The Ultimate Defense for Your Rental Home: Residential Property Management Guarantee

Published Feb 21, 23
8 min read

What is an insurance policy for homes?

Home warranties are contracts which cover the cost of replacing or repairing your home's appliances and systems in the event of failure due to normal wear and tear. These warranties are not like home insurance , which shields your home's structure against natural disasters or theft, but instead safeguard your home's systems and appliances. They are available for all kinds of homes and can be used to minimize the costs of repairs and replacements, making them perfect for both current and new landlords. The cost of service is the amount charged to the home warranty company for each claim. The majority of providers offer coverage for older homes, however certain providers don't cover items in the home with preexisting conditions.

What are the benefits 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 the high cost of repairs by providing expedited service, the convenience of a one stop shop, and no service charge. This can reduce the amount of time and expense used on repairs and offers financial protection against unplanned repairs and replacements. Additionally, the protection of regular maintenance can increase the likelihood of tenant and client retention, since tenants can solicit service without the need for approval from landlords and protected appliances and systems can be repaired quickly, reducing the chance of having negative reviews. All of this helps landlords save money while charging higher rent, putting more money in their pockets.

2. Coverage for common household appliances

What appliances are covered by a home warranty for rental properties and what are they covered for? (Expanded List) Refrigerators and dishwashers, dryers for clothes and washers for clothes; trash compactors; cooktops/ ovens; built-in microwave ovens; built-in food centers; heating systems; air conditioning; electrical systems, water heaters garbage disposals; central vacuums, smoke detectors, smoke alarms; plumbing systems. Doorbells and ceiling fans, exhaust fans, septic tanks, sump pumps spas and garage door openers.

3. You can rest assured that repairs will be completed

Repairs made under the warranty of a home for rental properties can provide landlords with many advantages. With the coverage of repairs, maintenance, and repairs, landlords are able to save themselves from having shell out cash at any time something goes wrong. In addition, 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 fix the issue. Property management companies will experience an improvement in the amount of invoices from third-party contractors and insurance expenses due to the fact that most repairs and replacements are done quickly. The home warranty offered for rental homes can help clients and tenants keep their clients by resolving the most common reason for tenants to quit: maintenance issues. When tenants are able to seek service without the approval of their landlord, covered appliances and systems are repaired swiftly, which reduces the chances of receiving negative reviews from unhappy tenants. Overall homeowners' warranties provide landlords with an affordable and effective solution for rental property repairs.

4. It saves time and effort of hiring a contractor.

A home warranty can be a time-saver when searching for an expert contractor. Rather than having to go out to find an experienced contractor with a good reputation on very short notice, the landlord simply needs to submit a claim to their home warranty company and they will send someone to their rental home to resolve the problem as quickly as possible. This can be much easier than having to contact multiple contractors to find the right one to complete the task.

Property managers however, can save time and effort by bringing a reliable vendor they have already worked with to manage a home. They know the pricing, work and background of the vendor. It is no longer necessary to spend time searching for the right contractor. Additionally, vendors who have been properly trained are more likely to be friendly and ethical to tenants. This is essential for tenant satisfaction.

Sometimes, it may take some time to receive service from a company that offers home warranties. This can result in dissatisfied tenants who expect that their issues will be completed promptly. Property managers must act as a mediator between tenants and the home warranty company, which adds to the hassle.

In the end, a home warranty for rental properties can be beneficial because it will save time and trouble of finding an expert. Property managers can use trusted vendors they already know to manage homes, and homeowners can make an inquiry to their warranty company and get the issue fixed within a matter of minutes.

5. Budget for repairs

Utilizing a home warranty plan to help with repairs and replacements of home mechanical systems and appliances can help budget operating expenses easier for rental property owners. A home warranty program helps in making repairs easier to predict, keeping tenants happy and increasing the 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 necessity to exchange money at service calls. A home warranty can reduce the cost of ownership by covering the full repair or replacement costs of broken appliances or systems.

6. Additional protection from landlord liability

The use of a home warranty by landlords protects them from the risk of liability for landlords by offering prompt, professional repairs for systems and appliances that fail due to wear and wear and tear. Tenants are less likely to sue landlords for hability because repairs and replacements to appliances and systems are done promptly. Repairs covered by the warranty reduce the need to seek approval from landlords as well as resolve disputes. This lowers the risk of liability for landlords. Furthermore, having a home warranty may act as an additional protection against financial loss since it is tax-deductible, helping to reduce rental costs.

7. You can choose among a variety of warranty providers

The selection of a warranty company for your home for a rental home can be a tricky endeavor. You should consider cost 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 the plan's cost, its industry reputation, customer support infrastructure, and additional options when choosing a provider for your home warranty. In addition, be aware of the option to choose the contractor of your choice, upgrade your coverage plan, transfer your plan to a different owner, and also cover roof leaks, top-of-the-line appliance brands exhaust and ceiling fans and faucets and fixtures.

Our research has shown that plan coverage is the most important, followed by customer service. Reputation in the industry, availability of plans as well as additional features should be evaluated equally, and price range is not the main base for selecting the right home warranty provider for your home's needs.

Liberty Home Guard offers a range of add-ons to suit your requirements, such as saltwater pools, reverse osmosis systems, and appliances from the pro-series. AFC Home Club provides additional security in the event that you're unable to fix the problem within the 30 day workmanship guarantee. HomeServe specialized plans may be the best option for those who are most concerned about their rental property's utility lines as well as American Home Shield may be the best option for those looking to choose a home warranty company with more coverage limits.

In the end, we suggest requesting the quotes of at three providers for home warranties and carefully reviewing the terms of the plan to make sure you're aware of any limitations or exclusions from the policies. By doing this, you can make an informed choice and find the best home warranty provider for your rental property.

8. The ability to benefit from discounts and incentives

Using a home warranty plan for rental properties can help reduce costs by two methods. These plans offer a convenient and inexpensive method to repair major appliances that fail. This could save landlords cash on regular repairs. Secondly, depending on how the landlord is registered, the total premium and service charges from the home warranty plan can be included as operating expenses on a tax return which will reduce the total amount of income they earn and tax burden.

9. Ability to submit and track repair claims online

Renters will find their home warranty plans very beneficial as they help repair their home. When a covered item is damaged or fails the landlords only have to make an insurance claim with their warranty company. The warranty provider will dispatch a technician to the rental property to address the problem as quickly as they can. This saves landlords time and energy in finding a reliable contractor who can be reached on very short notice. With their speedy service and ease of use, home warranty plans help landlords ensure that their rental property is looked after quickly and effectively.

10. Greater tenant satisfaction

Using a HomePRO Warranty can bring many advantages for tenants both with regards to service and satisfaction. HomePRO Warranty helps to reduce the number of service calls since tenants can make requests directly, without waiting for the landlord to approve the request. This improves the relationship between landlord and tenant. HomePRO Warranty also eliminates the requirement to maintain a connection with multiple suppliers. The warranty will cover repairs and replacements for various systems and appliances. As a result tenants will have the peace of mind knowing that their needs will be taken care of promptly and efficiently. In addition, having a home warranty is also a way in increasing the rent of the property, allowing landlords to make more money each month.