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Secure Your Financial Investment with Trusted Home Management Guarantee Providers

Published Jan 10, 23
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 aren't the same as insurance for your home, which protects your home's structure from natural disasters and burglaries and damage, instead they ensure the security of your home's systems as well as appliances. All types of housing are eligible for warranty for homes. They can help reduce the costs of repairs or replacements, and can be feasible for landlords of both types, new as well as old. A service call fee is a fee that is paid to the home warranty company each time a claim is made into. Although most companies provide coverage for older homes, a few might not be able to cover items that are in existing conditions.

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

1. Protection against high repair costs

A home warranty can be used to protect rental properties from high repair expenses. It gives quick service, convenience, and zero service charges. This reduces the amount of time and expense needed to repair your home and provide financial protection for repairs and replacements that are unexpected. Regular maintenance coverage helps to increase client and tenant retention. Tenants are able to request services without requiring approval from the landlord. Covered appliances and systems are also repaired quickly, which reduces the possibility of having negative reviews. This can allow landlords to charge lower rent, and also save money.

2. Common household appliances are covered

What kinds of appliances are covered under an insurance policy for rental properties? [Expanded list] Refrigerators, dishwashers and clothes dryers, washers for clothes, trash compactors, cooktops and rangesand ovens, microwaves with built-in ovens and built-in food centers heating systems, air conditioning, water heaters, electrical systems, garbage disposals smoke detectors, central vacuums doorbells, plumbing systems exhaust and ceiling fans, sump pumps, septic tanks spa, pool as well as garage door openers.

3. Peace of mind knowing repairs are being made

Repairs made under the warranty of a home for rental properties offers landlords many benefits. Landlords do not have to pay cash on demand for maintenance and repairs. A home warranty plan will make it simpler for everyone affected to fix their house by sending an claim to the warranty provider , who will then send a technician to fix the problem at their rental property. Property management companies will experience an improvement in third-party contractor invoices as well as insurance costs because of the fact that most repairs and replacements can be completed in a short time. The home warranty offered for rental homes helps clients and tenants keep their clients by solving the main reason that tenants abandon their homes: maintenance issues. Tenants can request service from their landlords and not need to be approved. This allows them to repair systems and appliances quickly. Also, it reduces the possibility of tenants complaining about it. Overall homeowners' warranties provide landlords with a cost-effective and efficient solution to rental property repairs.

4. It saves time and effort of the search for a contractor.

A home warranty can be an efficient way to find a contractor. Rather than having to go out to find a reliable contractor with very short notice, the landlord just needs to submit a claim to their home warranty provider , and they will dispatch someone to their rental property to resolve the issue as soon as they can. This can be much more efficient than needing to call multiple contractors to determine the most suitable one for the job.

Property managers can reduce time and hassle by sending an established vendor to handle a home. They are familiar with the cost, work schedule and history of the company. This means that they don't have to research and finding the right contractor for the task. Furthermore, contractors who have been properly trained are more likely be kind and ethical to tenants. This is essential for tenant satisfaction.

In addition, receiving service from a home warranty company could take longer than anticipated, sometimes taking a few days. Tenants might be unhappy if they are not satisfied with the speed at the time repairs are made. Property managers must act as a middleman between the tenants and the homeowner warranty company, adding to the stress.

A home warranty could be a great method to reduce time and eliminate the hassle of hiring contractors. Property managers can send trusted vendors they already know to manage homes, and homeowners can submit an claim to their warranty company and have the problem fixed in no time.

5. Budget for repairs

Renters can save money by using a home warranty to cover repairs and replacements of their appliances at home as well as mechanical equipment. A home warranty can help to make repairs more predictable, making tenants content and improving the bottom line. It also provides more convenience as it is an one-stop shop for all home maintenance repairs and replacement requirements, as well as eliminating the need to swap money on service calls. Additionally having a home warranty can help lower the owner's annual expenses by covering all or a large portion of the costs of fixing and replacing aging or malfunctioning equipment and systems.

6. Additional protection from liability of landlords

Using a home warranty for landlords helps protect against landlord liability through rapid, professional repairs to systems and appliances that fail due to age or normal wear and tear. This reduces the chance of lawsuits for hability from tenants since repairs and replacement of appliances and systems are handled quickly. The covered repairs make it less necessary to obtain landlord approval and can also settle disputes. This further decreases the liability of landlords. A home warranty can offer additional financial protection since it's tax-deductible, and aids to offset rental costs.

7. You can choose from a variety of warranty providers

Selecting a provider for a home warranty for a rental property is a difficult decision. You should consider cost as well as the reputation of the company, its customer service, and many other aspects. When selecting a provider for your home warranty, we recommend considering the plans for service and add-ons available, cost, reputation in the industry and the customer support infrastructure, as well as other options. Also, pay attention to the ability to select your own contractor, increase your protection package, change your policy to a different owner, and cover roof leaks, top-of-the-line appliance brands ceiling and exhaust fans, and fixtures and faucets.

Based on our research, plan coverage should carry the most weight, with customer support as the second-most important factor. The reputation of the company, its availability, and additional features should be rated equally and the price shouldn't be the sole base for selecting the best home warranty company for your home's needs.

If, for instance, your rental property has a saltwater pool, pro-series appliances, or a reverse osmosis device, Liberty Home Guard has a suite of add-ons that may appeal to you. If you're not able to take care of repairs within the standard 30-day workmanship guarantee period, AFC Home Club offers a plan-length guarantee that may offer an additional level of protection. HomeServe Specialized plans are a good choice for those most worried about their rental's electric lines, and American Home Shield may be the best option for those who prefer a home warranty company with higher coverage caps.

We suggest seeking quotes from at least three home warranty companies , and reading through the terms carefully to make sure you are aware of any limitations or exclusions. This will help you make educated choices and help to select the most suitable home warranty company for your rental properties.

8. The ability to benefit from discounts and incentives

A home warranty plan could be a fantastic way to reduce the cost of rental homes. In the first place, these plans give you a more convenient and cost-effective solution to repair major appliances and systems in the home since they will eventually break. This can help landlords save cash on regular repairs. Another advantage is that the service and premium fees of the home warranty plan could 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 tracking of repair claims

Home warranty plans can be extremely beneficial for rental properties, by making repairs easier. Landlords need to submit claims with their warranty provider when the covered item fails or fails to function. The warranty provider will dispatch a technician to your rental property to fix the issue as fast as possible. This saves landlords time and effort in searching for a trustworthy contractor that is available on the shortest notice. Home warranty plans allow owners to be sure that their rental property is properly taken care of by providing prompt service and convenience.

10. Greater tenant satisfaction

Tenants can benefit from a variety of benefits of the HomePRO Warranty, such as improved service and customer satisfaction. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for the approval of the landlord. This helps improve the relationships between tenants and landlords. HomePRO Warranty also eliminates the necessity of maintaining a relationship with multiple vendors. The warranty will cover repairs and replacements for different systems and appliances. Tenants can rest assured that they will receive prompt and efficient service. In addition, having a home warranty can also help to boost the rent of the property, allowing landlords to make more money each month.