Optimize Your Rental Revenue with Dependable Home Management Guarantee Solutions

Published Mar 18, 22
8 min read

What is a home warranty?

Home warranties are service agreements that provide for the costs of replacing or fixing the appliances and systems in your home if they fail because of normal wear and wear and tear. Home warranties are not identical to home insurance , which shields your home's structure from natural disasters and theft, but instead safeguard your home's systems and appliances. All kinds of homes are suitable for home warranties. They are able to help lower the cost of repairs and replacements, and can be affordable for landlords new and old. The service call cost is an amount that is due to the home warranty provider each time a claim is made in. While most providers cover older homes, some might not be able to cover items that are in existing conditions.

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

1. Protection against high repair costs

A home warranty can be used to protect rental properties from costly repair costs. It gives quick service, convenience, and zero service charges. This reduces the cost and time spent on repair jobs and provides financial protection against repair and replacement costs that are unexpected. Additionally, the protection of regular maintenance aids in increasing the retention of clients and tenants, because tenants are able to request service without landlord approval and covered appliances and systems are repaired swiftly, reducing the possibility of negative reviews. This can allow landlords to charge less rent and save more.

2. Coverage for common household appliances

What kind of appliances are covered under an insurance policy for rental properties? Refrigerators, dishwashers, clothes dryers, clothes washers, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens, built-in food centers, heating systems, air conditioning, water heaters and electrical systems, garbage disposals central vacuums, smoke detectors, doorbells, plumbing systems exhaust and ceiling fans, sump pumps, septic tanks, spa, pool, 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 provides landlords with many advantages. Through covering repairs, maintenance, and repairs, landlords are able to save themselves from having shell out cash when there is a problem. A home warranty plan allows everyone involved to repair their property by submitting an claim to the warranty provider who will then send someone to fix the problem in their rental property. Property management companies will see a decrease in the amount of invoices from third-party contractors and insurance costs due to the fact that most repairs and replacements can be done quickly. A home warranty for rental properties will help clients and tenants retain their customers by addressing the most common reason for tenants to leave: maintenance problems. When tenants are able to seek service without permission from the landlord as covered, the appliances and systems are fixed swiftly, which reduces the chance of negative feedback from angry tenants. In the end, home warranties provide landlords with a cost effective and efficient solution for rental property repairs.

4. Reduces the time and effort involved in the search for a contractor.

Utilizing a home warranty on rental properties could save time and hassle in the search for the right contractor. Instead of having to go out and find a reputable contractor on an emergency basis, a landlord can simply submit a claim to their home warranty provider and they will dispatch someone to their rental property to address the issue as soon as they can. This is more efficient than having to contact multiple contractors to locate the best one to complete the task.

Property managers however they can cut down on time and stress by bringing a reliable vendor that they know to manage a home. They know the cost, work schedule and the history of the vendor. This eliminates the need to research and finding the right contractor to do the task. In addition, trained contractors are more likely to be trustworthy and respectful to tenants which is important for tenant satisfaction.

Furthermore, getting assistance from a home warranty company can take longer than expected, sometimes taking a few days. This can lead to unhappy tenants, who want that their issues will be dealt with quickly. This causes frustration. Property managers act as an intermediary between tenants, the homeowner warranty company, and the property owners.

Overall, having a home warranty for rental properties can be beneficial as it can save time and trouble of finding a contractor. Property managers can use trusted contractors they have already worked with to homes they manage, while homeowners can make a claim to their warranty company and get the issue fixed within a matter of minutes.

5. Budget for repairs

Renters are able to save money using the home warranty plan to cover repairs and replacements of their appliances at home as well as mechanical equipment. The warranty for homes ensures that repairs are more predictable and makes tenants happier. This also increases the bottom line. The home warranty is advantageous because it provides a single source for all maintenance and repair needs. It also eliminates the need to change money when making service calls. A home warranty can cut down the cost of ownership by covering the total repair or replacement costs of damaged appliances or systems.

6. Additional protection against landlord liability

A home warranty for landlords protects against landlord liability. It offers expert repairs for appliances and systems that have failed due to normal wear and tear or age. This reduces the chance of lawsuits for hability from tenants as repairs and replacement of the appliances and systems are completed quickly. Covered repairs reduce the need to seek approval from landlords, and also resolve disputes. This also reduces landlord liability. A home warranty could give additional financial security as it's tax-deductible, and aids to offset rental costs.

7. You can choose from different warranty companies.

It's not easy to choose a home warranty provider for rental properties. It is important to consider costs and reputation in the industry, customer service and other features. When selecting a home warranty company We recommend looking at the plans for service and add-ons available, cost, industry reputation and customer support infrastructure, as well as other options. Also, be aware of the option to choose the contractor of your choice, upgrade your coverage plan, change your policy to a different owner, and protect your roof from leaks, high-end appliance brands exhaust and ceiling fans and faucets and fixtures.

Our research has shown that coverage for plans is the most important, followed by customer service. Industry reputation, plan availability as well as additional features should be equally rated and the price shouldn't be the sole basis for choosing the best home warranty company for your home's needs.

For instance, if your rental has a saltwater pool, appliances from the pro-series, or a reverse osmosis system, Liberty Home Guard has a collection of additional features that might appeal to you. AFC Home Club provides additional assurance if you're not able to make repairs within the 30-day workmanship guarantee. HomeServe's special plans are an excellent alternative for those worried about the utilities of their rental property. American Home Shield is the best option for those looking for a higher level of protection.

We recommend that you request an estimate from at least three different home warranty companies and carefully reading the policy's terms to be sure that you're aware of all limitations and exclusions that are in the policy. 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 or other incentives

A home warranty plan can be a great way to reduce the cost of rental homes. They provide a cost-effective and inexpensive method to repair major appliances that fail. This can help landlords save money in regular repair costs. The other advantage is that the cost of premiums and service charges of the home warranty plan can be included on tax returns as an operating expense dependent on the registration of the landlord. This can reduce their overall income and tax burden.

9. Ability to make repairs and submit them online

Renters can find home warranty plans extremely helpful as they help fix their home. If an item covered by the warranty breaks or malfunctions and needs to be repaired, landlords have to make a claim to their warranty provider. The company will send technicians to the rental property to address the issue as soon as is possible. This will save landlords time and energy in finding a trustworthy contractor who can be reached at short notice. The Home Warranty plans permit landlords to make sure the rental property they lease is properly taken care of by providing rapid service and ease of use.

10. Greater tenant satisfaction

Using the HomePRO Warranty could provide a variety of advantages for tenants both with regards to service and satisfaction. The HomePRO Warranty reduces service calls because tenants can submit their requests directly without waiting for approval from the landlord. This improves the relationship between landlord and tenant. HomePRO Warranty also eliminates the need to maintain a relationship with multiple vendors. The warranty includes repairs and replacements of various systems and appliances. In turn tenants have the peace of mind knowing that their needs are met promptly and effectively. Additionally, having a home warranty can also help in increasing the rent of the house, allowing landlords to earn more every month.