CT Real Estate Today - March 2022 Edition

In This Month’s Edition 7 Reasons To Avoid Venmo, Zelle & PayPal For Rent Collection

The Complete Spring Maintenance Guide For Property Managers

5 Reasons You Should Require Renters Insurance In The Lease

Checklist To Avoid Discrimination Complaints When Screening Tenants

March 2022

Published by:

Table of Contents Publisher’s Message A Message From Bob DeCosmo, President Of CTPOA

News And Views From The Capitol The Democrat Socialist Of America

Realtor Report Top Tips For Realtors In 2022

Insurance Insights 5 Reasons You Should Require Renters Insurance In The Lease

Property Management Tips & Tricks The Complete Spring Maintenance Guide For Property Managers

Helping Property Owners Since 1994

Published by: CTPOA

CTPOA’s Mission:

Financially Speaking Consumers Face ‘Deep Funk’ As Inflation Drives Up Connecticut Prices, Experts Say

Get Energy Efficient 10 Energy Saving Tips For Spring

The Legal Corner Real Estate Frequently Asked Questions

Educate our members on the Best Practices.

Increase profitability.

Provide access to Core Services.

Advocate for Property Owner Rights.

Meet Our Team:

Vendor Spotlight 7 Reasons To Avoid Venmo, Zelle & PayPal For Rent Collection

Tenant Screening Tips & Tricks Checklist To Avoid Discrimination Complaints When Screening Tenants

Bob DeCosmo Carmine DeCosmo Melissa DeCosmo Paul Jenney

Chelsea Sayegh

PO Box 4795 Waterbury, CT 06704 800-369-6153 info@ctpoa.com

By Bob DeCosmo Advocate For Property Owner Rights It’s Time To Speak to Legislators About Housing Policy I hear far too often from housing providers that the landlord / tenant

laws heavily favor renters and they need to be more balanced. Year after year, many housing policies are proposed during the legislative session and lately, these proposals do seem to favor the tenants.

We are at a point now where we really need to question the Legislatures’ motive for pushing these housing policies so far to one side.

When I first became a housing provider advocate back in the mid 1990’s, we use to turn out dozens of property owners and agents for local meetings and put a busload of people together annually to go to the Capitol to testify and for Realtor Day at the Capitol, but how times have changed. It’s frustrating now trying to get people involved

04 / Publisher’s Message

in speaking up at our State Capitol and increasingly hard to do each year.

The one big excuse from landlords not willing to get involved is they fear retaliation from local officials and that’s absurd and is tyranny, we should not live in fear of our government. Further, if

local code officials retaliated against housing providers when they speak at the Capitol they would be disciplined by the city and face potential lawsuits.

There is an agenda sweeping the nation to Cancel Rent, Eliminate Evictions, make housing a basic human right and hide a rental applicant’s true criminal and rental payment history. It’s a

scary agenda as providing safe and decent housing comes with many operating expenses so it can’t be for free, but policy is now advancing in this direction in Hartford.

Housing providers better find some courage up and speak out to their local elected officials because this year there are many proposals that will further limit property owner rights, make renting

to perspective tenants much more risky and there is talk about limiting rental increases, but no such talk about limiting operating expense increases.

Get involved, Democracy is not a spectator sport!

05 / Publisher’s Message

The Democrat Socialists Of America By: Bob DeCosmo, President of CTPOA

If you just though this group was just part of the national news, I must inform you that the Democrat Socialist movement is here and active in Connecticut. On March 1st,

one of their loyalists provided testimony at the Public Hearing in the Housing Committee and it was quite an earful.

If you are not aware of the Democrat Socialist of America, DSA for short, here is an excerpt taken from their website. They describe themselves as follows; “The Democratic Socialists of America is the largest socialist organization in the United States, with over 92,000 members and

a few.”

“We are a political and activist organization, not a party; through campus and community-based chapters, DSA members use a variety of tactics, from legislative to direct action, to fight for reforms that empower working people.”

They have a detailed game plan including housing and advocate for tactics including preparing to disobey our laws and going to jail, check it out. In Connecticut they claim

to have branches in Bridgeport, Hartford, Middletown, New Haven.

chapters in all 50 states. We believe that

What’s their proposed housing agenda?

working people should run both the

From what I hear, it’s to eliminate private

economy and society democratically to

ownership of rental properties by 2030

meet human needs, not to make profits for 06 / News & Views From The Capitol

and have the government control that

sector of the housing market that serves the working-class and low-income families!

Unfortunately, not many believe the government can do much right these days.

This is a recipe for disaster and there’s no “pride of ownership in government housing!

Considering their plans to institute “Rent Control”, this will surely bring us a step closer to eliminating private ownership of housing. Further, rent control has never truly worked anyplace it was ever enacted!

In fact, rent control prevented more affordable housing from being created,

intended to some legislators, but we can’t afford these policies and they are not in the best interests of the state of Connecticut. In our society, nobody should get a free ride or be irresponsible and get rewarded.

decreased grand lists for taxation and

It’s evident that there is much apathy in the

increased blighted properties because

rental housing community regarding politics

there is no incentive to invest money into

and so much vigor from the socialists but

these rent-controlled cities.

there is a choice to be made soon.

The DSA members are young and vocal,

We must remember that November brings

they outwork the taxpayers and have

another election and a new General

nothing to lose so they are aggressive.

Assembly will be configured and the

Many of their landlord/tenant polices were

governor’s seat is on the line, much is at

on the Housing Committee’s March 1st

stake!

public hearing agenda at the State

If you are a housing provider, I wouldn’t sit

Legislature.

back and expect things to get better by

The DSA folks are making inroads at State

themselves.

Capitols. From their cancel rent movement to eliminate evictions, they are making the their agenda move forward. Unfortunately, in Connecticut these policies sound well

07 / News & Views From The Capitol

Top Tips For Realtors In 2022 By: The Editorial Team, with expert-market.com An agent’s ability to negotiate deals, schedule

growth in the previous year and which ones did

appointments, and assist customers is critical to not. their success in real estate. You must also keep up with current events and trends in the sector.

Consider a company strategy as a recipe or set of instructions for re-creating what worked

The best real estate agent success tips, on the

previously. We measure success and failure by

other hand, are those that assist in the

whether or not a deal was completed and

generation of a constant supply of high-quality

whether or not we made money. Long-term

leads. In 2022, the following pointers will assist

success isn’t usually so straightforward.

you in becoming a more effective agent:

1. Invest money in your brand Name and brand recognition are vital if you work for a large or small company, or if you

have started your own real estate firm.

2. Make a business strategy Each of us should review or create a business plan for the following year. This may appear to be a time-consuming activity, but it will reveal which activities contributed to a company’s

08 / Realtor Report

A business plan pushes you to examine your company’s history as well as the effectiveness of lead generation tools.

3. Set a Timetable Secondly, decide which day of the week is best for holding open houses. If you decide to hold open houses during the week, attempt to schedule them during times when possible buyers are on their way home from work.

Determine how many hours per week you can leads over time and continue to build a devote and do your best to stick to it. It’s best to set aside four to six hours.

Younger agents who are just starting in their careers will want to devote even more time to open houses. Try aiming for eight hours each week, which you can divide into four hours on Saturday and Sunday to maximize your prospects.

Therefore, avoid establishing unrealistic or overly threatening goals, as this might lead to frustration. Choose hours you can commit to every week without putting too much mental or physical burden on yourself when creating a schedule, even if it means investing in a Real estate CRM.

4. Prospects Should Be Added To Your Database By the end of each open house event, you should have collected the contact information of a large number of prospects. You should have plenty of people to add to your database for long-term follow-up, whether they were internet leads, people you met door-knocking or genuine attendees who filled out your sign-

in sheet.

Don’t panic if you don’t find any clients who are ready to work with you right away that

database to work from.

5. Take part in community events Local real estate brokers have received a lot of support from the community where we live.

Although it is impossible to be involved in every cause, we must nevertheless support our community and the activities that are planned as real estate agents.

Raising, or helping a cause that requires money or physical aid is a fantastic way for real estate agents to get involved and connect. We do want to remind you that you should join with a generous heart and not anticipate business referrals as a reward. A real giver will be rewarded at all times.

Conclusion Make a list of all the activities/practices that often occur throughout a real estate transaction (sale). To set yourself apart from the competition, you must modernize your professional approach with at least one completely new technique for each process/ activity.

When it comes to real estate, a successful agent competes with himself. He even attempts to keep one step ahead of himself.

weekend. You’ll create relationships with these prospects and transform them into clients down the road if you nurture these

09 / Realtor Report

5 Reasons You Should Require Renters Insurance In The Lease By: Megan Bullock, with apartments.com As a landlord or property manager, you can and

renters insurance policy to your lease. How much

should require a tenant to buy and maintain renters

coverage you require from a renters insurance

insurance in the lease. Although renters insurance

policy is up to you, but be sure to discuss this with

isn't necessarily required (depending upon your

your attorney as well. The benefits of renters

state laws), it's a good idea to make it a requirement insurance are as follows:

to rent your property. If you’re weighing this decision, be aware that adding a renters insurance

1. It mitigates the threat of a lawsuit

requirement in the lease will benefit you as much as Renters insurance is extremely helpful when it it will the tenant. Renters insurance is relatively comes to keeping you out of court. If the tenant inexpensive for tenants — often less than $20 per

doesn’t have rental insurance, and there’s an

month. Many renters assume that a landlord’s

instance where damage occurs involving the

insurance policy covers their personal property,

renter’s belongings, there’s a chance that the tenant

which it does not.

will try to claim that the landlord is responsible for

What Are the Benefits of Requiring

said damage. Consider this scenario:

Renters Insurance?

A tenant has friends over, and a guest is injured.

Landlords should require renters insurance in the

The tenant does not have renters insurance, and

lease, because by doing so, you are protecting both the injured guest (or the hospital) files a claim you and your tenant(s). An extra layer of protection against the landlord. Even if the landlord’s never hurts when it comes to owning and renting

insurance company agrees to pay, higher premiums

property. But because laws vary by state, be sure to are sure to follow. If the tenant did however have renters insurance, it would take the landlord out of speak with an attorney about adding a mandatory the scenario.

10 / Insurance Insights

insurance, and the injured guest (or the hospital)

paying the deductible, which can be a substantial

files a claim against the landlord. Even if the

amount of

landlord’s insurance company agrees to pay,

money. If

higher premiums are sure to follow. If the tenant

the tenant

did however have renters insurance, it would take

has

the landlord out of the scenario.

renters

2. It reduces your responsibility If there is a fire or other type of damage-causing

insurance, the policy will likely

incident in your rental, the tenant may feel that you cover your homeowner’s insurance deductible, are responsible for finding them a temporary place easing the financial burden of this situation on

to stay. In some states, you are in fact responsible your end. for this and must provide relocation benefits.

However, tenants with renters insurance will not

5. It will give you peace of mind

need this from you. Their renters insurance will

Knowing that your tenants have renters insurance

handle this, and you will be free to deal with

is one less thing you have to worry about as a

repairing your rental.

landlord. You won’t have to face lawsuits and pay

3. It will help you find responsible tenants If an applicant claims that he/she can’t afford renters insurance, then there is a good chance that their income will not meet your requirements.

accompanying legal fees for issues that are not your responsibility. Both you and your tenant(s) will benefit from purchasing and maintaining a

renters insurance policy, and it will keep either of you from having to deal with uncomfortable financial and legal scenarios in the future.

If a potential tenant cannot pay for the monthly

Hold Annual Checks for Renters

rate for renters insurance, you are risking renting

Insurance Policies

to a tenant who cannot pay rent in full or on time.

Many renters, whether they are required or not,

In the lease, it will state that the tenant must show

purchase and maintain renters insurance for their

proof of rental insurance before moving in.

own benefit. So if you come upon the situation

However, it’s possible that a tenant can let the

where a tenant cannot afford that additional cost

policy lapse, in which case it would no longer be

or does not care to purchase a renters insurance

active. To avoid this scenario, have the tenant

policy, it may be in your best interest to continue

show proof of renters insurance annually —

looking for another applicant.

typically as a requirement for renewal. If renters

4. It covers your deductible

insurance is a mandated part of the lease, the tenant’s canceling of the policy or allowing it to

If a tenant damages the property, such as

lapse is grounds for termination. Be sure to inform

inadvertently causing a fire, your insurance policy

your tenant of the importance of renters insurance

may pay the repair costs. However, you will be left before he/she signs the lease.

11 / Insurance Insights

The Complete Spring Maintenance Guide For Property Managers By: Rent Manager, with rentmanager.com Spring will soon be here, and warmer weather is well on its way in many parts of the country.

For residents, this means pool parties and outdoor barbecues are on the horizon. For

property managers and landlords, it’s a whole different story. The departure of winter means it is time to inspect your properties to evaluate any damage the cold, snow, and ice may have caused and prepare for the summer heat.

The spring maintenance guide for property managers, by property managers.

Landscaping What’s the first thing that happens when the sun begins to shine, and the weather warms up? People want to be outdoors. Inspect the landscaping at your property to see what needs to be shaped up: trees and shrubs, new soil or lawn fertilizer, flower beds, etc. These tasks are critical for the TLC of your grounds as summer nears.

Power wash decks, steps, sidewalks If your property features a deck or patio, now is the perfect time to get it in pristine condition so

We asked our social media audience of

that your residents can enjoy them to the

property management professionals, what was

fullest. Power washing an outdoor deck each on the top of their to-do maintenance list for this year helps keep it looking new and minimizes spring and used their tasks to build the ultimate the havoc that may have been caused by the checklist for property managers. See the list

blankets of ice, snow, and sleet it faced.

below!

12 / Property Management Tools & Tips

Paint the exterior

start their systems.

Spring is a great time to give the exterior of

Re-caulk doors and windows

your property a face lift, and a fresh coat of paint can work wonders for any property.

Whether you opt to smarten up the entire property or decide to just paint the front doors, this task will give you added curb appeal throughout the spring and summer.

Caulk on windows and doors may have worn during the winter. Inspect these areas on the exterior of your buildings and re-caulk as needed. Test for air leaks as well—you don’t want the cool air inside your units escaping through unfilled cracks.

Clean the gutters

Check wood trim

Debris clogs over time as leaves, branches, and grime fall onto the roof. The buildup can take a toll

Inspect any exposed wood on your porches, deck, doors, and windows for rot, insect damage, etc. and take the necessary steps to

on your

repair. Getting this task completed before the

gutters,

April showers cause more damage will benefit

causing

you in the short and long run.

them to rip

Replace torn window screens

off or cause leaks that will damage the walls, siding, and roof of your buildings. Water leaks can develop into mold, which leads to health issues and additional maintenance to treat.

Examine the windows of your property and make sure the screens are in good shape.

Holes and tears make it easier for pests to get into your units. If you spot any window screens that have damage, be sure to replace them so your residents can enjoy the warmer

A/C maintenance Extremely low temperatures can affect your

air conditioning systems, causing problems when your tenants decide it’s time to start up the A/C. It’s important to inspect your units in the spring to make sure everything is still intact (panels, pipe insulation, outdoor coil). If you cover the coils for winter, make sure to remove the covers before your residents re-

weather that’s heading our way.

Tune up outdoor grills If your property offers residents access to outdoor gas grills, you’ll want to make sure they are tuned up and ready for BBQ season.

Give your grill a deep cleaning, replace the grates as needed, prep the propane, and you should be ready to go – Happy grilling!

13 / Property Management Tools & Tips

Replace broken lights and check

windows, as well

patio furniture

as checking/

The final exterior task on our list is making sure you’re providing top-level comfort for your residents. Outdoor lighting on walkways/patios may have been damaged

during the winter—replacing bad bulbs and

treating for ants, wasps, cockroaches, and other pests that may be hiding out in your units this spring.

lighting equipment will help tenants feel

Plumbing

secure on your property at night. If you

Preparing your plumbing for the spring is

have an outdoor area that has furnishings,

different than prepping for the colder

you’ll want to conduct a quick inspection to

months. It’s a good time to do a few basic

make sure that the cushions aren’t worn

tests to make sure your systems are

and that the furniture is in safe, usable

working the way they’re supposed to.

condition.

Check both indoor and outdoor faucets,

Spray for pests

pipes, and sump pumps, as well as

People aren’t the only ones who want to hideaway inside during frigid months. As temperatures warm up, pests will come out of hiding as well. You’ll want to wipe down

irrigation systems and patio drains. The change in temperature can cause leaks and blockages, which you’ll want to fix right away.

14 / Property Management Tools & Tips

Drain and inspect water heaters During the winter, sediment can build up in hot water tanks. How much/how fast sediment builds up will depend on where you live and what type of tank you have. Draining the sediment will help your water heaters last longer. This is also a good time to double check temperature gauges and reset them for the spring if needed.

from your property’s HVAC systems. Air filters defend your units from countless air pollutants that your residents would prefer to stay outside. Plus, dirty A/C filters don’t just hurt your air quality; they’ll hurt your wallet.

Check dryer vents for lint This task may seem simple, but it’s extremely important and

often overlooked.

Replace batteries in the smoke and

The U.S. Fire

carbon monoxide detectors

Administration reports that every

If your units contain battery-powered

year nearly 3,000

detectors, remind your tenants or task your

home fires are

maintenance team with changing the batteries started by clothes in all dryers, and the smoke and

leading cause is the buildup of lint. When

carbon

ducts, hoses, and vents are congested with

monoxide

lint buildup, dryers can overheat, causing a

detectors.

fire to ignite.

Spring is also an

Clean carpets

ideal time

If you live in a part of the country that receives

to run tests to make sure all safety systems

heavy snowfall during the winter, you may

on your property are working correctly to

want to use this time to inspect the carpets in

ensure everyone is safe and protected.

your units. Snow, slush, and salt were

Change filters

probably tracked in during the past few months, causing your beautiful flooring to look

As the seasons change, indoor air filters are

dirty and damaged. Inspect, clean, and repair

likely ready for a change as well. Be sure to

as needed.

use this time to replace your filters. Changing furnace and A/C filters ensures that your tenants are getting the maximum benefits

15 / Property Management Tools & Tips

Consumers Face ‘Deep Funk’ As Inflation Drives Up Connecticut Prices, Experts Say By: Alexander Soule, with ctinsider.com New England prices jumped by nearly a

an effort to help lessen the impact of the

percentage point on average in January

rising prices.

from a month earlier, with inflation particularly intense for items like fuel to heat homes for households not on fixed contracts, and vehicles or replacement parts for those needing repairs.

Last week,

the White House listed initiatives designed to

The U.S. Bureau of Labor Statistics

take the air out of inflation, from

reported last week that inflation

authorizing “pop-up” container yards in

nationally held steady at 0.6 percent in

Georgia and North Carolina to free up

January, contributing to a 7.5 percent

dock space at the port of Savannah, to

jump from 12 months earlier. BLS does

allow ports greater leeway in spending

not release price estimates for specific

federal grant money to deal with the

goods at the regional level.

crisis. But trucking companies continue

The Federal Reserve is expected to raise interest rates in stages this year in

16 / Financially Speaking

to struggle recruiting drivers to deliver products, whether imports or manufactured in the United States.

“Everything’s out of stock,” said Andy

Earlier this month, the CEO of General

Bucklin,

Motors said she sees signs of the supply

manager at

issue easing.

the new Golf Lounge 18 entertainment center in Danbury. “T-shirts, tequila, golf equipment. It’s crazy right now.”

“If there’s significant COVID disruptions or other natural disasters, that could have an impact,” GM CEO Mary Barra said on a conference call. “With the plans we have in place now, by the time

we get to the third and fourth quarter,

Nationally, grocery prices were up 7.4

we’re going to be really starting to see

percent in January. In its own report last

the semiconductor constraints diminish.”

month, the U.S. Department of Agriculture found prices eased in December for beef and pork, but they remained high from a year earlier at 19 cents and 15 cents on the dollar, respectively.

Even as prices on everyday goods have risen, so have lease rates for renters as their apartments come up for renewal.

And the cost of heating homes is rising, whether for oil furnaces or those that run on natural gas.

But for those needing a vehicle immediately, the likelihood of having to spend thousands of dollars more — in some cases for a used car with a shorter

lifespan — means that expenses will have to be cut in other areas to make budgetary ends meet.

“The consumer is polling negatively on almost everything when it comes to the economy,” Chris Rupkey, chief economist for Fwdbonds based in New York City, said in a note to clients. “The

While automakers have been dogged

consumer is clearly in a deep funk, and if

with difficulties getting needed supplies

they decide to call it quits, then the

of semiconductors for new cars, other

economic growth we have seen is going

vehicular parts have also been in short

to fade fast.”

supply, causing delays for customers to get some repairs.

17 / Financially Speaking

10 Energy Saving Tips For Spring By: Energy.gov, from energy.gov

With the start of a new season comes a fresh opportunity to find ways to save energy and money.

Here are just a few simple things you can do to improve the energy efficiency and comfort of your home as warmer temperatures arrive: 1. Service your air conditioner.

Easy maintenance such as routinely replacing or cleaning air filters can lower your cooling system’s energy consumption by up to 15 percent. Also, the first day of spring could serve as a reminder to check your air conditioner’s evaporator coil, which should be cleaned annually to ensure the system is performing at optimal levels.

2. Open windows.

Opening windows creates a cross-wise breeze, allowing you to naturally cool your home without switching on air conditioners. This is an ideal tactic in spring when temperatures are mild.

3. Use ceiling fans.

Cooling your home with ceiling fans will allow you to raise your thermostat four degrees.

This can help lower your electricity bills without sacrificing overall comfort.

18 / Get Energy Efficient

4. Cook outside.

On warmer spring days, keep the heat out of your home by using an outdoor grill instead of indoor ovens.

5. Install window treatments. Energy efficient window treatments or coverings.

Blinds, shades and films can slash heat gain

when temperatures rise. These devices not only improve the look of your home but also reduce energy costs.

6. Caulk air leaks.

Using low-cost caulk to seal cracks and openings in your home keeps warm air out -and cash in your wallet.

7. Bring in sunlight.

During daylight hours, switch off artificial lights and use windows and skylights to brighten your home.

8. Set the thermostat.

On warm days, setting a programmable thermostat to a higher setting when you are not at home can help reduce your energy costs by approximately 10 percent.

9. Seal ducts.

Air loss through ducts can lead to high electricity costs, accounting for nearly 30 percent of a cooling system’s energy consumption. Sealing and insulating ducts can go a long way toward lowering your electricity bills.

10. Switch on bathroom fans.

Bathroom fans suck out heat and humidity from your home, improving comfort.

19 / Get Energy Efficient

Real Estate Frequently Asked Questions By: Collins Hannfin, P.C with chgjtlaw.com 1. If I am buying or selling real estate, at what

3. When does a real estate broker earn his or

point do I need to hire a lawyer?

her commission and is it a fixed amount?

For most real estate transactions, the Buyer and

The standard real estate broker’s commission is six

Seller will use a real estate broker. To sell your

percent of the purchase price, however, the broker’s

home, the real estate broker will want a listing

commission is open to negotiation. The broker is

agreement signed. You should consult a real estate

normally entitled to a real estate commission when

lawyer before signing the listing agreement. It is a

he or she has procured a ready, willing, and able

binding contract when signed by both parties. In the Buyer. The broker’s commission is paid out of 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?

Seller’s proceeds at closing.

4. What is a binder?

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

In an area where real estate brokers are members

purchase price, is tendered from the Buyer to the

of a multiple listing service (MLS), brokers group

Seller. The offer to purchase is designed to hold the

their exclusive listings in order to give maximum

property from sale pending the preparation by

exposure to any potential Buyers. When a sale

Seller’s counsel of a formal contract. In some areas

occurs, the fee arrangements to the brokers are

in Connecticut, the Buyer proceeds immediately to

normally predetermined as contained in the multiple an offer/contract provided by a real estate broker. It listing agreements.

is definitely advisable to have this document reviewed by an attorney if there is not going to be a formal contract.

20 / The Legal Corner

5. At what point is a binding formal contract of

ensure good and marketable title. The Buyer pays

sale entered into by the Buyer and the Seller?

for the title search as a part of the services

After the offer to purchase or binder is entered into, the next step is for the Seller’s attorney to

rendered by his or her attorney.

8. Do I need to purchase title insurance, and if

draft a formal contract of sale. This contract is sent so, what does it cover? 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

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

to disclose to the Buyer about the condition of as lost or forged deeds, deeds executed by 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

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.

10. What happens at the closing?

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.

21 / The Legal Corner

7 Reasons To Avoid Venmo, Zelle & PayPal For Rent Collection By: Remen Rokowua, CEO of Rent Drop The pandemic has forced everyone to do more on their phones & computers than ever before.

And that includes landlords. Paper checks remain the most used rent collection method in the US. But a growing number of landlords are using mobile payment apps, especially Venmo, Zelle, & PayPal. This is understandable for several reasons. First, many Millennial & Gen Z renters already have these apps on their phones. So it is easy for them to pay this way. Second, using these apps is also easier for landlords. They send notifications when payment is sent. And they don't need to wait for a check to arrive in the mail.

• • •

Venmo charges sellers 1.9% + $0.10 per transaction PayPal charges sellers up to 3.49% + $0.49 per transaction Zelle also charges fees that vary based on your bank

And the reality is that rent payments are business payments. So if you are caught, these companies may automatically start charging you for collecting rent with their apps.

2. Send Limits

But the reality is that these payment methods have a ton of issues. So in this article, I'll share 7 These apps cap how much someone can send at reasons why you shouldn't use any of these apps once. So if you charge rent that is higher than the for rent collection. daily or weekly limit, your renter will have to send you two separate payments. This problem is more significant for Zelle than the other two 1. Hidden Fees options. You can see the limits below: One thing landlords love about these apps is that it is free to send payments. But that is not really true. These apps distinguish between peer-topeer payments (like splitting a restaurant bill) and business payments (like paying a barber).

And if you are a business payment, the fees can be massive:

22 / Vendor Spotlight

•

Venmo: $4,999.99 per transaction, $6,999.99 per week

•

PayPal: $5,000 per transaction, $5,000 per week

•

Zelle: Varies by the bank; $500 for banks not in the system, Bank of America has a $3,500 daily limit and $10,000 weekly limit

Venmo, Zelle, & PayPal offer no such

3. No Renter Autopayment

reminders.

One of the easiest ways to ensure on-time

5. No Automatic Late Fees

payment is by offering autopay. That's how most subscription services operate, including Netflix, Spotify, & HBO. The reason companies do this is because people are forgetful. For example, if someone

needs to remember to send money every month, it's a sure bet that one of those months they might forget. Even if they have the money

Connecticut allows landlords to charge a late fee after a 9 day grace period. But keeping track of how many days have passed since rent was due is tedious. A rent collection system would handle that for you. And none of the 3 apps

mentioned have built-in late fees.

to make the payment.

6. Bad Reporting

None of the 3 apps mentioned offer an autopay

If you've used any of these apps, you'll know

option. And that means one of two things. Either what I mean. The Venmo payment record is a jumble of you are manually requesting payment every single month, or your tenant is manually

payment

sending the rent each month.

amounts (both sent &

A system like that invites late payments and lots received). You cannot separate of frustration. payments by

4. No Automatic Reminders

type, so everything is shown together.

When a renter does forget to make a payment,

The transaction

landlords shouldn't have to nag them to send

notes aren't

the money. Instead, the software should handle

helpful. And if

late payment reminders automatically.

you want to add the data to a

Better yet, the app should remind renters ahead spreadsheet, of time that they have a rent payment coming you have to do it up so that they can take action to guarantee it is by hand. paid on time.

Venmo Transaction Log

23/ Vendor Spotlight

In fact, the reporting is so bad you could argue that paper checks are actually easier to report on.

Landlords should use a rent collection app that makes reporting easy, not more challenging than checks.

7. No Credit Bureau Reporting

A Better Alternative My company RentDrop offers a rent collection app that solves landlords' problems when using Venmo, PayPal, & Zelle. That includes: •

No fees on direct bank-to-bank transfers

•

High send limits of $5,000 or more for all

renters

Since Connecticut allows a 9 day grace period on •

Autopay option for renters

late payments, landlords must find other ways to

•

Automatic payment reminders

•

Automatic late fees

•

Straightforward reporting

•

Reporting rent payments to the credit

encourage on-time rent payment. In my experience, the best way is to report rent payments to the credit bureaus.

Reporting rent payments to the credit bureaus is both a carrot and a stick for renters. Good renters who pay on time will see their credit scores improve. And renters who consistently pay late will see their credit scores decrease.

None of the payment apps mentioned offer this feature because they aren't built for rent payments.

24 / Vendor Spotlight

bureaus (coming soon) We have built an experience that landlords love because we know they deserve better than Venmo, PayPal, & Zelle.

Want to check out the Rentdrop app? You can sign up here or reach out to me via email at remen@rentdrop.io to learn more.

For More Information Visit Our Website: landlordcollections.net Give Us A Call: (800)-369-6153

Checklist To Avoid Discrimination Complaints When Screening Tenants By: Paul Jenney, Compliance Director - TenantTracks TenantTracks recommends that you consult

2. The application is signed and dated and has

with your Lawyer before establishing a Tenant

authorized the property owner to conduct a

Screening Policy of your own. You must make

background check.

sure your policy does not violate any Fair Housing Laws.

We recommend that the criteria are signed and

3. “Bright line” blanket policies are STRONGLY

discouraged. In most cases, housing providers should conduct an individualized assessment

dated and can be updated as market conditions before determining that any record disqualifies change e.g., the rental market falls and you lower your requirement to attract more potential renters (accept more risk) and vice versa, if you get more applicants, you raise your minimum standards.

an applicant for housing.

Relevant considerations generally should include: •

arrest (see notes below) or conviction;

These suggestions are some examples of a criteria. TenantTracks makes no

•

•

Regulation! Pleasecheck with your attorney before implementing any new policy.

1. All information on the application is correct;

The amount of time that has passed since the activity occurred;

representations of their validity nor ability to comply with any State or Federal Statute or

The nature and severity of the eviction,

That facts or circumstances surrounding the offense or conduct;

•

The age of the individual at the time of the conduct;

any factual errors may result in a rejection.

26 / Tenant Screening Tips & Tricks

•

•

Evidence that the individual has

Criminal CONVICTION records may be

maintained a good tenant history

reported indefinitely under the Fair and

beforeand/or after the conviction or

Accurate Credit Transactions Act (FACTA)

conduct; and

update of 2003, while records of arrest are seven (7) years like any other credit item.

Evidence of rehabilitation efforts.

4. Arrest records can be problematic on their own due to racial profiling and a known disproportionate history of policing however HUD does not outright ban the use of them, but their use MUST have a

5. Eviction History. How long ago is acceptable? How many evictions in total?

The reason for the eviction? Was the debt to the landlord ever repaid in part or in full?

dee dive into the nature and substance,

The FCRA only allows TenantTracks to

and history. One may be nothing, while a

report eviction records for seven (7) years.

dozen or more may be indicative. More information can be found here:

6. Landlord History. TenantTracks may only report information obtained from

https://www.hud.gov/sites/documents/

owners and management companies for

FAQ_EXCLUDE_ARREST_RECORDS.P

seven (7) years including notices to quit,

DF

noise issues, cash for keys, etc. You should consider how many? How recent?

Any records of criminal activity the property owner would deem puts the

7. Landlord References. If they are a

property, its owner, employees, or other

career renter, I would ask for the last three

residents at risk, including, but not limited

at minimal and then call the second two.

to, sex offences, violations of the US

They have nothing to lose by giving the

Patriot Act covered by the Office of

truth, but grill them about the information,

Foreign Asset Control or other

last addresses they gave on that

international judicial authorities, arson,

application (might be hiding something),

domestic violence, any other crimes of

and did they pay the rent on time/in full/

violence, weapons violations, or any other how many late-payments, any problems. crime that would violate your particular

This may seem like “Landlording 101”, but

states’ laws regarding illegal use of a

this is helpful information on how they will

rental property.

perform as your tenants.

27 / Tenant Screening Tips & Tricks

8. Credit History. What is the minimum

11. Standards can change based on

Credit Score to be accepted? This will

market conditions, types of property (A, B,

vary by property condition, city, and State

C, etc.) and vacancy rates. You should

most likely. While you may have

keep a change log showing the timestamp

standards for each property for numbers

for your protection.

or types of late payments, charge offs, collections, etc. However, its best to

remove any subjective decisions to avoid the appearance of discrimination.

12. Always issue an adverse action notice if you deny the applicant or change ANY of the terms and conditions of the tenancy offered.

9. If your property is carpeted, do they own a vacuum cleaner? It’s a strange criterion, but you want to protect your investment, so it IS a fair question to ask.

10. If employed, how long should they

Questions? Get in touch. We’re happy to

have been there? Can you independently

help. www.tenanttracks.com

confirm this? We recommend calling the

Give us a call at: 888-610-4710

HR Department and faxing/emailing a release to provide you with the information, as an alternative you can ask for a copy of the applicant's last tax return.

If not employed, ask for proof of income.

28 / Tenant Screening Tips & Tricks

What’s Happening Near You? The Statewide Events and Meetings calendar is a resource for local landlords and property owners to meet up, network and grow your real estate opportunities.

Get Involved, Stay Informed.

March 2022 Sun

Mon

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Norcom Mortgage

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NHMR

NFCAR

Events & Meetings & Networking

Greater Hartford Norcom Mortgage Association of (Ask An Appraiser) Realtors (GHAR)

New Hav Middles Realtor (NHMR

Next Meeting: Mar. 15th

Next Meeting: Mar. 23rd

Next Meeting: Mar

Time: 8:00 AM - 9:00 AM

Time: 12:00 PM - 2:30 PM

Time: 11:00 AM - 1

Where: 430 New Park Ave Where: 389 Meadow Street Hartford, CT 06110 Waterbury, CT 06702 Contact: 860-561-1800

Where: Webinar

Contact: 203-234-

Contact: About: Over 90% o Brenda@midstaterealtors.co About: CT Legislators from business owners a m the Housing Committee overpaying on their and the Real Estate/ About: Join mortgage loan NINETY percent! T Insurance Committee will originator Katie Stevenson of money you are ess be at GHAR to discuss Norcom Mortgage and Chief giving away to the potential legislation Appraiser Eli Pascone of and trust me, they involving the real estate industry. Representatives ValueQuest Appraisal deserve it! from CTR will also be in Management attendance. This is a great to learn more about the It’s time to stop giv chance to get industry appraisal process. your hard-earned m updates from our and start keeping it representatives who are at Come with questions and the decision-making table. your family, and yo scenarios you would like to business, especiall discuss.

More info here! the recent rise in in More info here!

More info here!

ven sex rs R)

Northern Fairfield County Association of Realtors (NFCAR)

r. 30th

Next Meeting: Mar. 31st

11:30 AM

Time: 1:30 PM - 4:30 PM

-7700

Where: 15 Stony Hill Road, Bethel, CT 06801

of are r taxes.

That’s sentially IRS… don’t

ving away money t for you, our ly given nflation.

Contact: 203-744-7255 About: The Do’s, The Don’ts & Staying Compliant with Social Media Marketing.

Have An Event Or Meeting You Want Advertised In Next Months Edition?

Email Us the information and we’ll be glad to include it in the January edition of our E-Magazine!

More info here!

Email: info@ctpoa.com Or give us a call: 800-369-6153

P. (800)369-6153

F. (888)900-9773

E. info@ctpoa.com

www.ctpoa.com

CT Real Estate Today allows you to hit your target audience for all things real estate.

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ecticut Property Owners Alliance is of experienced property managers, S and landlords working together to usiness conditions for rental property owners.

ow CTPOA: https://www.facebook.com/CTPOA/

About Us Advocates For Property Owners The Connecticut Property Owners Alliance is composed of experienced property managers, realtors and landlords working together to improve the business conditions for rental property owners. The Alliance saves its members money on essential real estate services, reviews and testifies on pending legislation & law changes and offers its members workshops and meetings on topics that impact landlords.

Why The Property Owners Alliance Was Formed The Alliance strives to ensure your success in real estate by: •

Saving you money on essential real estate services

•

Informing you of law changes impacting your business

•

Providing workshops and meetings to help you become a better educated and prosperous rental property owner.