Obtain the very best of Both Worlds: Property Management Service Warranty for Landlords thumbnail

Obtain the very best of Both Worlds: Property Management Service Warranty for Landlords

Published Aug 07, 22
8 min read

What is a home warranty?

Home warranties are service contracts which cover the repair or replacement of the appliances and systems in your home in the event of failure due to normal wear and wear and tear. Home warranties are not like home insurance which covers your home's structure against natural disasters or theft and damage, instead they ensure the security of your home's systems as well as appliances. All types of housing are suitable to be covered by warranty for homes. They can help reduce the costs of repairs or replacements, and can be affordable for landlords both new and old. The service call cost is an expense that is due to the home warranty provider every time a claim is put into. Most providers do cover older homes, but certain ones do not cover home items with existing conditions.

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

1. Protection against high repair costs

A home warranty can be used to shield rentals from expensive repair costs. It provides fast service, convenience, and zero service charges. This cuts down on time and money that is spent on repair work and also provides financial protection from unplanned repairs and replacements. Regular maintenance coverage helps to improve the retention of tenants and clients. Tenants are able to request services without the need for approval from landlords. Covered appliances and systems are also fixed swiftly, which lowers the possibility of having negative reviews. This can help landlords save money and charge more for rent, thus putting more money in their pockets.

2. Common household appliances are covered

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

3. Relax knowing that repairs will be completed

Making repairs through the warranty of a home for rental properties provides landlords with a myriad of benefits. By covering repairs, maintenance appointments and repairs, landlords are able to be protected from having to shell out cash on demand whenever something goes wrong. A home warranty policy makes it easier for all affected to fix their home by sending an claim to the warranty company who will then send an individual to repair the issue at their rental property. Property management companies will experience an improvement in third-party contractor invoices as well as insurance expenses due to the fact that a lot of repairs and replacements can be completed quickly. Having a home warranty for rental properties can help to increase client and tenant retention by addressing the most common reason why tenants move out: maintenance issues. Tenants can seek assistance from their landlords and not need to be approved. This permits them to fix systems and appliances quickly. It also reduces the chance of tenants complaining about it. Home warranties offer landlords a cost-effective and efficient solution to repair rental properties.

4. It reduces time as well as making it easy to locate a contractor.

A home warranty that covers rental properties can help to reduce the time and effort when it comes to finding the right contractor. Rather than having to go out and find a reputable contractor on short notice, a landlord can simply make a claim with their home warranty provider , and they will send someone to their rental property to address the issue as soon as possible. This is a lot 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 have already worked with to manage a home. They know the prices, the work, and history of the vendor. This means that they don't have to do a lot of research before finding the right contractor for the task. 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 takes some time to receive service from a home warranty provider. Tenants might be unhappy if they are not satisfied with the speed with the time repairs are made. This adds to the discontent. Property managers act as an intermediary between tenants, the home warranty company, and property owners.

Overall, using a home warranty on rental properties can be beneficial as it can save time and trouble of finding an expert. Property managers can assign trusted contractors they have already worked with to managed homes, while homeowners can submit an claim to their home warranty company and have the issue resolved in a short time.

5. The ability to budget repairs

Using a home warranty to cover the costs of repairs and replacements to home mechanical systems and appliances can help budget operating expenses easier for property owners who own rental properties. The plan for home warranties makes repairs more predictable and helps tenants be happier. It also boosts the bottom line. It also offers more convenience, as it provides a one stop shop for all home maintenance repairs and replacement requirements, and not having to swap money on service calls. A home warranty can cut down the owner's annual costs by covering the total cost of replacing or repairing broken appliances or systems.

6. Additional protection from landlord liability

A home warranty for landlords can help protect them from landlord liability by providing quick, professional repairs of appliances and systems that break due to wear and wear and tear. Tenants are less likely to claim hability from landlords because repairs and replacements for appliances and systems can be completed quickly. Repairs covered by the warranty also decrease the requirement for approval from landlords and disputes to be resolved as well as reducing the chance of liability for landlords. Furthermore, having a home warranty in place may serve as an additional protection against financial loss, as it qualifies as tax-deductible and can help offset rental expenses.

7. The ability to select between various warranty providers

The selection of a warranty company for your home for a rental home is a difficult decision. It's important to consider the choices for coverage, the cost and reputation of the company, as well as customer support, and other features. We recommend looking at 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. Also, pay attention to the ability to select your own contractor, increase your coverage package and transfer your plan to a different owner, and protect your roof from leaks, top-of-the-line appliances, ceiling and exhaust fans, and fixtures and faucets.

Based on our research, coverage of plans will be the main factor, with customer support as the second most significant factor. Reputation in the industry, availability of plans and other features must be rated equally as well as price. Price is not the main factor in choosing a home warranty provider to suit your needs.

Liberty Home Guard offers a assortment of additional options to meet your requirements, such as an saltwater pool reverse osmosis system and pro-series appliances. AFC Home Club provides additional assurance if you're not able to make repairs within the timeframe of the 30-day workmanship warranty. HomeServe Specialized plans are an ideal option for those who are most concerned about their rental's utilities as well as American Home Shield may be the most suitable option for those looking to choose an insurance provider for home repairs that has higher coverage caps.

In the end, we suggest requesting an estimate from at three providers for home warranties and thoroughly reviewing the terms of the plan to make sure you're aware of any limitations or exclusions in the policies. This will help you make informed decisions and help you select the best home warranty company for the rental properties you own.

8. The ability to benefit from discounts and incentives

A home warranty plan for rental properties could help save money by two methods. They provide a cost-effective and affordable method of fixing important appliances in the home when they fail. This could save landlords money on regular repairs. The second advantage is that the cost of premiums and service charges of the home warranty plan may be included on tax returns as operating expenses, depending on the registration of the landlord. This can lower their income overall and reduce tax burden.

9. Ability to submit and track repair claims online

Renters can find home warranty plans extremely helpful as they help fix their home. Landlords need to submit a claim with their warranty provider if an item covered by warranty malfunctions or breaks. 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 reliable contractor who is available on short notice. Home warranty plans allow owners to be sure the rental property they lease is properly taken care of through prompt service and convenience.

10. Greater tenant satisfaction

Tenants will benefit of a HomePRO Warranty, such as improved service and customer 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 relationships between tenants and landlords. In addition, HomePRO Warranty eliminates the need for landlords to have to maintain a relationship with several vendorssince the warranty covers repairs and replacements for various appliances and systems. Tenants can rest assured that they will receive speedy and effective service. A house warranty, which may raise the rental value of the home and is a good option for landlords who want to earn more every month.