Purchase Professional Building Monitoring Guarantee Solutions to Maintain Your Home in Top Forming

Published Feb 24, 23
8 min read

What is an insurance policy for homes?

A home warranty is a service agreement that will pay for the cost of fixing or replacing your home's system and appliances when they fail because of normal wear and tear. They are not a substitute for home insurance that protects your home from damage caused by theft or natural catastrophes. They are designed to protect your home's appliances and systems. Home warranties are available for all kinds of homes and are able to lower the cost of repairs and replacements, making them perfect for both current and new landlords. The service fee is an amount that is paid to the home warranty provider per claim. While most providers provide coverage for older homes, a few might not be able to cover items that are in preexisting conditions.

What are the benefits of having a home warranty in order for rental properties?

1. Protection against high repair costs

A home warranty that covers rental properties can protect against high repair costs by offering speedy service, convenience of one-stop shop and with no cost for service. This cuts down on cost and time used on repairs and also provides financial protection from unexpected repairs and replacements. Regular maintenance can help improve the retention of tenants and clients. Tenants are able to request services without requiring approval from the landlord. Covered appliances and systems are also repaired quickly, which reduces the chance of negative reviews. This can help landlords save money and charge higher rents, making more money for their pockets.

2. Protection for household appliances that are commonplace

What types of appliances are covered under the home warranty in rental properties? [Expanded List] Refrigerators and dishwashers, dryers for clothes and clothes washers; trash compactors; ranges/ cooktopsand ovens, built-in microwave ovens with built-in food centers heating systems; air conditioning; electrical systems, water heaters 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 be sure that the repairs will be completed

Repairs made under a home warranty for rental properties provides landlords with numerous advantages. By covering repairs, maintenance appointments and replacements, landlords can be protected from having to pay out money when something goes wrong. Additionally, a home warranty plan makes the home repair procedure for all involved by submitting a claim to the warranty company. The provider then sends someone to their rental property to address the issue. Additionally, since the majority of repairs and replacements are covered and resolved quickly Property management companies will see a decrease in charges for contractors from third parties as well as insurance costs. The home warranty offered for rental properties also helps to improve tenant and client retention by dealing with the number one reason tenants move out: maintenance issues. Tenants can request service from their landlords and not need to get approval. This lets them repair their appliances and systems swiftly. This also decreases the chance of tenants complaining about it. Home warranties offer landlords the most cost-effective and efficient option to repair rental properties.

4. It reduces time and makes it easy to locate contractors.

A home warranty can be a time-saver when searching for an expert contractor. Instead of having to head out and find an experienced contractor with a good reputation on very short notice, the landlord can simply make a claim with their home warranty company and they will send an individual to the rental property to resolve the issue as soon as is possible. This is much simpler than having to reach out to numerous contractors to find the right contractor.

Property managers, on the other hand, can save time and hassle by bringing a reliable vendor they already know to manage a home. They know the prices, workmanship and how the vendor has conducted themselves over the years. It is no longer necessary to spend time searching for the right contractor. Furthermore, trained vendors tend to be more honest and respectful to tenants which is essential for tenant satisfaction.

Additionally, getting service from a home warranty provider could take longer than anticipated, sometimes taking a few days. Tenants might be unhappy if they aren't satisfied with the speed with which repairs are completed. This adds to the discontent. Property managers act as an intermediary between tenants, the home warranty company, and property owners.

A home warranty can be a great option to cut down on time and avoid the expense of hiring contractors. Property managers can send trusted contractors they have already worked with to homes they manage, while homeowners can submit a claim to their home warranty company and get the issue fixed in no time.

5. Budget for repairs

A home warranty that can help with repairs and replacements to appliances and mechanical systems at home can make budgeting for operating costs easier for property owners who own rental properties. A home warranty can help to make repairs more predictable, keeping tenants happy and increasing the overall bottom line. It also provides more convenience, as it provides an one-stop shop for all maintenance and replacement requirements, as well as eliminating the need to change money during service calls. A home warranty can reduce the annual expenses of the homeowner by covering the entire repair or replacement costs of malfunctioning appliances or systems.

6. Added protection against landlord liability

A home warranty for landlords safeguards landlords from liability. It covers expert repairs for appliances and systems that are failing due to normal wear and tear or age. Tenants are less likely claim hability from landlords because repairs and replacements for appliances and systems can be completed quickly. The covered repairs can also lessen the requirement for approval from landlords and disputes to be resolved, which further reduces the possibility of landlord liability. In addition, having a homeowner's warranty may act as an additional level of financial security, as it qualifies as tax-deductible and can help offset rental expenses.

7. The ability to select between various warranty providers

Selecting a provider for a home warranty for a rental property isn't an easy task. It's important to consider the plans, costs, industry reputation, customer support, and other features. We suggest considering the various plans for service, extensions, coverage depth the plan's cost, its the reputation of the company, its customer service infrastructure, and additional options when choosing a provider for your home warranty. Also, be aware of the option to select the contractor of your choice, increase your coverage plan, transfer your plan to another owner, and also cover roof leaks, premium appliances ceiling and exhaust fans, and fixtures and faucets.

Based on our research, plan coverage will be the main factor in the customer support department as the second most significant factor. The industry reputation as well as plan availability and other features should all be considered equally. The price range shouldn't be the sole factor in choosing a provider of home warranties that can meet your needs.

For example, if your rental property features a saltwater swimming pool, pro-series appliances, or reverse osmosis system, Liberty Home Guard has a suite of add-ons that may interest you. If you're not available to attend to repairs within the normal 30 days of the workmanship guarantee, AFC Home Club offers an extended-plan guarantee that could give you additional security. HomeServe special plans could be an ideal option for those most concerned about their rental's utilities, and American Home Shield may be the best option for those who prefer a home warranty company with higher coverage caps.

Ultimately, we recommend requesting a quote from at three providers for home warranties and carefully reading the terms of the plan to be sure that you're aware of all limitations and exclusions from the policies. Doing so will help you make an informed choice and find the best warranty for your home rental property.

8. You can benefit from discounts and other benefits

A home warranty plan could be an excellent way to reduce the cost of rental homes. In the first place, these plans give you a more convenient and low-cost solution for fixing major household appliances and systems since they will eventually break. This can save landlords cash on regular repairs. The other benefit is that the cost of premiums and service charges associated with the home warranty may be claimed on a tax return as an operating expense, dependent on the registration of the landlord. This could lower their income overall and reduce tax burden.

9. Online submission and monitoring of repair claims

Warranty plans for home owners can be extremely beneficial for rental properties, by simplifying the repair process. The landlord only has to file claims with their warranty company if a covered item malfunctions or breaks. The warranty provider will send an expert to the rental property to address the issue as soon as is possible, saving landlords the hassle of searching for a reputable contractor with a the shortest notice. Home warranty plans allow landlords to make sure the rental property they lease is taken care of with quick service and convenience.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from the HomePRO Warranty, which includes improved service and customer satisfaction. HomePRO Warranty helps to reduce the number of service calls since tenants can submit requests directly, without waiting for the landlord's approval them. This improves the relationships between tenants and landlords. 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. As a result tenants will have the assurance that their needs will be taken care of promptly and efficiently. Lastly having a home warranty is also a way in increasing the rent of the property, allowing landlords to earn more every month.