with the same or similar materials. It is based on the amount needed to hire contractors and purchase materials. The market value of a property is not the same as the replacement cost. Market value is the estimated amount that a property would sell for on the date of valuation and includes land. While a property’s market value will typically be greater than its replacement value, we are now seeing a shift in
the other direction. The main concern with high inflation rates is having an adequate replacement cost estimate on your policy.
Most property policies have a provision that accounts for a small percentage of inflation. However, the cost to replace a building today may already be more than the inflation guard on your policy. Labor and supply shortages in the construction industry have caused replacement cost to increase more, and more quickly, than usual. The Producer Price Index (PPI) for many construction materials, according to the BLS, increased between 10% and 30%, with steel at 127% in December 2021. This rapid increase in labor and supply costs means that the estimated replacement cost on your policy may not be enough to cover a rebuild if you had to file a claim today.
1.Reviewthedetailsofyourproperty coverage terms and conditions.
Many businesses only look at the fine print after a claim occurs, when it is already too late. Make sure you understand how various potential claim scenarios could play out and that you are not left on the hook for something you thought was covered. Make note of anything you don’t understand so you can go over it with your agent. Also, it may seem obvious, but double check that the company name(s) and address(es) listed are correct.
2. Confirm that replacement cost coverage is part of your policy.
There are some instances where it makes sense to have actual cash value or functional replacement cost coverage for a property, but most commercial properties will be best protected with replacement cost coverage.
3. Make sure the replacement cost estimate is accurate.
Even with normal levels of inflation, your agent should visit the property or ask for detailed information on the property’s construction. Structure and construction material specifics, such as floor and wall coverings, can alter the estimate by quite a bit. Most agents have an estimation tool that has default settings for specific structure types, such as an office building or retail store, but if your building differs from this, and
most do, the estimate will need to be adjusted. Now, with unusually high reconstruction costs, you want to make sure that the estimate is done using current labor and supply costs. It may be a good idea to reassess this on a quarterly basis while current inflation trends continue.
4. Talk to your agent – they are your risk advisor.
Your agent is there to help you address many of the risks your business faces use them as a resource. If you don’t feel confident that you truly know what is and isn’t covered in your policy, ask your agent to go over it with you. Even if you’ve recently renewed, make sure that your replacement cost estimate is adequate. Insurance markets will continue to change in the foreseeable future. Start discussing upcoming renewals earlier than you typically would, so you can be prepared.
For more information, contact Jonathan Theders, CRA, ACRA, CHSP, RiskSOURCE Clark Theders, at jtheders@risksource.com or 888 779 2800.
First, Housing Providers need to better understand the difference between a pet and an assistance animal. Per HUD, an assistance animal is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability. An assistance animal is NOT a pet.
For many years, special accommodation requests were abused by Pet Owners. On January 28, 2020 HUD provided Housing Providers, Pet Owners and Medical Providers additional guidance to help with this issue. The new HUD FHEO 2020 01 Assistance Animal Notice now requires Pet Owners to provide a connection between the disability and the need for the animal. Assistance animals must now fall within three HUD defined categories. Below are the categories and a brief description.
• Service No proof needed, must have a disability and animal must be trained for a needed task. Only Dogs qualify for this category (except in CA).
• Support Proof needed, must be for a disability related need, no-training required and domesticated animals only.
• Unique Reasonable accommodation may be necessary when the need for a unique animal involves unique circumstances, such as task that can not be performed by a dog or allergies prevent the person from using a dog.
If the proper documentation is not provided to the Housing Provider, the request for the accommodation may be denied. Certificates, registrations, licensing documents from the internet are no longer sufficient documentation. Letters from a legitimate, licensed health care professional are reliable only if the professional has personal knowledge of the individual requesting the accommodation. HUD advised Medical Providers to provide in their accommodation letters information about their relationship with the patient, type of animal, disability related information and need for the animal.
On average 60% of residents have a pet/ assistance animal. Of those households, only 9% are an assistance animal so 91% are traditional Pet Owners. With COVID it seems like many people became first time Pet Owners so that percentage will only increase. By not renting to Pet Owners, you are losing out on a large percentage of potential qualified applicants which may lead to longer vacancy time. Pet Owners are usually willing to pay more to have their pet which increases your revenue and tend to stay longer which decreases your turnover expense.
When considering the cost vs. the benefit of renting to a Pet Owner, you should consider ways you can mitigate the risk associated with pets. You can charge a pet fee based on the level of risk (charge more for a big dog than for a cat). You can charge the Pet Owner for
a mid lease pet inspection to catch any issues early. You can add into your lease fees associated with not cleaning up after their pet. You can require extra pet insurance to reduce your risk of the pet biting someone. As you can see there are many creative ways you can rent to Pet Owners in the future, while mitigating your risk and making a bigger profit.
Many Housing Providers do not have the time or the knowledge to accurately assess and document these type of accommodation requests. Professional Property Managers have access to an exclusive professional pet screening tool that was designed in accordance to HUDs guidance. This can take the stress out of the evaluation for the Housing Provider. Having a consistent Pet Policy and properly documenting the results of the screening will also reduce your risk of being sued for not following the appropriate reasonable accommodation laws for assistance animals.
In conclusion, know the current laws that protect Residents with assistance animals, follow the new HUD guidelines, hire a Professional Property Manager if you do not have the time to do the proper pet screening/ documentation and consider implementing pet policies that allow you to accept pets while reducing your risk and increasing the profitability of your investment.
By: Don Lewis
According to research by the National Multifamily Housing Council, over 44 million people in the U.S. rent their homes. If you own an investment property, you know just how important it is to appeal to these renters and upgrades are one of the best ways to do so. The time and money that you pour into your property can pay off quickly if you choose the right improvements. This is why it’s imperative to ensure that upgrades appeal to prospective renters. Consider the following three features that you should pay attention to when you’re searching for an investment property.
Repairs are the most basic upgrade that any landlord must complete. If there is a known issue affecting the comfort of your tenants or even impacting a unit's livability you need to invest in a solution as soon as possible. This is especially true if the issue affects essential systems like the property’s plumbing or
electricity. Performing these repairs may not raise the value of the unit, per se — but failing to do them will certainly lower it.
When a prospective tenant is looking for housing, they’re looking for a place they can be comfortable — and that’s exactly what the right amenities will provide. Features such as kitchen storage, in unit laundry, and dishwashers can all make a major difference in the appeal your property has and thus the rent you can charge. Although installing new amenities may incur substantial expenses, those expenses can also yield greater rent revenue.
You can’t necessarily upgrade the area that your property is in, which is why you need to look for a rental that’s already in a good area. Location is one of the biggest factors that influence how much a renter is willing to pay.
Other factors such as the type of home are important, too is it a single-family home or a unit in a multiplex apartment? Is the neighborhood best suited to families or is it a lively area in a college town? Answering these questions can help you narrow down the best locations.
Location and amenities aren’t the only issues that can impact the revenue from your investment property. When you purchase a new unit, you need to consider whether you want to manage it yourself or enlist help from a property management company. The latter can be costly, but it can also reduce stress. If you’re planning to manage your property by yourself, renter screening services from TenantTracks can ensure you’re renting to trustworthy tenants.
Similarly, if you’re paying too much in taxes, you may be losing a major portion of your income. Forming a limited liability company (LLC) is the best way to combat this while also minimizing paperwork and increasing flexibility. When forming an LLC, partner with a formation
service to save money research the best LLC services online to handle the paperwork.
Investing in a new property is exciting, but you’re leaving money on the table when you don’t choose the right upgrades. If you want to maximize your rent potential, invest in upgrades such as new appliances and better storage in addition to performing routine repairs. You should also consider whether it’s best to outsource management. Also, forming an LLC can help shield you from risk and allow you to gain tax advantages.
Monday, Oct. 17 at 5:45 pm at the Sheraton Rocky Hill, 100 Capital Blvd.
Rocky Hill, CT.
Tuesday, Oct. 18 at 5:45pm at Keller Williams Prestige, 2777 Summer St.
Suite 700, Stamford, CT.
The speaker will be Damon Remy and the topic is "building your dream business and conquer the uncertainty with a steady flow of leads". He will cover:
How To Go From A Stressed Out Investor Always Worried About
Where The Next Deal Is Coming From…To A Lead Generating Machine.
Here’s what you’re going to learn:
The two most popular lead generating tactics that don’t work anymore
How to get crystal clear on a business model that supports your dream life
How to predictably generate leads
How to close more deals
Cost is free for members and $39.00 for guests.
Contact: 860 265 4414
Register for Monday, Oct 17th here!
Register for Tuesday, Oct. 18th here!
For more than two decades, Damon has made a home for himself on the leading edge of technology. Utilizing the Internet since the dial up days of yore, he continues to create progressive systems that allow companies to operate faster, more effectively, and more profitably!
Damon began his technology career in the US Marine Corps. Hand selected by his commanding general, he played an integral role in scouting, evaluating, and implementing the latest, most advanced technologies. At the time the technologies he utilized, such as IP video conferencing and logistical management systems commonplace in today’s market were groundbreaking and cutting edge, even to the government.
After his military career, Damon’s true nature as tech geek and digital entrepreneur emerged as he consulted with several companies, using technology to streamline and innovate their processes from the ground up. He renewed the operational effervescence of one of the nation’s oldest Pepsi distributers through the complete revitalization of their internal systems.
In 2001, the world of real estate opened its arms to Damon, offering him a place as a consultant with a fast growing mortgage company that focused on real estate investors. In that rapidly expanding high-speed market, Damon developed systems for management workflow, lead tracking, and total business automation that skyrocketed many of his Loan Officers to national production rankings.
It was there in the trenches of the booming mortgage market that the concept for REI BlackBook was born. It’s mission: work more effectively, productively, and profitably by simplifying in house operations. In 2009, after several years of testing, a beta group of REI BlackBook users began seeing exceptional results, leading to the initial public launch and record day 1 sales. Today, REI BlackBook is the software of choice for leading real estate investors and the recommended platform by the nation’s #1 Real Estate Education Company.
The following tips will save money and energy while staying comfortable during the cool fall and cold winter months. Many of these tips can be used on a daily basis to increase your savings; others are simple and inexpensive actions you can take to ensure maximum savings through the winter.
If you haven't already, conduct an energy assessment to determine where to save the most, and consider making a larger investment for long term energy savings.
Open curtains on the south-facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
Be certain to plant deciduous trees on the south facing side of the home, especially in proximity to windows. They will let the light and warmth in the windows during the winter and will shade the windows in the summer.
Use a heavy duty, clear plastic sheet on a frame or tape clear plastic film to the inside of window frames during the cold winter months. Make sure the plastic is sealed tightly to the frame to help reduce infiltration.
Install tight fitting, insulating drapes or shades on windows that feel drafty after weatherizing.
When you are home and awake, set the thermostat as low as is comfortable.
When you are asleep or out of the house, turn the thermostat back to save as much as 10% a year on your heating and cooling bills. A smart or programmable thermostat can make it easy to set back your temperature. But make sure the temperature is comfortable for pets!
If you have a heat pump, maintain a moderate setting or use a programmable thermostat specially designed for use with heat pumps.
If you have a heat pump, maintain a moderate setting or use a programmable thermostat specially designed for use with heat pumps.
Seal air leaks around utility cut throughs for pipes ("plumbing penetrations"), gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets.
Add caulk or weatherstripping to seal air leaks around leaky doors and windows.
Schedule routine service for home heating systems.
Replace furnace and heat pump filters once a month or as needed. Find out more about maintaining furnaces or boilers and heat pumps.
Regularly clean the flue vent of wood and pellet burning heaters and clean the inside of the appliance with a wire brush periodically to ensure that it is heating efficiently. Find other maintenance recommendations for wood and pellet burning appliances.
Reduce Heat Loss from the Fireplace
Keep the fireplace damper closed unless a fire is burning. Keeping the damper open is like keeping a window wide open during the winter; it allows warm air to go right up the chimney.
When using the fireplace, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window slightly approximately 1 inch--and close doors leading into the room. Lower the thermostat setting to
between 50° and 55°F.
If the fireplace is never used, plug and seal the chimney flue.
Install tempered glass doors and a heat air exchange system that blows warmed air back into the room.
Check the seal on the fireplace flue damper and make it as snug as possible.
Purchase grates made of C shaped metal tubes to draw cool room air into the fireplace and circulate warm air back into the room.
Add caulking around the fireplace hearth. Find out more techniques to improve your fireplace or wood burning appliance's efficiency. Learn tips for safe and efficient fireplace installation and wood burning.
Keep the temperature of the water heater to the warm setting (120°F). This will not only save energy, it will also help avoid scalding.
Use lightemitting diode or "LED" holiday light strings to reduce the cost of decorating the home for the winter holidays.
1. If I am buying or selling real estate, at what point do I need to hire a lawyer?
For most real estate transactions, the Buyer and Seller will use a real estate broker. To sell your home, the real estate broker will want a listing agreement signed. You should consult a real estate lawyer before signing the listing agreement. It is a binding contract when signed by both parties. In the same way, the Buyer should understand the Buyer/ Broker’s form before signing. This could potentially obligate the Buyer to pay all or some portion of the real estate commission.
2. What does the multiple listing service do?
In an area where real estate brokers are members of a multiple listing service (MLS), brokers group their exclusive listings in order to give maximum exposure to any potential Buyers. When a sale occurs, the fee arrangements to the brokers are normally predetermined as contained in the multiple listing agreements.
3. When does a real estate broker earn his or her commission and is it a fixed amount?
The standard real estate broker’s commission is six percent of the purchase price, however, the broker’s commission is open to negotiation. The broker is normally entitled to a real estate commission when he or she has procured a ready, willing, and able Buyer. The broker’s commission is paid out of the Seller’s proceeds at closing.
A “binder” or offer to purchase is a written agreement entered into between the Buyer and the Seller. A binder deposit, normally one percent of the purchase price, is tendered from the Buyer to the Seller. The offer to purchase is designed to hold the property from sale pending the preparation by Seller’s counsel of a formal contract. In some areas in Connecticut, the Buyer proceeds immediately to an offer/contract provided by a real estate broker. It is definitely advisable to have this document reviewed by an attorney if there is not going to be a formal contract.
5. At what point is a binding formal contract of sale entered into by the Buyer and the Seller?
After the offer to purchase or binder is entered into, the next step is for the Seller’s attorney to draft a formal contract of sale. This contract is sent to the Buyer’s attorney. It describes the property and contains the necessary terms of sale in order to provide a valid and enforceable contract. Moreover, the Buyer is normally required to pay further deposit monies at the signing of the contract. A total of ten percent of the purchase price is the standard down payment.
6. What does the Seller of the real estate have to disclose to the Buyer about the condition of the premises?
There have been recent developments designed to achieve full disclosure by the Seller. The Seller must provide the Buyer with a signed property disclosure report prior to entering into the contract. However, the Buyer is still responsible to uncover any and all problems regarding the condition of the property. The Buyer should arrange for a professional building inspection, and review the results of this inspection prior to entering into the contract. Examples of some common inspections are: pest, radon, septic, well water, lead, and building.
7. Is a title search necessary and who pays for it?
After the contracts of sale are entered into, the Buyer’s attorney conducts a title search. This is prudent because the title search discloses the previous owners of record and other interests, including mortgages, judgment liens, and other encumbrances. In the event title problems are discovered, they must be resolved in order to
ensure good and marketable title. The Buyer pays for the title search as a part of the services rendered by his or her attorney.
8. Do I need to purchase title insurance, and if so, what does it cover?
Title insurance is required by lenders to be purchased by the Buyer at closing. Title insurance provides two types of coverage. First, it will pay to legally defend the insured’s title, and, secondly, it will pay the cost for the removal of a defect in title on behalf of the insured to the extent of the policy limits. Title insurance protects the Buyer from hidden defects not revealed in a title search, such as lost or forged deeds, deeds executed by incompetents, mis indexed deeds, or improperly probated wills.
9. What is a mortgage commitment letter?
The mortgage commitment letter is the most important document a borrower receives from the lender prior to closing. It informs the borrower of the loan application approval and the commitment of the funds for the loan. There are often conditions outlined in the letter that require fulfillment prior to or at the closing of sale. The commitment should also set forth the basic terms of the loan, as well as the fees associated with the lender and charges to the borrower.
The final stage of the real estate transaction is the closing. This is the stage at which the parties sign all documents in connection with the sale and mortgage and the balance of the purchase price is paid to the Seller. The Seller produces all documents necessary for the title transfer and delivers a deed conveying title to the Buyer.
We have built a strong reputation as an outstanding mortgage brokerage firm, serving the lending needs of real estate professionals, individual homebuyers and current homeowners throughout the state.
We're a full service mortgage broker with an experienced staff offering expertise in every area of mortgage lending. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan with the best rates, terms and costs to meet your unique needs. But that's just the beginning of our service. Throughout the lending process, we provide regular loan updates and progress reports so you always know the status of your loan.
We provide local customized service and have access to some of the lowest rates and fees in the marketplace while providing transparency, exceptional client support, and a streamlined closing process.
Thank you for visiting New England Residential Finance, LLC. We look forward to putting our mortgage service to work for you!
Contact us: 203-441-4716
Apply NOW for a Better Mortgage Experience
Michael has been in the mortgage lending business for more than 20 years, he is an experienced loan professional that is dedicated to providing honest and straightforward guidance to those looking to purchase, renovate or refinance their home. Michael has worked in many areas of the mortgage business and has an expansive knowledge of the loan process from application to closing.
Michael is the owner of New England Residential Finance, LLC located in Wolcott, CT where he manages the daily operations of the business, assists clients through the entire loan process as well as lead a successful sales team of mortgage originators.
With more than 20 years in the mortgage industry, Nick has a extensive knowledge of all aspects of the mortgage business. Before joining New England Residential Finance, LLC (NERF, LLC) in 2015 as a Mortgage Processor, I was a Mortgage Loan Originator for Webster Bank for 13 years. I then became a licensed Senior Mortgage Loan Officer for NERF, LLC in November 2016. I am knowledgeable in both conventional and government lending and I am committed to helping all clients achieve the dream of home ownership or refinancing their current home.
When I am not working which isn't often, I am a proud father of 2 boys. I spend my free time I have raising my two sons. I have a 20 year old son who is currently in college at Johnson & Wales in Rhode Island studying to become an anesthesiologist. My youngest son, who is 10 years old is in 5th grade. He keeps me busy with doing anything outside sports related and when not outside we are usually off to arcades, trampoline parks or playing video games.
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%I
• 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 government issued 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.
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.
Next Meeting: Oct. 12th
Time: 8:00 AM
Where: Norwich Inn & Spa
607 W. Thames St Norwich, CT 06360
Contact: 860 892 2595
About: Discussions & Insights.
• Candidates Meet & Greet
• Congressional Update with Joe Courtney
• CT Realtors Issues Advocacy with Cindy Butts
• Home Builders Legislative Issues with Jim Perras Register here!
Next Meeting: Oct. 17th
Time: 5:45 PM 9:00 PM
Where: Sheraton Rocky Hill
100 Capital Blvd.
Rocky Hill, CT 06067
Contact: 860 265 4414
About: How To Go From A Stressed Out Investor
Always Worried About Where The Next Deal Is Coming From To A Lead Generating Machine.
Here’s what you’re going to learn:
• The two most popular lead generating tactics that don’t work anymore
• How to get crystal clear on a business model that supports your dream life
• How to predictably generate leads & more!
Register here!
Next Meeting: Oct.
Time: 5:45 PM 9:00
Where: Keller Williams
2777 Summer St, Suite Stamford, CT 06905
Contact: 860 265 4414
About: How To Go Stressed Out Investor
Always Worried About Where The Next Deal Coming From To A Generating Machine.
Here’s what you’re learn:
• The two most popular lead generating that don’t work anymore
• How to get crystal on a business model supports your dream
• How to predictably generate leads & Register here!
Oct. 18th 9:00 PM
Williams Suite 700 06905 4414
From A Investor About Deal Is Lead Machine. going to popular tactics anymore crystal clear model that dream life predictably & more!
Next Meeting: Oct. 20th
Time: 5:30 PM
Where: The Back Nine Tavern
245 Hartford Rd, New Britain, CT 06053
Contact: 800 369 6153
About: Join fellow real estate professionals and Mayor Erin Stewart for networking and an important discussion on property tax revaluation and tax changes.
Pizza included.
One drink ticket (Beer or Wine) included.
Register here!
Next Meeting: Oct. 26th
Time: 1:00 PM
Where: Webinar
Contact: 800 369 6153
About: An Overview of Fair Housing
• What is Fair Housing?
• Federal vs. State Laws
• What is a Protected Category?
• Live Q&A
Presentation by John Fisher, Fair Housing Coordinator, Author and 50 Year Landlord
FREE for CTPOA members. $10 for public. Register here!
Next Meeting: Oct 26th
Time: 5:00 PM 7:30 PM
Where: GHAR Main Floor
430 New Park Ave, Hartford, CT 06106
Contact: 860 561 1800
About: Join the Government Affairs Committee of GHAR as we taste some bourbon and chat with 2022 legislative candidates from around Greater Hartford. Let's listen and share our thoughts on the future of homeownership and property rights. Only $10 fee includes catered food and varied beverages. All are welcome!
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.