The Top Advantages of Property Management Service Warranty for Real Estate Investors

Published Aug 16, 22
8 min read

What is a home warranty?

Home warranties are service agreements that provide for the repair or replacement of your home's appliances and systems when they fail due to normal wear and wear and. Home warranties are not like home insurance which covers your home's structure from natural disasters and theft however they do protect your home's systems and appliances. All types of housing are qualified for warranty for homes. They can reduce the costs of repairs or replacements and are feasible for landlords of both types, new and old. Service call fees are an amount which is paid to the home warranty provider every time a claim gets put into. Most providers do offer coverage for older homes, however certain providers don't cover items in the home with preexisting conditions.

What are the advantages of using a home warranty to rent properties?

1. Protection against high repair costs

Using a home warranty for rental properties can help protect against costly repairs by providing expedited service, the convenience of one stop shop, and there is no charge for service. This reduces the amount of time and expense used on repairs and offers financial protection against unplanned repairs and replacements. In addition, the insurance coverage for regular maintenance can increase the likelihood of tenant and client retention, since tenants can request service without landlord approval and the covered appliances and systems are repaired swiftly, reducing the risk of negative reviews. This allows landlords to charge lower rent, and also save money.

2. Protection for household appliances that are commonplace

What types of appliances are covered under a home warranty for rental properties? (Extended list) Refrigerators, dishwashers dryers, clothes washers, trash compactors, cooktops and rangesand ovens, microwaves with built-in ovens and built-in food centers heating systems water heaters, air conditioning electrical systems, garbage disposals, 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 repairs will be completed

Having repairs made through the warranty of a home for rental properties offers landlords a myriad of benefits. With the coverage of repairs, maintenance appointments and even replacements, landlords save themselves from having shell out cash at any time there is a problem. A home warranty policy will make it simpler for everyone affected to fix their house by sending an inquiry to the warranty provider who will then send an individual to address the issue at the rental property. Property management companies will experience less third-party contractor invoices and insurance costs due to the fact that a lot of repairs and replacements can be done quickly. A home warranty for rental properties is also a way to improve tenant and client retention by dealing with the most common reason why tenants move out: maintenance issues. Tenants can request service from their landlords and not need to be approved. This lets them repair their systems and appliances quickly. It also reduces the likelihood of tenants complaining about it. Home warranties give landlords a cost-effective and efficient solution to repair rental properties.

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

A home warranty could be a time-saver when searching for a contractor. Instead of having to look on the internet for a reliable contractor in a hurry, landlords can submit a claim at their home warranty provider. They will dispatch someone to their rental property to address the issue as quickly as possible. This is much simpler than having to call multiple contractors to locate the most suitable contractor.

Property managers on the other hand they can cut down on time and effort by bringing a reliable vendor they already know to a managed home. They know the prices as well as the quality of work and how the vendor has conducted themselves over the years. This eliminates the need to do a lot of research before selecting the best contractor to do the job. In addition, contractors who have been trained are more likely be kind and ethical towards tenants. This is essential to ensure that tenants are satisfied.

Sometimes, it can take some time to receive help from a company that offers home warranties. Tenants may be dissatisfied when they are not satisfied by the speed at which repairs are completed. This causes anger. Property managers serve as a middleman between tenants, the homeowner warranty company, and the property owners.

A home warranty is an excellent option to cut down on time and avoid the expense of hiring an expert contractor. Property managers can refer reliable contractors to manage the homes. Homeowners can submit a claim to their warranty company to have the problem resolved quickly.

5. Ability to budget repairs

Renters can save money by utilizing a home warranty to cover repairs and replacements for their home appliances and mechanical systems. The plan for home warranties makes repairs more predictable and makes tenants happier. It also improves the bottom line. The home warranty plan is convenient as it is a one-stop provider for all household maintenance and replacement requirements. It is also a way to not change money when making service calls. A home warranty could reduce the annual expenses of the homeowner by covering the entire repair or replacement costs of broken appliances or systems.

6. Additional protection from landlord liability

A landlord's home warranty safeguards landlords from liability. It offers expert repairs for equipment and systems that have failed due to wear and tear or aging. This helps reduce the risk of lawsuits arising from hability claims by tenants as repairs and replacement of the systems and appliances are taken care of promptly. The covered repairs make it less necessary to seek approval from landlords and can also settle disputes. This decreases the liability of landlords. A home warranty may provide additional financial protection as it's tax-deductible, and aids to offset rental costs.

7. You can choose from a variety of warranty providers

Choosing a home warranty provider for a rental home isn't an easy task. It's important to consider the choices for coverage, the cost, industry reputation, customer support and any additional features. We suggest considering the available service plans and additional coverage options, the depth of coverage the plan's cost, its industry reputation, customer support infrastructure, and additional features when selecting a provider for your home warranty. Additionally, you should also be aware of the option to select the contractor of your choice, change your coverage plan, change your policy to a different owner, and cover roof leaks, high-end appliance brands ceiling and exhaust fans, and fixtures and faucets.

Based on our findings, plan coverage is the one that should be considered most important, with customer support as the second most significant factor. The industry reputation as well as plan availability and other features should be evaluated equally. Price should not be the main basis for choosing a provider of home warranties that can meet your needs.

If, for instance, the rental property you are renting has a saltwater pool, pro-series appliances, or reverse osmosis system Liberty Home Guard has a collection of additional features that might interest you. If you're not available to follow up on repairs within the standard 30-day workmanship guarantee period, AFC Home Club offers the option of a plan-length warranty that can give you additional protection. HomeServe specialized plans may be the best option for those who are most concerned about their rental property's utilities, and American Home Shield may be the most suitable option for those who'd rather choose an insurance provider for home repairs that has more coverage limits.

In the end, we suggest requesting an estimate from at least three home warranty providers and thoroughly reviewing the terms of the plan to make sure you're aware of all limitations and exclusions that are in the policy. This will enable you to make educated decisions and assist you select the best home warranty company for your rental properties.

8. Possibility to avail discounts and other incentives

A home warranty program can be an excellent method to save money on rental properties. First, these plans can give you a more convenient and low-cost solution for fixing major appliances and systems in the home because they are likely to break. This could help landlords save money on regular repairs. The second benefit is that the service and premium fees from the home warranty plan may be claimed on a tax return as an operating expense depending on the landlord's registration. This will decrease their total income and tax burden.

9. Online submission and monitoring of repair claims

Renters can find home warranty plans very beneficial as they make it easier to repair their property. Landlords need to submit an claim with their warranty company if an item covered by warranty malfunctions or fails to function. The company will send technicians to the rental property to address the issue as fast as possible. This will save landlords time and energy in finding a trustworthy contractor who is available on the shortest notice. With their speedy service and ease of use Home warranty plans can help landlords make sure their rental property is taken care of quickly and effectively.

10. Greater tenant satisfaction

The use of a HomePRO Warranty can provide many benefits for tenants, both in terms of customer service and satisfaction. The HomePRO Warranty reduces service calls because tenants are able to submit demands directly, without waiting for the approval of the landlord. This helps to improve the relationship between landlords and tenant. Additionally, HomePRO Warranty eliminates the need for landlords to have to keep up with multiple vendorssince the warranty covers repairs and replacements for different appliances and systems. As a result tenants will have the security of knowing that their requirements are met promptly and efficiently. A home warranty, which may boost the rent of the house as well, is a fantastic way for landlords to make more money each month.