Leasing, renting, or collecting rent for others for a fee is real estate brokerage. Property management firms need a broker license.
CT · Researched October 7, 2026
Connecticut rules for property managers
Connecticut caps deposits at two months' rent (one month for tenants 62 and older), requires deposits in an escrow account with yearly interest, and allows late fees only after a 9-day grace period. Rent increases need 45 days' written notice. New 2025 laws require all-in advertised rent, a standard lease summary page from April 1, 2026, and ban revenue management software for setting rents.
Licensing to manage rentals in Connecticut
Checked against the official sourceOwners or lessors managing their own property, and their regular employees who live on site as superintendents, janitors, or custodians; attorneys and holders of a power of attorney for a specific deal; court fiduciaries and trustees; government employees; certain nonprofit housing employees.
Brokers must keep money held for others in a separate escrow or trust account at a Connecticut bank, subject to Commission audit. Tenant deposits must also follow the escrow and interest rules in § 47a-21.
Money
If a tenant turns 62 after paying more than one month, refund the excess on request. First month's rent and key or special equipment deposits are not counted as security.
Return the deposit plus accrued interest, minus damages, with a written itemized statement. Violations can cost twice the deposit. If the only failure is interest, the penalty is the greater of $10 or twice the interest.
Deposit the full amount immediately into an escrow account for the tenants' benefit. The Banking Commissioner sets the rate each year (0.52% for 2025). Pay or credit interest each year on the tenancy anniversary, and include accrued interest in the final refund.
The grace period is 4 days for weekly tenancies. Only one late fee per late payment, and it must be in a written lease. For subsidized tenants, the 5% applies to the tenant's share only. From January 1, 2026, the grace period is extended if the landlord's online payment system prevents on-time payment.
Besides the deposit, first month's rent, and key deposits, the screening fee is the only upfront charge allowed. Give the applicant a copy of the report (or how to get it) and the receipt. Move-in and move-out fees are banned.
For leases of one month or less, give notice equal to one full term. A tenant's silence is not agreement. You cannot raise rent during a lease term. Applies to rental agreements entered, renewed, or extended on or after October 1, 2024.
Towns with 25,000 or more residents must have a fair rent commission that hears tenant complaints about harsh or excessive rent increases. Tenants 62 or older or with disabilities in buildings of five or more units can only be evicted for good cause, which includes refusing a fair and equitable rent increase.
Notices and eviction
The notice to quit must be served by a state marshal or other proper officer (P.A. 25-78). Attach the Judicial Branch right to counsel notice. Use the official form language and state the reason.
Give written notice describing the breach and that the lease ends at least 15 days after receipt. If the tenant fixes it, the lease continues. If the same breach recurs within 6 months, the landlord may terminate on 15 days' notice without a cure. Serious nuisance and nonpayment skip this step.
Protected tenants (62 or older, or with disabilities, in buildings of five or more units) can only be evicted for good cause. Federal rules may require longer notices for subsidized units.
After the notice period, file a summons and complaint. The court often refers cases to mediation. After judgment there is usually a short stay of execution. The marshal notifies the town and the tenant before the eviction.
Abandonment means the occupants left without notice and do not intend to return, shown by removing most belongings plus either two months of unpaid rent or a statement they are leaving. Send the notice by regular and certified mail. After an eviction, the marshal moves belongings to town storage, and the town may sell unclaimed items.
Access and condition
The tenant may not unreasonably refuse entry for inspections, repairs, or showings. Without consent, entry is allowed only for emergencies, court orders, abandonment, or an extended tenant absence. 24 hours' notice is common practice.
Tenants can pay rent into court to force repairs, and have remedies if essential services stop. For a bed bug report, inspect within 5 business days.
Give the name and address of the manager and the person authorized to receive notices. Disclose fire sprinkler status and common interest community details where they apply. Offer a pre-move-in walk-through using the state checklist. Provide a rent ledger on request (since July 1, 2025). From April 1, 2026, every written lease must start with the Department of Housing's standardized rental terms summary form. Federal lead paint disclosure applies to pre-1978 housing.
Fair housing
State law also protects ancestry and creed, and covers victims of domestic violence, sexual assault, and trafficking. Lawful source of income includes housing vouchers.
Recent and upcoming changes
For leases entered on or after this date, landlords must offer a joint walk-through before move-in and use the state checklist if the tenant asks. Conditions noted on the checklist cannot be charged against the deposit.
Rent increases need 45 days' written notice for leases entered, renewed, or extended on or after this date. A tenant's silence is not agreement.
Landlords must give occupants a copy of the ledger showing charges, payments, and balance when asked.
An attested copy of a notice to quit must be served by a proper officer such as a state marshal, not an indifferent person. The marshal must notify the tenant at least 24 hours before an eviction, and the execution form must warn that staying may lead to arrest for criminal trespass.
Using revenue management software that relies on nonpublic competitor data to set rents or occupancy is an unfair trade practice. The 9-day grace period (4 days for weekly tenancies) gets 5 more days in any period when the landlord's online payment system blocks timely payment.
From October 1, 2025, advertised rent must include recurring mandatory fees and tenant payments apply to rent first, and from April 1, 2026, every written lease must open with the state rental terms summary form. Violations cost one month's rent plus possible attorney fees.
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Connecticut directory
Sources
- Conn. Gen. Stat. Chapter 830 (current)
- Conn. Gen. Stat. Chapter 830, 2026 Supplement
- Conn. Gen. Stat. Chapter 831 (security deposits)
- Conn. Gen. Stat. Chapter 832, 2026 Supplement (summary process)
- Conn. Gen. Stat. Chapter 392 (real estate licensing)
- CT Department of Banking: deposit index and interest rates
- Public Act 23-207 (SB 998), Connecticut General Assembly
- Public Act 24-143 (HB 5474), Connecticut General Assembly
- Public Act 25-146 (HB 7027), Connecticut General Assembly
- Public Act 25-78 (HB 7139), Connecticut General Assembly
- November Special Session Public Act 25-1 (HB 8002), Connecticut General Assembly
- Public Act 25-44 (SB 3), Connecticut General Assembly
Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.