Residential Or Commercial Property Administration Service Warranty 101: Understanding the Conveniences

Published Jan 24, 23
8 min read

What is a warranty for your home?

A home warranty is a kind of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances if they fail due to normal wear and wear and tear. Home warranties are not the same as home insurance , which shields your home's structure against natural disasters or theft however they do safeguard your home's systems and appliances. Home warranties are offered to all types of dwellings and can help reduce the costs of repairs and replacements and are therefore ideal for both existing and new landlords. The service call cost is an amount that is due to the home warranty company each time a claim is made into. While most providers provide coverage for older homes, a few might not be able to cover items that are in existing conditions.

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

1. Protection against high repair costs

Using a home warranty for rental properties can guard against costly repairs by providing expedited service, the convenience of one-stop shop and there is no charge for service. This can reduce the time and money that is spent on repair work and also provides financial protection from unexpected repairs and replacements. Furthermore, the coverage of regular maintenance aids in increasing tenant and client retention, because tenants are able to make requests for service with no landlord approval and protected appliances and systems can be repaired quickly, reducing the chance of having negative reviews. All of this helps landlords save money and charge higher rent, making more money for their pockets.

2. Common household appliances covered

What are the appliances covered under a home warranty for rentals and what do they cover? [Expanded List] Refrigerators and dishwashers, clothes dryers and clothes washers; trash compactors; cooktopsor ovens; microwaves with built-in ovens and built-in food centres; HVAC systems, heating, electrical systems, water heaters garbage disposals; smoke detectors, central vacuums and smoke alarms; plumbing systems. Doorbells, ceiling fans, exhaust fans septic tanks, sump pumps spas, garage door openers.

3. Relax knowing that repairs will be completed

Making repairs through a home warranty for rental properties provides landlords with a myriad of advantages. Landlords do not have to pay cash on demand for maintenance and repairs. Furthermore, a home warranty program makes it easier to complete the home repairs process for everyone involved . sending a claim to the warranty company. The provider then sends someone to their rental property to fix the issue. In addition, since many repairs and replacements are addressed and solved quickly and efficiently, property management companies will see a decrease in charges for contractors from third parties as well as insurance costs. A home warranty for rental properties can help to improve tenant and client retention by addressing the primary reason that causes tenants to quit: maintenance problems. When tenants are able to request service without landlord approval as covered, the appliances and systems can be repaired promptly, which means there is less chances of receiving negative feedback from angry tenants. Home warranties give landlords a cost-effective and efficient solution for repairs to rental properties.

4. Saves time and hassle of the search for a contractor.

Utilizing a home warranty on rental properties can help save time and hassle when trying to find the right contractor. Rather than having to go out to find a reputable contractor on very short notice, the landlord can simply make a claim with their home warranty company and they will send someone to their rental home to address the problem as quickly as possible. This is much easier than having to reach out to several contractors to find the right contractor.

Property managers however they can cut down on time and effort by sending a trusted vendor they already know to a house they manage. They know the prices, the work, and background of the vendor. There is no need to look around for the best contractor. Furthermore, trained vendors are more likely to be ethical and considerate of tenants, which is crucial for tenant satisfaction.

Sometimes, it takes several days to get help from a home warranty company. This can result in dissatisfied tenants who expect that their issues will be dealt with quickly. This causes discontent. Property managers act as intermediaries between the tenants, the homeowner warranty company, and property owners.

Overall, using a home warranty on rental properties is beneficial as it can save time and trouble of finding contractors. Property managers can send trusted vendors they already know to managed homes, while homeowners can submit an inquiry to their home warranty company and have the issue resolved within a matter of minutes.

5. The ability to budget repairs

Utilizing a home warranty plan to cover the costs of repairs and replacements for home mechanical systems and appliances will make planning operating expenses much easier for rental property owners. The home warranty plan makes repairs more predictable and can help tenants feel more comfortable. It also improves the bottom line. Additionally, it provides greater convenience, as it provides a one stop shop for all household maintenance repairs and replacement requirements, as well as eliminating the necessity to swap money on service calls. Furthermore, having a home warranty could help reduce the annual cost of ownership by covering the majority or all of the costs of fixing and replacing malfunctioning or old appliances and systems.

6. Additional protection from liability of landlords

A landlord's home warranty safeguards landlords from liability. It offers professional repairs to equipment and systems that are failing because of normal wear and tear or aging. Tenants are less likely sue landlords for hability because repairs and replacements for appliances and systems are completed swiftly. Repairs covered by the warranty reduce the need to obtain landlord approval as well as resolve disputes. This further lowers the risk of liability for landlords. A home warranty can offer additional financial protection since it's tax-deductible, and aids in reducing rental costs.

7. You can choose from different warranty providers

Selecting a provider for a home warranty for a rental property is a difficult decision. It's important to consider the plans, costs, industry reputation, customer support system, and additional features. It is recommended to consider the various plans for service, extensions, coverage depth, plan cost, the reputation of the company, its customer service infrastructure, and other features when selecting a provider for your home warranty. You should also be aware of the possibility of choosing your own contractor, and then upgrade your coverage plan. Also, how easy to transfer your plan from one owner to another.

Based on our research, coverage of plans will be the main factor and customer service should be the second most significant factor. Industry reputation, plan availability, and additional features should be equally rated as well as price. Price is not the main basis for choosing the right home warranty provider to meet your home's requirements.

Liberty Home Guard offers a variety of accessories to meet your needs, such as an saltwater pool reverse osmosis system and appliances from the pro-series. AFC Home Club provides additional security in the event that you're unable to make repairs within the 30 day workmanship guarantee. HomeServe special plans could be a good choice for those who are most worried about their rental's utility lines, and American Home Shield may be the ideal choice for those who prefer an insurance provider for home repairs that has greater coverage limits.

We recommend that you request the quotes of at least three home warranty providers and carefully reading the plan terms to be sure that you're aware of any limitations or exclusions from the policies. This will allow you to make an informed decision and determine the most suitable home warranty provider for your rental property.

8. You can benefit from discounts and other offers

Using a home warranty plan for rental properties can help to save money by two methods. The plans provide a simple and affordable method of fixing important appliances in the home when they fail. This could help landlords save from having to pay for regular repairs. Secondly, depending on how a landlord is registered, the total premium and service charges from the home warranty plan could be claimed as operating expenses on a tax return and thus reduce their total income, and therefore their tax burden.

9. Ability to send and track repair claims online

Home warranty plans can be incredibly helpful for rental properties by simplifying the repair process. If a covered product is damaged or fails the landlords only need to submit an claim with their warranty provider. The provider will then send an expert to the rental home to resolve the issue as soon as they can, saving landlords the hassle of finding a reliable contractor with a the shortest notice. The Home Warranty plans permit landlords to make sure the rental property they lease is taken care of with prompt service and convenience.

10. Greater tenant satisfaction

Tenants can enjoy many benefits of the HomePRO Warranty, including improved service and customer satisfaction. The HomePRO Warranty reduces service calls since tenants can make request directly without having to wait for approval from the landlord. This enhances the relationship between tenants and landlords. HomePRO Warranty also eliminates the necessity of maintaining a relationship with multiple suppliers. The warranty includes repairs and replacements of various systems and appliances. Therefore, tenants can enjoy the assurance that their needs are met quickly and effectively. Lastly, having a home warranty can also help to boost the rent of the property, allowing landlords to earn more each month.