Why Specialist Building Management Warranty Services are a Smart Financial Investment for Landlords

Published Feb 24, 23
8 min read

What is a home warranty?

Home warranties are a type of service agreement that will cover the cost of fixing or replacing your home's systems and appliances if they fail due to wear and wear and tear. They are not a substitute for home insurance which safeguards your home from theft as well as natural disasters. They are designed to safeguard the home's appliances and systems. They are available for all kinds of homes and are able to minimize the cost of replacements and repairs and are therefore ideal for both existing and new landlords. The cost of service is an amount that is paid to the home warranty provider for each claim. Although most companies offer coverage for older homes, some might not cover certain items with the condition that was previously covered.

What are the benefits of using a home warranty to lease properties?

1. Protection against high repair costs

A home warranty is utilized to safeguard rental properties from costly repair expenses. It provides fast service, convenience and no service fees. This will reduce the time and expense required to repair your property and also provide financial protection for unexpected repairs and replacements. Regular maintenance helps retain tenants and clients. Tenants can request service without landlord approval. Systems and appliances that are covered are also repaired promptly, which decreases the chance of negative reviews. This can help landlords save money while charging more for rent, thus making more money for their pockets.

2. Protection for household appliances that are commonplace

What kinds of appliances are covered under a home warranty for rental properties? [Expanded List] Refrigerators and dishwashers, clothes dryers and washers for clothes; trash compactors; cooktopsand ovens, built-in microwave ovens; built-in food centers; HVAC systems, heating water heaters; electrical systems garbage disposals; central vacuums, smoke detectors smoke alarms, plumbing systems. Doorbells ceiling fans, exhaust fans, sump pumps, septic tanks spas and garage door openers.

3. You can rest assured that repairs will be completed

Repairs made under a home warranty for rental properties provides landlords with numerous benefits. By covering repairs, maintenance appointments, and replacements, landlords can save themselves from having pay cash when there is a problem. Furthermore, a home warranty program makes it easier to complete the home repairs process for everyone involved . making a claim with the warranty company, who then sends someone to their rental property to fix the issue. Property management companies will experience less third-party contractor invoices as well as insurance expenses due to the fact that most repairs and replacements are done quickly. A home warranty for rental properties will help tenants and clients retain their customers by addressing the primary reason why tenants quit: maintenance issues. In allowing tenants to make requests for service with no the approval of their landlord as covered, the appliances and systems can be repaired promptly, which means there is less opportunity for negative reviews from unhappy tenants. Home warranties give landlords an affordable and effective solution to repair rental properties.

4. Reduces the time and effort involved in finding a contractor

A home warranty could be an efficient way to find contractors. Instead of having to look on the internet to find a reliable contractor in the nick of time, landlords can file a claim through their home warranty company. They will send someone to their rental property to address the issue as fast as possible. This is a lot easier than having to reach out to several contractors to find the best contractor.

Property managers however they can cut down on time and hassle by bringing a trusted vendor they already know to a managed home. They know the cost, work schedule and the history of the vendor. This means that they don't have to do a lot of research before selecting the best contractor to do the job. In addition, contractors who have been properly trained are more likely be kind and ethical to tenants. This is important to ensure that tenants are satisfied.

Furthermore, getting assistance from a home warranty provider could take longer than anticipated, sometimes taking a few days. This can lead to unhappy tenants who expect their repairs to be dealt with quickly. This can cause frustration. Property managers act as intermediaries between the tenants, the home warranty provider, and property owners.

Overall, using a home warranty for rental properties is beneficial because it will save the time and effort of searching for an expert. Property managers can suggest reliable vendors to manage their the homes. Homeowners can submit a claim to their warranty company to have the problem resolved promptly.

5. Ability to budget repairs

Using a home warranty to help with repairs and replacements to appliances and mechanical systems at home can help budget operating expenses much easier for rental property owners. A home warranty plan helps in making repairs more predictable, making tenants content and improving the financial results. The home warranty is advantageous as it is a one-stop source for all maintenance and repair needs. It can also reduce the requirement to exchange money during service calls. Furthermore the home warranty can help lower the owner's annual expenses by covering all or a large portion of the costs of fixing and replacing old or damaged appliances and systems.

6. Additional protection from landlord liability

A landlord's home warranty protects against landlord liability. It provides skilled repairs to equipment and systems that are failing because of normal wear and tear or old age. This helps reduce the risk of lawsuits for hability from tenants, as the repair and replacement of the systems and appliances are completed quickly. Repairs covered by the warranty reduce the need to obtain landlord approval as well as resolve disputes. This also decreases the liability of landlords. In addition, having a homeowner's warranty may act as an additional protection against financial loss because it's tax-deductible, allowing you to reduce rental costs.

7. You can choose from different warranty companies.

It's not easy to select a home warranty service for rental homes. You must consider costs and reputation in the industry, customer service, as well as other features. We suggest considering the various plans for service, add-ons, depth of coverage plans, cost of plan, the reputation of the company, its customer service infrastructure, and other features when selecting the right home warranty company. Also, consider the possibility to select your own contractor, upgrade your coverage plan, change your policy to a different owner, and cover roof leaks, top-of-the-line appliance brands, ceiling and exhaust fans, and faucets and fixtures.

Based on our findings, plan coverage is the one that should be considered most important and customer service should be the second most significant factor. Reputation in the industry, availability of plans, and additional features should be rated equally as well as price. Price should not be the primary basis for choosing a home warranty provider to suit your needs.

For instance, if your rental features a saltwater swimming pool, pro-series appliances, or a reverse osmosis device, Liberty Home Guard has a collection of additional features that might interest you. If you're not available to attend to repairs within the standard 30-day guarantee on workmanship, AFC Home Club offers the option of a plan-length warranty that can give you additional protection. HomeServe special plans could be the best option for those most concerned about their rental property's electric lines as well as American Home Shield may be the ideal choice for those looking to choose a home warranty provider with more coverage limits.

We recommend seeking quotes from at least three companies for home warranties and reviewing the contract carefully to make sure you are aware of any restrictions or exclusions. This will allow you to make an informed decision and find the best warranty for your home rental property.

8. Possibility to avail discounts and incentives

Using a home warranty plan for rental properties can help save money in two ways. They provide a cost-effective and inexpensive method to repair important appliances in the home when they fail. This could help landlords save cash on repairs that are routinely required. Another advantage is that the premium and service fees associated with the home warranty can be included on tax returns as an operating expense, subject to the registration of the landlord. This will lower their income overall and reduce tax burden.

9. Ability to send and track repair claims online

Renters will find their home warranty plans very beneficial as they help repair their property. If a covered product fails or breaks and needs to be repaired, landlords must submit an claim with their warranty company. The company will send an expert to your rental property to resolve the issue as fast as is possible. This can save landlords time and effort finding a reliable contractor who can be reached on short notice. By providing expedited service and ease of use Home warranty plans can help landlords ensure that their rental property is looked after quickly and effectively.

10. Greater tenant satisfaction

Using the HomePRO Warranty can provide many benefits to tenants in terms of customer service and satisfaction. HomePRO Warranty helps to reduce the number of service calls since tenants can submit requests directly, without having to wait for the landlord to approve the request. This can improve the relationship between landlord and tenant. Additionally, HomePRO Warranty eliminates the requirement for landlords to keep up with multiple vendorssince the warranty will cover repairs and replacements for various appliances and systems. Tenants can rest assured they will receive speedy and effective service. A house warranty, which could increase the property's rental price, can be a great opportunity for landlords to earn more money each month.