The Benefits and drawbacks of Residential Or Commercial Property Management Warranty for Landlords

Published Feb 24, 23
8 min read

What is a warranty for your home?

Home warranties are agreements which cover the repair or replacement of the appliances and systems in your home if they fail because of normal wear and wear and tear. Home warranties aren't like insurance for your home, which protects the structure of your home from natural disasters or theft however they do ensure the security of your home's systems as well as appliances. Home warranties are available for all kinds of homes and can help minimize the costs of repairs and replacements which makes them ideal for both new and existing landlords. The service fee is an amount that is charged to the home warranty company for each claim. The majority of providers provide coverage for older homes, however certain ones don't cover items in the home with existing conditions.

What are the benefits of having a home warranty in order to rent properties?

1. Protection against high repair costs

A home warranty is used to protect rentals from expensive repair cost. It provides fast service, convenience and has no charges for service. This can reduce the time and expense needed to repair your home and provide financial protection for unexpected repairs and replacements. Additionally, the protection of regular maintenance helps increase tenant and client retention, since tenants can solicit service without the need for approval from landlords and protected appliances and systems can be fixed quickly, which reduces the possibility of negative reviews. All of this can help landlords save money while charging higher rents, putting more money in their pockets.

2. Common household appliances covered

What appliances are covered under the warranty on homes for rental properties and what are they covered for? [Expanded list] Refrigerators, dishwashers, clothes dryers, washers for clothes, trash compactors, ranges / cooktopsor ovens, microwave built-in ovens, built-in food centers, heating systems air conditioning, water heaters, garbage disposals, electrical systems central vacuums, smoke detectors, plumbing systems, doorbells, ceiling and exhaust fans, the sump pump, septic tank spa, pool and garage door openers.

3. You can rest assured that the repairs will be completed

Landlords have many benefits of having repairs covered under a home warranty. With the coverage of repairs, maintenance, and replacements, landlords can protect themselves from having to pay out money at any time there is a problem. Additionally, a home warranty plan simplifies the home repair process for everyone involved . sending a claim to the warranty company. The provider will then send a person to their rental property to address the issue. Property management companies will experience a decrease in the amount of invoices from third-party contractors and insurance costs because of the fact that many repairs and replacements can be done quickly. A home warranty for rental properties can help tenants and clients retain their customers by addressing the most common reason for tenants to abandon their homes: maintenance issues. In allowing tenants to request service without the approval of their landlord as covered, the appliances and systems are fixed quickly, resulting in less opportunity for negative reviews from frustrated tenants. Home warranties offer landlords a cost-effective and efficient solution for repairs to rental properties.

4. Reduces the time and effort involved in the search for a contractor.

Utilizing a home warranty on rental properties can help save time and hassle when trying to find a contractor. Instead of having to go out and search for an experienced contractor with a good reputation on an emergency basis, a landlord simply needs to send a claim to their home warranty provider , and they will dispatch someone to their rental property to take care of the issue as soon as possible. This could be more efficient than having to contact multiple contractors to determine the most suitable one for the job.

Property managers however they can cut down on time and effort by bringing a reliable vendor they already know to manage a home. They know the prices, the work, and the history of the vendor. There is no need to look around for the best contractor. Additionally, experienced contractors are more likely to be honest and respectful to tenants which is essential for tenant satisfaction.

Additionally, getting service from a home warranty company can take longer than expected, sometimes taking a few days. This can result in dissatisfied tenants who expect their repairs to be addressed swiftly. This adds to the frustration. Property managers act as intermediaries between the tenants, the homeowner warranty company, and property owners.

Overall, using a home warranty on rental properties can be advantageous because it will save time and trouble of finding a contractor. Property managers can assign trusted contractors they have already worked with to homes they manage, while homeowners can file a claim to their home warranty provider and have the problem fixed in no time.

5. Budget for repairs

A home warranty that can pay for repairs and replacements of appliances and mechanical systems at home can help budget operating expenses much easier for property owners who own rental properties. A home warranty plan helps in making repairs more predictable, making tenants happy and increasing the bottom line. Additionally, it provides greater convenience as it is a one stop shop for all maintenance and replacement requirements, as well as not having to swap money on service calls. In addition having a home warranty can help lower the owner's annual expenses by covering the majority or all of the expense of repairing and replacing old or damaged equipment and systems.

6. Protection against landlord liability

A landlord's home warranty guards against liability for landlords. It offers skilled repairs to equipment and systems that are failing because of normal wear and tear or old age. This reduces the chance of lawsuits arising from hability claims by tenants as repairs and replacement of the appliances and systems are completed quickly. The covered repairs make it less necessary to seek approval from landlords as well as resolve disputes. This further decreases the liability of landlords. A home warranty can give additional financial security as it is tax-deductible and helps to reduce rental costs.

7. The ability to select between various warranty providers

It can be difficult to choose a home warranty provider for rental properties. It is important to think about choices for coverage, the cost and reputation of the company, as well as customer support and any additional features. We recommend looking at the various plans for service, extensions, coverage depth, plan cost, industry reputation, customer support infrastructure, and additional options when choosing the right home warranty company. It is also important to be aware of the possibility of choosing your own contractor, and then upgrade your coverage package. Also, how easy it is to transfer your plan from one person to another.

Based on our research, plan coverage will be the main factor, with customer support as the second most significant factor. Reputation in the industry, availability of plans, and additional features should be evaluated equally, and price range is not the main factor in choosing a home warranty provider to suit your needs.

If, for instance, the rental property you are renting features a saltwater swimming pool, appliances from the pro-series, or a reverse osmosis device, Liberty Home Guard has a range of accessories that could be appealing to you. If you're not available to take care of repairs within the standard 30-day guarantee on workmanship, AFC Home Club offers an extended-plan guarantee that could give you an additional level of protection. HomeServe specialized plans may be a good choice for those most concerned about their rental property's utility lines and American Home Shield may be the ideal choice for those who'd rather choose a home warranty company with more coverage limits.

Ultimately, we recommend requesting an estimate from at three providers for home warranties and carefully reviewing the terms of the plan to make sure you're aware of all limitations and exclusions from the policies. This will help you make educated choices and help you choose the right home warranty provider for rental properties.

8. You can benefit from discounts and other offers

A home warranty plan for rental properties could help reduce costs in two ways. The first is that these plans give you a more convenient and cost-effective solution to repair major appliances and systems in the home since they will eventually break. This could save landlords money in regular repair costs. The other advantage is that the cost of premiums and service charges from the home warranty plan can be included on tax returns as operating expenses, subject to the landlord's registration. This can reduce their overall income and tax burden.

9. Ability to make repairs and submit them online

Renters can find home warranty plans very beneficial as they allow them to repair their property. The landlord only has to file a claim with their warranty provider when the covered item fails or fails to function. The warranty provider will dispatch an expert to the rental property to address the problem as quickly as they can. This can save landlords time and effort searching for a trustworthy contractor that can be reached on very short notice. Home warranty plans enable landlords to ensure that their rental property is properly taken care of by providing quick service and convenience.

10. Greater tenant satisfaction

The use of a HomePRO Warranty can provide many advantages for tenants both with regards to customer service and satisfaction. The HomePRO Warranty reduces service calls since tenants can make demands directly, without waiting for the approval of the landlord. This improves the relationship between landlords and tenant. HomePRO Warranty also eliminates the requirement to maintain a connection with numerous suppliers. The warranty will cover repairs and replacements for various appliances and systems. Tenants can rest assured that they will receive timely and efficient service. Lastly, having a warranty on your home can help to increase the rental cost of the house, allowing landlords to make more money every month.