CT Real Estate Today January Edition

Are You Ready for the 2019 CT Legislative Session?

CT Representative gives her tips for success at the capitol.

To Evict Or Not To Evict?

The $5,000 Question.

Full story on filing your Real Property Tax Appeal.

NEW STATEWIDE EVENTS

CALENDAR

January 2019

Published by:

FEATURED ARTICLES After Two Decades, CTPOA Decides It’s Time To Pass The Torch On Government Affairs: CTPOA steps down, Property Owner Defense League steps up.

Working With A Buyer’s Agent: This months Realtor Report focuses on the importance of scouting the right Realtor for your property purchase.

Tax Reform Highlights and What to Expect for the Upcoming Tax Season: CPA breaks down the changes since the implementation of The Tax Cuts and Jobs Act. News & Views From the Capitol: Representative D’Amato shares tips on how to navigate the capitol during the legislative session.

Fair Housing Law… Is It Time To Take A Look At Companion Pets?: CTPOA President raises questions surrounding the legitimacy of emotional support animals.

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Upcoming Seminars, Classes, and Networking Events

16 Landlord Spotlight Catch up with Dave Haberfield as he answers questions and shares his experiences about being a CT Landlord and business owner.

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To Evict or Not To Evict ?

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Eviction Attorney, Venoal Fountian, gives us his best advice on dealing with the CT eviction process.

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Publisher’s Message “Helping Property Owners Since 1994” - Bob De Cosmo, President

Bob De Cosmo began purchasing and managing rental real estate in 1982 and is a strong advocate for private property ownership right's in Connecticut.

Published by CTPOA Our goals; Educate our members on “Best Practices” for maximum efficiency Increase profitability by lowering operating expenses via vendor discounts Provide access to “Core Services” needed to better manage and maintain properties

Our Team: Emily Pacileo Carmine DeCosmo Justin Meadows

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elcome to the New Year and I sincerely hope everyone has a healthy, happy and prosperous 2019. While this time of year is filled with great enthusiasm and a regenerated focus on business and achieving goals it also brings in a new session at the CT General Assembly.

proposed bill on any topic they choose while in the short session, only bills that a committee wants to take up as subject matter is proposed.

This year there could be as many as four thousand proposals and the Legislative Commissioners Office quickly reviews each proposed bill and gives it a number Each Legislature inevita- and refers it to a committee. The committee bly brings about a will meet a couple of change in direction for times to review all the our state’s policy in proposals referred to many areas and real esthem and decides if that tate and rental housing committee wants to are typically impacted.

The Legislative process “raise” a Proposed Bill and bring that Bill forworks a bit differently depending if it’s an odd ward for more action; if or even numbered year. they choose not to, that The odd numbered years Proposed Bill is dead. are called “long sessions” Next, the committee deand the even years are cides which Raised Bills known as “short sesthey want to hold a pubsions’. The long session lic hearing on and if a runs 5 months, and this Raised Bill is not given a year is a long session and public hearing, it’s dead. the short session is next Bills that had public year and it’s also the year hearings are then disthat the Legislators run cussed back in Commitfor re-election. tee meetings and if the members like it, they will In a long session, any vote Joint Favorable. legislator can submit a

Any bill that had a public hearing but is not voted Joint Favorable is dead.

Soon our list of four thousand bills dwindles down to perhaps 500 so these Bills all now “have legs” and are considered alive and kicking. All of these processes happen in the first half of the session and the action is fast and furious. After the committee process is done the Bills must navigate through more debates and committee discussions and votes. It’s pretty easy for a Bill to die and pretty hard for a Bill to become law.

There are several proposals that we have been hearing about that would impact the way property owners and Realtors operate their businesses, this is not the year to take anything for granted so please try to keep yourself informed on current government affairs.

Learn more about how a proposal becomes law

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After Two Decades…

CTPOA Decides It’s Time To Pass The Torch On Government Affairs By: Bob DeCosmo, CTPOA President

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s an organization that has advocated for landlord and property owner rights whether on a local, state or philosophical level we finally wound up at the crossroads forcing us to decide about our future identity.

The decision was to choose between government affairs and the legislative issues or help cities with property development and neighborhood revitalization efforts while building networking and marketing opportunities between businesses and property owners and bring on new revenue sources including a licensed consumer collection agency and a vendor marketing and referral program.

Last year Connecticut was given the dubious distinction of being named the third worse State in the Country for population growth. In fact Connecticut actually lost population which should sound alarm bells in the halls of our State Capitol, instead it brings a doubling down on extending the policy that most hard working tax-payers say is ruining our cities and putting tremendous financial burdens on our State’s budget.

CTPOA is happy to hand off its political reputation and resources and fully supports the Property Owner Defense League in their efforts to help protect the real estate community from legislation that will lower property values and deplete cash flow from businesses.

Realizing that it will be near impossible to do both business development and operate a coordinated grass roots government affairs movement we choose to let someone with a sinThe decision wasn’t too difficult be- gular focus and more energy take on cause politics is becoming more like the government affairs. a gladiator sport and Connecticut CTPOA is happy to hand off its popolicymakers continue to be hostile litical reputation and resources and towards businesses and taxpayers. As fully supports the Property Owner a result, we have experienced fewer Defense League in their efforts to and fewer landlords wanting to get help protect the real estate commuinvolved and political discussions nity from legislation that will lower today often end up in arguments or property values and deplete cash fistfights….it’s truly disheartening! flow from businesses. The Defense

League will never hire a lobbyist that works for more than one client, so there is never a potential for a conflict of interest. All legislative efforts will be in house so only real estate business and policy issues will be discussed between legislators and the Defense League volunteers and staff.

There is plenty to watch this year, like a potential hidden tax on landlords by virtue of allowing fees to be charged in the Uniform Property Maintenance Code and limiting a private landlord’s right to explore a rental applicant’s criminal past. Another issue will be Lead Paint after HUD lowered its action level to 5 micrograms from 20. Also will CT continue to allow owners to work on their own units for lead abatement and will it continue to allow encapsulation or require component replacement?

We encourage everyone to keep an eye on policy issues as they develop but remember while you are busy working or dealing with your properties, groups that seek to limit your rights and financial success are hard at work at the State Capital with paid staff and lobbyists trying to convince elected officials that Realtors and Landlords are wealthy people and can pay more and must do more to be responsible for the tenant populations life outcomes….you should truly consider supporting the Property Owner Defense League and we understand it will be fully operational

by January 15.

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Working With a Buyer’s Agent

worked with buyers, specifically first time home buyers, which is why I advocate so strongly for employing the help of a buyer’s agent. First time homebuyers are excited and that energy often drives my love for real estate. .

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On the flip side, they are more often than not, uninformed or unsure when buying their first home. This is common. An experienced home buyers agents should know this, address it and ease the process by using foresight and making recommendations so buyers can become confident consumers.

By: Suzanne Summa, Broker/ Owner J.Summa Realty LLC. In a real estate transaction there are multiple actors, a buyer, a seller, the seller’s agent and a buyer’s agent. As the name suggests, a buyer’s agent is the realtor or broker hired to represent the interests of a buyer in a real estate transaction. Whether you are buying a home for the first time or not, you should be aware of the advantages of working with a buyer’s agent.

agent does not make it clear that they are reachable by phone, text or email with a demonstrated quick response time you may have a long home buying journey ahead of you

Maybe too obvious but can’t hurt, are you a home buyer’s agent? Or, how often do you work with buyers? This may seem like a ridiculous question, however, there are agents whose whole career is focused on listing homes. It is good to know if the agent you are scouting to work with is in tune with buyer’s needs, as listings are a whole other specialty.

At the end of the day, you may buy a home from an agent because your uncle’s dog’s groomer’s cousin used them and said you should too, but is that really the best option for you? If you are looking to buy a home, which can be complex and overwhelming you should at least hire someone who will have you covered when you’re ready to make an offer.

Home Buyer Agent Q&A:

The home buying process is complicat- 1. How well do you know ed, forces buyers to evaluate their fithe area we are interestnances for such a purchase and can ed? This may be easier to evoke emotions that lead to sensitive answer in smaller States conversations between buyer and agent. where agents often serve Since a buyer’s agent is legally obligated many different areas in close to operate in your best interest, inforproximity, however, if you mation you share with your agent will do not know an area be only be used to help you. You should be honest. able to be transparent and clear with your agent about your home buying 2. When are you available? hopes and concerns without worrying Unlike listing agents, buyers about how that may affect the purchasagents need to be available ing process. at varying times based on buyer’s needs and if an Over the last decade I have primarily

With over 15 years experience in the real estate industry, I founded Summa Realty llc. in 2007. I am dedicated to providing personalized service based on individual client needs. I love assisting my clients through their home buying or selling journey. Call me today and let me help you get started!

Suzanne Summa

Cell: 203-437-1667 6

Waterbury. The good “old” days when we got together to discuss the multi-tiered factors affecting our industry, the City, the State, the government, and the Politics of all the aforementioned.

From the

Desk of the

Association

After Meetings with local legislators (like Senators Joan Hartley and Joe Markley and Representatives Larry Butler, Jeff Berger, and Tony D’Amelio…to name just a few) to identify problems as vague as “What would it take to make the City of Waterbury sellable and rentable again?” A lot of “spaghetti ideas” was thrown against the proverbial wall after these meetings…and gradually,

Executive

Positive Outlook on the Year Ahead By: Sharon Hallock Executive Vice President

their all-time high, Buyers were leaving the state, sellers were “stuck” and underwater, businesses were filing bankruptcy, and too many homeowners were losing their homes to foreclosure.

Taking a few moments to reminisce, it is mind-boggling to think how we managed to cobble together just enough steam to build just the right collaborations and working relationships with just the right elected officials, community leaders, business partners, like-minded community groups and advocates… It is really quite AMAZING TO BE WHERE WE ARE NOW!!!

The new and improved TenantTracks was launched and is continuing its success by expanding into the Massachusetts market and beyond!!! The new and improved CT Property Owners Alliance is well on its way to becoming the single most effective rental market tool for Landlords and REALTORS alike. The Front Porch Initiative has very sucwith a lot of hard work, dedication, cessfully completed its first trek and long volunteer hours, the persever- is on its way to bigger and better sucance of a few grew into many! Buck- cess. ets started filling up.

The Neighborhood Housing Ser-

I am proud to have worked alongside of Bob during this time, reWaterbury Board of Realtors searching and finding ways to address the many issues that were sliding down this wall. Rentals were failLet me start with a congratulations to Bob DeCosmo for his many suc- ing, Housing and Neighborhoods cesses over the past 10 years. Wow, had disintegrated, Landlords and Init has been that long ago since I re- vestors were leaving the state, Tencall meetings in our Board’s Confer- ants were getting more destructive, ence Room in our “old” building at REALTORS were going through the 161 North Main Street, downtown, Great Recession, Government was on the verge of collapse, taxes at

vices has improved its communication and outreach messaging, making it a much stronger advocate for the residents who live in any one of their distinctive neighborhoods. The GWBR’s new restructured organization has automated its services to provide a much wider variety of tools and programs relevant to its members success…blazing new pathways into the next millenia.

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The economy has taken a big step toward “resetting” itself into a productive business environment once again. There is money to be made, but not without facing the reality of change that is upon all of us. CT is still in trouble, but in large part, public awareness has been raised by the Special Commission on Fiscal Stability and Economic Growth cochaired by our very own James Smith, Chairman and former CEO of Webster Bank. It is now up to the rest of CT leaders, going forward from all walks of life to step up and do their share of the heavy lifting, and the residents to hold them all accountable.

“Change is inevitable. No one can or will stop it. If you ignore it, it will consume you. If you try to dance around it, you will stumble and fall.

If you cannot embrace it, now is the time to get out.” One has to develop the skills associated with ushering in change, and it begins with grabbing ahold of it and steering YOUR COURSE to be part of it. Success will always come to those who can recognize and implement their own strategy to embrace the changes they are facing.

my hard earned wisdom in your new newsletter. I look forward to helping you disperse the fruits of all those “buckets” we filled together! I also just want to give a shout out to my good friend, the now Congresswoman Jahana Hayes of the 5th District of CT. She was definitely one of the brightest gems to have emerged from the great City of Waterbury.

Congratulations Jahana! We are looking forward to working with you on housing issues.

Thank you Bob, The real estate industry is everchanging and the same goes for the for this REALTOR Association, as we know opportunity to it. As an agent of change for over 4 shed decades in this arena, I will say this: some of

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Q&A With A

Landlord

When did you buy your first rental property?

that requires as much work as any other job. It has rules that make less sense than your job. I don't I bought my first rental property in even have to know what you do to 2006 at the peak of the market. It make that statement. It requires a was a single family house, and I had combination of book smarts, street no idea how to do the math, but they smarts, people skills, and a thick were giving away mortgages so I skin that no other job I know of signed up. I lost a fortune on it. requires.

What city was it in?

Waterbury, I bought it because I knew the owners and thought I could get a good deal.

Do you own property in more than one city?

If you had to write a help-wanted ad seeking someone to replace you, what would that ad say?

To be qualified you must be skilled at being a full time adult babysitter who has prior experience with real I do, I currently own real estate in estate, property management, conBristol, Terryville, Meriden, Waterbury, Naugatuck, Manchester, Wind- struction, QuickBooks, negotiation, human resources, government sor, East Windsor, Hartford, Middletown, Southington, and Farming- bureaucracy, banking, legal matters, philosophy, psychiatry, and crimiton. nal matters. Must also be willing to work long hours, able identify a Do you own property in drug addict from 10 feet away, able other states? to tell when a contractor has no I have one rental property way out in idea what they're doing and is upstate NY that had some special learning on YouTube, have thick circumstances, and I did some land skin, not lose sleep over being banking in Arizona, but there’s no robbed repeatedly, or being called a house on that land. bad person when a single mother, veteran, with cancer, who is a vicHow would you describe tim of domestic violence beats you for $8,000 and tells everyone what your job as a landlord a heartless slumlord you are. Comcompared to other jobs? pensation and job satisfaction has When I first started looking into the ability to be higher than averrental property, I was attracted to age, the sky is the limit and there residual income which keeps coming are unusual perks and rewards that even if you're not working for it. I you've never even thought of. was wrong. There’s nothing residual You'll never be bored, and every about being a landlord. It is a job day is a new adventure.

David Haberfeld is an active real estate investor and landlord that manages over 100 units and also had over 30 closings in 2018. David is very active on Facebook and can be found in numerous posts in various groups that focus on real estate.

He owns and operates a company called Landlords Solutions in Bristol.

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What’s the hardest thing about owning rental property?

that I hope they get hit by a bus, but only the really bad ones. I am small enough that I can have a relationship with my tenants. If I was larger, I The hardest part is managing people, may not have the luxury of knowing them personally, but for now. I know from your tenants to your contracmost of them personally. I also have tors. People don't always do what an office staff that deals with them you want them to do, or what you face to face regularly and keeps the think they'll do. People have very lines of communication open and different priorities than you think they should, and there are many bad our relationships as positive as possible. people in the world. As a landlord Every business is a relationship busiyou get to see it more often than ness. many other careers.

nancing, to evictions, and have them available to ask questions to. This is worth more than can be calculated with money.

What is the easiest thing What is your worst “Tenant from Hell” story? about owning rental If I was to pick one, I'd say my tenproperty?

2. I would have learned how to analyze a deal and not jumped into the market in 2006.

The easiest part about owning a rental property is the great tenants, the 75% or better of tenants that rent a unit, pay their rent, only call when something is really wrong, and who are a pleasure to deal with.

75% of them fall into this category.

20% have problems or issues that make them require more work and cause more headaches, but are still good people, and still worth working with, and 5% are horrible human beings.

3. I would have pushed harder and bought more during the dark times of 2009-2012 when property was really cheap, but everyone else told me to stop buying because the market was bad. (I bought, but could have bought more)

ant from hell would be a tenant I’ll call Mr. Jones who was a tenant that I had to evict because I just evicted a tenant named Al was a hot head and we had a falling out so I evicted him. When I evicted Al, he handed the keys to Mr. Jones who was a felon rapist and drug addict before the Marshal moved Al out. Al texted me and told me to enjoy my new tenant.

I had to evict again. However, because I never took control of the apartment, I evicted Al again too, and put 2 evictions on his record.

That made him furious. We had sevWhat was the biggest eral unpleasant interactions during mistake you made as a the process, in court, and outside of court. In the end, I won and received landlord?

The biggest mistake I made as a land- possession of my apartment, but of course I lost plenty of money in the lord was not seeking out a mentor when I started. It didn't occur to me process. Those two people were probably the most difficult to deal to seek out someone else who was successful doing what I wanted to be with that I've come across so far, but doing, and ask them if they'd be will- they're far from alone. I have quite a few of these stories to tell! ing to teach me.

That mistake in my mid 20s cost me What advice would you more than I could ever calculate.

Describe your relationship with your tenants.

give to others before they buy their 1st property?

Find a mentor, have someone walk I have about 50% of my tenants as you through the property, from purFacebook friends. Most of us have a chase, to analyzing the deal, to tenant good relationship. There are others screening, to fair housing law, to fi-

What would you do differently now if you had the ability to change the past?

There are a few things; 1. I would have found a mentor when I started.

4. I would have gotten involved with local civic and social groups earlier; I have found the connections made by helping your community and networking groups to be worth every minute and every dollar.

What’s your outlook for the future of landlording in Connecticut?

CT is last for just about everything, however this is my home and where i'll stay.

There are some serious problems with the leadership in CT that drives up costs for landlords, which drives up rents for tenants.

Our Legislative leaders don't understand that relationship, or homelessness or how rentals work, so they keep trying to make laws that make it 10

harder for us to screen (purge court records after 3 years on the State website) or keep out felons (ban the box), or keep out low income (security deposit guarantee), or keep out pets (fake service and emotional support animals covered by CHRO), what they should be doing is making evictions easier, and making screening easier.

with no end in sight because rents are so high....but it's not our fault.

If a landlord in CT could evict a person in 30 days instead of 60 or 90 or 180 many of us might take a chance on that felon, or that person in recovery, or that person with bad credit, or that person who is down on their luck and just needs a landlord to give them a chance, which would reduce homelessness and create 2nd chances for many, but we can't, because too many people in those categories fail us and we are forced through very expensive evictions.

I will continue to be a landlord in CT, but the progressive agenda will continue to force rents to rise, making them unaffordable to more and more of our population. Our future is reasonable as far as a business, and demand will remain high, but plan on people thinking we're the bad guys

The staff at CTPOA wants to wish our readers, contributors and affiliates the best in the new year. Wishing you great success in the year to come.

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Why Your Business Needs a Website By: Lukasz Pawlowski Head Programmer, Tenant Tracks

present on local business listings – backlinks will give your website more “juice”, which will help you to get to the top of search results.

Increase Your Reach Do you have a loyal group of customers that visit your site consistently and frequently? I am sure you do. But what if you could increase the number of new visitors – would you do it? And further, how would you capitalize on these new visitors?

In our last article, I guided you through the most important elements of a website. However, we haven’t talked about, possibly, an even more important point: Do I need a website for my business? While there are multiple reasons behind different types of websites, we will focus on one case: Why every business simply needs a working website.

A website provides you with a whole range of tools, that allow you not only to reach new people, but also to learn more about your clients through statistical information which is gathered when they visit your site. Statistics can provide you information, that customers would never reveal to you directly – and it allows you to focus on the type of people you want to reach to increase your chances of conversion. For example, if you learned that male clients in their late 50s living Be Found! within a 20 mile radius of Berlin are the main consumers of your product, wouldn’t you gear your marketing While there are efforts towards this type of client? It is vital to undermany ways you can stand your audience, who is buying your product or reach your potential customers; such as phone, email, or local newspapers – using your services as it will save you time and money the internet allows you to reach almost anyone around in the long run when creating marketing materials. the world. The easiest way for your potential customers poorly put together website. By crafting a professional to find you is to search for a certain kind of service in a website with proper information and easy to use funcspecific area. tionality you have just increased the odds of converting You must be sure, that your business is listed in the proper area and in the proper category to be easily found. It also must be described to Google in a way, that it will recognize your position and specialty properly. It’s also a good thing to ensure , that you are

customers and event more importantly you have presented yourself as a quality company that operates with the customer in mind. I think, that choice is obvious here, take your time create a great website and you reap the benefits.

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Show Off Your Professionalism Websites can be good or bad. You need to consider what a customer’s impression is when they visit your website. Additionally the quality of your website is in a way a representation of the quality of service or product you provide. Creating a website with incomplete information, missing links and non user-friendly design you are telling your customer “Here’s a website but I don’t really care.” Thus, a potential customer may not use your service or buy your product because of a poorly put to-

gether website. By crafting a professional website with proper information and easy to use functionality you have just increased the odds of converting customers and event more importantly you have presented yourself as a quality company that operates with the customer in mind. I think, that choice is obvious here, take your time create a great website and you reap the benefits.

Building Brand Recognition Websites and social media allows you to become recognizable as a brand. And I don’t mean spamming here – I mean, that your logo should be well known and users should be able to find you in different places, like Face-

book, Twitter, YouTube, etc. – not only Google. This way you also gain more credibility as a company.

It allows you to do one more thing: to become consistent as a business. By sending the same type of message via multiple platforms you are telling your users that you are professional. This message can be different based on your business model and marketing strategy.

You can see that Giant Companies are doing this. If cars could talk, then Aston Martin would say: “Our cars are not the cheapest, but we are luxury cars” – while on the other hand Ford would say: “Maybe I am not a luxury

car, but I get the job done!”

I hope that by reading this article I made it easier to understand why having a website for your business is important, and extremely vital. You can read more about websites and Internet technology next month on TechTalk – stay tuned!

If you would like to know more about creating a professional website, please feel free to contact Lukasz at: info@sailingbyte.com

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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.

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Fairfield County Real Estate Investor MeetUp 17

EVENTS ď Ľ METTINGS ď Ľ SOCIAL

Greater Bridgeport Property Owners Association Next Meeting : January 16, 2019 Time: 6:00PM Where: 61 Hurd Ave, Bridgeport, CT 06604 President: Richard Deparle Contact # 203-333-4103

Greater New Britain Property Owners Alliance

Greater New Haven Property Owners Association

Next Meeting : January 24, 2019

Next Meeting : January 28, 2019

Time: 5:00pm

Time: 6:30pm

Where: Elks Club 30

Where: City Hall

Washington St. New Britain

165 Church ST New Haven

President: Frank Maccarone

President: Doug Losty

Contact # 860-827-1100

About Us: The Greater New Haven The Greater Bridgeport Prop- About Us: Property Owners AssociaThe Greater New Britain erty Owners Association (GBPOA) is a coalition of reProperty Owners Alliance is tion is an association of sponsible owners who have comprised of Realtors, land- landlords, real estate invesunited to create fair and effec- lords, investors and proper- tors and property managers tive housing laws and promote ty managers in the greater doing business or interested safe, clean, affordable housin doing business within New Britain. ing.

Our monthly meetings usu- New Haven County, CT. We distribute information inally consist of a guest speak- Our monthly meetings usutended to educate and inform er talking about topics rele- ally consist of a guest speakproperty owners about evicvant to our membership. tions, lead issues, laws and er talking about topics releAbout Us:

legislation, municipal policies, leases, rental paperwork, loans, grants and tax issues.

vant to our membership.

Next Speaker: Bob De Cosmo

The GBPOA creates a forum for property owners to network with each other. The GBPOA membership gives this association a voice with businesses, contractors, the City of Bridgeport and the surrounding communities and the Connecticut State Legislature.

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Fairfield County Real Estate Investor Meet-Up

Central CT REI Meetup/ SoCT REIA

Next Meeting: January 30, 2019

Next Meeting: January 10, 2019

Topic: Networking

Topic: Maximize Your Credit Ability Build Business Credit for Bigger Profits

Time: 7:00PM

Greater Enfield Landlords Association Next Meeting: February 2, 2019 Topic: Networking Time: 7:00

Where: Grace O’Malley’s 1494 Post Road, Fairfield CT

Cost $25 per

Where: Enfield Town Hall 820 Enfield ST

Manager: Travis Prezioai

Time: 7:00PM

President: Joe Mollica

About Us: Real Estate Investors of all types get together to share best practices, build relationships, develop mutual resources, and to stay active in the general Connecticut Real Estate Investment community.

There are no formal presentations, though everyone has a chance to introduce themselves to the rest of the group! From fix n' flippers to largescale property owners, part-time investors, and those just getting started.

Where: Norwalk City Hall Community Room 25 East Ave Norwalk CT

Contact # 860-916-1259

About Us: Our members still are primarily small property owners while others of us have expanded into apartment comManager: Deirdre Virvo plexes and commercial establishments.

About Us: Central CT REI meetup is part of SoCT We have banded together for the common good, to maintain and preREIA for Real Estate Investors, new serve affordable housing, and to proand seasoned, looking to meet likemote safe, clean, and decent housing minded individuals.

Education, Networking & Empower- while striving to see that our housing laws also remain fair and equitable to ment is the goal of SoCT REIA. We landlord and tenant alike. welcome investors of all levels and Our organization disseminates inforbackgrounds as well as contractors, real estate attorneys, inspectors, land- mation that helps to educate landlords. We regularly host guest speaklords, private money lenders, insurance brokers, and anyone associated ers who present timely information on with the Real Estate investing indus- landlord-related topics. We also keep our membership informed through try! the distribution of occasional notices, emails or information packets.

Join Us .

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EVENTS ď Ľ METTINGS ď Ľ SOCIAL

Norwich Property Owners Association Next Meeting: February 2, 2019 Topic: Networking Time: 7:00

CT REIA Next Meeting: January 21, 2019 Topic: Real Estate Investing Time: 6:00pm

Where: Dime Savings Bank 820 Enfield ST

Where: Sheraton Four Points 275 Research PKWY, Meriden, CT

President: Sophie Norblick

President: Sophie Norblick

Contact # 860-889-2058

Contact # 860-889-2058

About Us: The Norwich Property Owners Association (N.P.O.A.) is a coalition of responsible Norwich Property Owners who have united to create fair and effective housing laws and promote safe, clean, affordable housing.

NPOA distributes information intended to educate and inform property owners about evictions, lead issues, laws and legislation, municipal policies, leases, rental paperwork, loans, grants and tax issues. NPOA creates a forum for Property Owners to network with each other. This encourages an honest communication and exchange of ideas and information between responsible property owners helping to ensure more efficient and profitable property management.

About Us: The Norwich Property Owners Association (N.P.O.A.) is a coalition of responsible Norwich Property Owners who have united to create fair and effective housing laws and promote safe, clean, affordable housing.

NPOA distributes information intended to educate and inform property owners about evictions, lead issues, laws and legislation, municipal policies, leases, rental paperwork, loans, grants and tax issues. NPOA creates a forum for Property Owners to network with each other. This encourages an honest communication and exchange of ideas and information between responsible property owners helping to ensure more efficient and profitable property management.

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Tax Reform Highlights and What to Expect for the Upcoming Tax Season By: Safietou D. Russell, CPA, EA, MST, SDR Consulting

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ax reform has changed the way most taxpayers need to think about and plan for their taxes.

The Tax Cuts and Jobs Act was signed by President Trump on December 22, 2017 and it is no longer business as usual.

ers, traveling salespeople and others with large employee business expenses should seek out accountable expense reimbursement plans with their employers.

For taxpayers in business, tax reform offers 100% expensing of purchased tangible business assets other than structures. At the same time, it also offers a new 20% For most taxpayers, the most significant change is the increase in their standard deduction, which on the sur- flow-through business deduction. The combination of these two deductions must be carefully considered beface seems like a big benefit. But don’t overlook the fact cause expensing rather than depreciating the cost of that the same tax reform that nearly doubled the standequipment, machinery, etc., will reduce the business’s ard deduction took away the personal exemption as a profit, which will in turn reduce the flow-through dededuction. So, for example, under old law, a married duction. On the flip side, the new 20% deduction is limcouple’s standard deduction would have been $13,000, ited for certain higher-income individuals and reducing income by expensing capital purchases may actually help and their two personal exemptions would have been one to qualify for the deduction. Also, a reduced 21$8,300 (2 x $4,150), for a total deduction of $21,300.

Under the new law, they will be able to deduct $24,000, percent corporate tax rate is permanent beginning in the new standard deduction for 2018. So, their total in- 2018. crease over what they would have gotten under prior law is only $2,700.

For individuals with children under age 17, the child tax credit for 2018 was increased to $2,000 (with $1,400 being refundable) from the prior $1,000, in many cases making up for the loss in the exemption deduction.

Note that a credit is a dollar-for-dollar reduction of the tax, while a deduction reduces the income that is taxable.

Another huge issue is the loss of unreimbursed employee business expenses. This means that long-haul truck-

Jeremy Grecco Owner/Inspector

203-725-5150 GrecoInspections@aol.com GrecoHomeInspections.com 22

Additional Issues of Importance 

Business entertainment expenses are no longer deductible. However, business meals still are.



Up to $10,000 of Qualified Tuition Plan (Sec. 529) funds can be used for elementary and high school expenses, if permitted by the plan. However, your local state may not agree with this change. (i.e.: NY)

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Taxpayers who convert their traditional IRA to a Roth IRA can no longer change their minds and undo the conversion.

Casualty losses, other than those incurred in a federally declared

disaster area, are no longer deductible, so you should consider whether you have adequate insurance.



Moving expenses are no longer tax deductible (except for members of the armed forces), and employer reimbursement for moving costs is now taxable income. If an employer requires an employee to relocate, consider having the employer provide a tax gross-up reimbursement.

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Taxpayers basing their ability to purchase a home on the tax deduction they will derive from the interest they’ll be paying need to be aware that for homes pur-

Meet Safietou I spent 16 years in the Public Accounting industry. Then, in 2014, I

chased after 2017, the home mortgage interest deduction is limited to the interest paid on the first $750,000 ($375,000) of home acquisition debt.



Taxpayers who have tapped their home’s equity in the past should be aware that they can no longer deduct home equity debt interest, even if the debt was acquired before 2018 and is $100,000 or less.

 For taxpayers residing in a state that has a state income tax, some or all of the federal tax reform changes may not apply for state filing purposes, or they may apply only if the state legislature

Check out these quick videos for more info on Tax Reform:

Business changes: http://bit.ly/2018Bizlaw Individual changes: http://bit.ly/2018Indiv

started SDR Consulting in order to spend more quality time with my family. I was able to utilize my years of experience in Public Accounting to serve startups, small business owners, and the real estate industry.

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full purpose of the eviction laws, also known as summary process, in Connecticut.

In Connecticut, eviction laws are designed as a remedy for a landlord dealing with a noncompliant tenant.

The goal may not always involve removing the tenant from the leased premises. In other words, landlords are encouraged to start an eviction action as soon as a tenant has violated the lease. The most common violation is nonpayment of rent.

To Evict Or Not To Evict?

To Evict Or Not To Evict?

Evictions in Connecticut are not just for kicking the tenants out….

By: Attorney Venoal M. Fountain, Landlord Attorney - Hirsch, Levy & Fountain, LLC

Connecticut property owners continue to struggle with the term “eviction.” In fact, most landlords retain an attorney for legal representation once there has been a definitive decision that “the tenant must go!” After several years of practice in the area of landlord-tenant law, it has become quite apparent that most landlords are uninformed as to the

Attorney Venoal M. Fountain Hirsch, Levy & Fountain LLC

However, additional violations may include, but are not limited to, holdover tenants (those that fail to vacate the premises at the expiration of the lease); unauthorized occupants and/ or pets; nuisance; damage to the premises; etc. In an effort to avoid a vacant property, most landlords decide to “warn” the tenants through verbal communications self-drafted email, texts or letters. Although the landlord’s efforts are noble, and may very well put the tenant(s) on notice, in most cases, said efforts are futile and provide little or no protection for the average landlord.

For example, a landlord may elect to place a delinquent tenant on a payment plan. Initially, the tenant may (in some rare cases) make good of the plan. However, under this scenario, there is no remedy to the landlord should the tenant fail to make a payment, or pay in full according to that plan. Does the landlord have the legal right to go to the premises and kick the tenant out? Change the locks? Take possession of the leased 25

Anita Visconti premises for the tenant’s failure to For the Branch Sales Manager comply with the payment plan? The purposes Company NMLS ID# 71655 answer is NO! of this article, anita.visconti@norcom-usa.com In all honesty, and with a humane the pro- www.anitavisconti.norcommortgage.com point of view, life happens to every- fessional 7 F Garage Road, Southbury, CT 06488 one. This article is not intended to tenant is cell 203.206.2852 I phone 203.206.2852 preclude landlords from entering the tenant fax 860.323.8186 into short term payment plans. There that is This is not an offer to make a loan or to make a loan on any particular terms. All loan are good people, that are good ten- familiar Equal Housing applicants must qualify under requirements and satisfy all contingencies of loan approvOpportunity al. Rates and terms subject to change without notice. ants, and there may be a legitimate with reason for delinquencies in rent pay- Connectiments. However, if the payment cut eviction law, intends to (and in varies in different areas of the state, plan fails, the only option is to begin fact will) violate the lease agreement, it generally takes 4-6 weeks to obtain the eviction process. The landlord’s and exploit the use of Connecticut a court hearing and formally execute best protection is with a court order, eviction laws during the process. a Stipulated Judgment with a tenant. also known as a Stipulated Judgment. The tenant may remain in In order to obtain a Stipulated Judg- the leased premises rent free ment, there must be an eviction or until a landlord takes legal summary process action. action.

Stipulated Judgments are a tool that work well for landlords, as well as the well-intentioned tenant. In summary, these agreements are enforceable court orders that ensure compliance. The landlord with a Stipulated Judgment eliminates the scenario mentioned above in that it provides a remedy for the landlord. At the discretion of the landlord, a tenant that defaults on a payment specified within the Stipulated Judgment may be physically removed (evicted) from the leased premises fairly quickly.

Stipulated Judgments are also useful in persuading compliance with other lease violations such as unauthorized occupants and/or pets, nuisance issues, etc.

Landlords that delay in starting the eviction process may get burned by allowing the “professional tenant” to stay in possession of the leased premises.

Continuing with the nonpayment scenario above, a landlord that delays in starting the eviction process may be seriously affected by the professional tenant. At face value, eviction laws in Connecticut are proscribed to be fair and equitable for both the landlord, as well as the tenant. However, and in practice, the landlord is greatly prejudiced. To illustrate, if a landlord obtains a judgment for possession for a tenants’ failure to appear in court (or for failure to appear at trial), the tenant has a legal right to request a “Motion To Open Judgment” within five (5) days from the judgment date. In most cases, the request by the tenant is granted by the court, or at minimum a subsequent trial/hearing date is scheduled which costs the landlord at least another two weeks in time and money.

Due to these varied times frames, landlords that make the decision to evict as soon as there is a lease violation (typically nonpayment), are most protected under Connecticut law.

This decision to evict may not involve actually removing the tenant from the leased premises. Rather, the eviction may serve as a tool for timely payments to the landlord, secured housing for the tenant, compliance with the lease agreement, etc. Landlords are encouraged to consult with an attorney that specializes in evictions in order to understand and execute the most favorable strategy once Evictions in Connecticut are a land- the lease has been violated. lord’s best tool for compliance. Additionally, it minimizes the landlord’s loss when dealing with the professional tenant. While the time frame 26

A special thank you to our participating REALTOR Boards for circulating CT Real Estate Today to their members.

We appreciate your support.

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Your Involvement Matters Tips for success in the upcoming 2019 Legislative Session

www.cga.ct.gov and search under passed, reading hundreds of pages of “Representation” at the top to bills that did not go through their find who represents you and committee, drafting how to contact them.

The legislative aide can set up an in-person meeting to discuss a topic or request a bill be submitted to help your Helpful Tips: industry. A good legislator will take the time to listen to what you have  In-person meetings have to say but be respectful the greatest impact. of their time as many juggle their job and legislative duties.  Ask for an in-district meet

If your bill passes the first round it will then face a public hearing before the applicable comhe 2019 legislative session mittee. At a public hearing will begin January 9, 2019 you will be given the opporwith a ceremony to swear tunity to provide 3 minutes in the Governor, legislaof oral testimony to state tors and other state elected officials. why you think the legislaOdd numbered years are considered tion is needed. Complete “long sessions” and will adjourn on details about the hearing June 5, 2019. A more important date process can be obtained for you to remember is January 18, from www.cga.ct.gov or 2019. This is the deadline for the from a legislative aide. submission of new bills by Connecticut legislators. But don’t wait till the When should you start? If you want to try to get a bill last minute! Bills must be carefully drafted, then reviewed by your legis- passed, then you should start now to meet the bill lator’s legal department, then redeadline. If you want to exviewed by the Legislative Commissioners’ Office and then back to the press support or disapprovlegislator to sign off on it. All of that al of a bill, then contact occurs before your bill even gets as- your legislator between January 21- early May or before signed a number. the bill is called to the floor for a vote. The closer it gets Where do you start? If you don’t to June 5th, the busier your know who your State Senator and legislator gets. He or she is State Representative is, you can go to working hard to get bills By: State Rep Cara Pavalock-D’Amato

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ing if you are short on time

 Don’t assume your legisla tor knows about an issue that affects your industry.

 Do your research! Be prepared and bring copies o what you are presenting.

 Follow up. Call the legisla tive aid to find out if the b will have a public hearing

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te.

a-

of

abill g.

amendments, preparing testimony and answering constituent emails, all while still working a full-time job.

Don’t wait till the last minute.

Research Tips: You can search bills, track bills and receive email alerts regarding a bill’s progress on www.cga.ct.gov I encourage people to email their legislator to express their support or disapproval of a bill. I read and respond

to every email.

Although hot topics such as the legalization of marijuana, tolls and increased minimum wage will make headlines, bills that will have a greater impact on you as landlords, brokers and realtors deserve your attention as well. I cannot emphasize enough the importance of reaching out to your legislators. It is never too late to get involved and make an impact.

Cara Pavalock-D’Amato currently represents the City of Bristol in the 77th District of the Connecticut House of Representatives. She became the first Republican, female elected to district in 2014.

Cara is an attorney practicing in the areas of bankruptcy, foreclosure, tax and family law. She is the ranking member of the Insurance & Real Estate Committee and serves on the Education Committee and Appropriations Committee.

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While the need for Service Animal such as seeing-eye dogs is well understood, currently there is disagreement on what constitutes an actual need for the Companion Pets/Emotional Support Animals. Here in Connecticut all three types of animals are treated the same and protected by the our Fair Housing Laws and the American with Disabilities Act. Many landlords have been saying to us that tenants are going online and buying certificates that say that their pets are now companion animals. For an extra fee, they can also buy a letter from a “medical professional” stating that you have a need for such an animal. Owners are contending that this is only a “work-around” to a no pet clause in their written leases.

Fair Housing Law… Is it time to take a look at Companion Pets?

We would like to see this year’s General Assembly engage in a real discussion about this topic in order to provide Connecticut’s real estate community answers on how to handle multiple pet requests, breed restrictions on dogs and insurance policy exclusions, excessive noise from unattended pets and what actually constitutes a pet; is it a dog, cat or a farm animal!

By: Bob DeCosmo, President CTPOA

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n April 11, 1968 President Lyndon Johnson signed into law Title VIII of the Civil Rights Act of 1968, commonly known as the Fair Housing Act. The legislation was advanced as an ambitious and progressive vision to eliminate housing discrimination and residential segregation in this country. In 2018, Fair Housing was celebrated across the county as the nation recognized the 50th year anniversary of the law’s existence.

It can be said that much has been accomplished in the past 50 years but also more lies ahead to accomplish. While there is no disputing the need for this mighty legislation and its enforcement, often times some unscrupulous people take advantage of well-intended ideas and concepts as well.

In 2019, I believe one of the most difficult issues impacting Connecticut’s real estate professionals is the claim for a “Companion Pet or Emotional Support Animal” and what actually justifies that claim.

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Appealing Real Property Tax Assessments By: Julia Singer Bansal, Associate Analyst Connecticut General Assembly

Issues

Summarize the process for appealing real property tax assessments in Connecticut. This report updates OLR Report 2009

Filing, Hearing, and Deciding Appeals Under the law, anyone aggrieved by a property tax assessor's actions can appeal those actions to the town's board of assessment appeals. The aggrieved person must do so in writing on or before February 20. The written appeal must include, among other things, the person's name, a description of the property, the reasons for the appeal, and the person's estimate of the property's value The board must hold a hearing on any appeal except those for commercial, industrial, utility, or apartment properties assessed at over $1 million. In cases where the board must hold a hearing or chooses to hold one, it generally must: 1.notify the appellant of the hearing's date, time, and place by March 1; 2.hold the hearing in March; and 3.decide the appeal by the last business day of March If the board chooses not to hold a hearing on business or apartment property assessed at over $1 million, it must notify the appellant about its decision by

March 1. Such an appellant may appeal the board's decision directly to Superior Court The timeframe for hearing appeals can be extended by the town's chief Executive officer (CEO) if the assessors and the board need more time to complete their work. The length of the extension depends on whether the town completed a revaluation. If it did, the CEO must extend the timeframe for up to two months.

Otherwise, he or she can extend the period for up to one month. In either case, the extension pushes back the deadline for requesting a hearing to March 20 and the deadline for notifying appellants about the hearing date, place, and time to April 1. The CEO must notify the Office of Policy and Management (OPM) about the extension within two weeks of granting it.

If OPM authorizes a municipality to delay a revaluation due to the number of pending appeals, then a grand list based on the prior year’s assessments must be finalized within 30 days of OPM authorizing the revaluation postponement. Increase notices must be sent to taxpayers within 10 days and taxpayers must be given the right to appeal within 30 days of the notice.

Board's Action The law allows the board to increase or decrease the assessment on any taxable real property or any interest in it. But the board can reduce the assessment only if: 1.the appellant or his or her attorney or agent appears at the hearing and agrees to be sworn before the board and answers all questions regarding the property and 2.it records the reduction in the minutes of the board's meeting If the board increases or decreases the assessment, the law generally freezes the new value until the next time the town revalues property, which all towns must do at least once every five years. But the assessor can change the board's assessment to comply with a court order, correct an error, or reflect a change in the property's physical characteristics An assessor may change the assessment for other reasons before the next revaluation, but the law requires the assessor to explain to the board in writing the reasons for doing so and append them to the property's record.

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Appeals to Superior Court

General Assessment Appeals Deadlines Event Deadline

The appellant can appeal the board's action to the Superior Court for the judicial district where the property is located, but the appeal does not suspend any action the town is taking to collect up to 75% of the tax owed on the property (90% for property assessed at $500,000 or more).

Assessors must complete and sign grand list Assessors must notify owners whose assessment was increased

Appeals must be made within two months of the date the board mails notice of its decision.

Individuals wishing to appeal assessments must file a written appeal with the board of assessment appeals Appeals board notifies appellants about the date, place, and time of the appeal hearing Board hears and decides appeals

January 31 Within 10 days of completing grand list February 20 March 1 March 1—March 31

Taxpayers may bring wrongful tax claims directly to Superior Court (without first appealing to the board). A wrongful tax is one that is laid on property that is not taxable or was computed on an assessment which, considering all the circumstances was manifestly excessive and could not have been arrived at except by disregarding the property valuation statutes.

This type of appeal must be filed within one year of the October 1st assessment date related to the assessment being appealed.

ATTENTION: Appeal Filing Window February 1st-20th

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