The Ultimate Guide to Picking the Right Residential Property Monitoring Warranty Strategy

Published Feb 24, 23
8 min read

What is a home warranty?

A home warranty is a kind of service agreement that covers the cost of repairing or replacing your home's system and appliances in the event that they fail due to normal wear and tear. Home warranties are not identical to insurance for your home, which protects your home's structure against natural disasters and theft, but instead protect your home's systems and appliances. Home warranties are offered for all kinds of homes and can be used to minimize the costs of repairs and replacements and are therefore ideal for both current and new landlords. Service call fees are an expense which is due to the home warranty company each time a claim is made into. The majority of providers provide coverage for older homes, however certain ones do not provide coverage for home appliances with preexisting conditions.

What are the benefits of having a home warranty in order 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 with no cost for service. This reduces the time and expense needed to repair your home and also provide financial protection for repairs and replacements that are unexpected. Additionally, the protection of regular maintenance helps increase tenant and client retention, as tenants are able to make requests for service with no landlord approval and protected appliances and systems can be fixed quickly, which reduces the risk of negative reviews. This allows landlords to charge lower rent and save more.

2. The coverage is for appliances used in the common household

What kind of appliances are covered under an insurance policy for rental properties? (Expanded List) Refrigerators and dishwashers, clothes dryers and washers for clothes; garbage compactors; cooktopsor ovens; microwaves with built-in ovens and built-in food centres; heating systems; air conditioning, electric systems; water heaters; garbage disposals, central vacuums, smoke detectors smoke alarms, plumbing systems. Doorbells, ceiling fans, exhaust fans, sump pumps, septic tanks, spas and garage door openers.

3. You can rest assured that the repairs will be done

Making repairs through the warranty of a home for rental properties can provide landlords with a myriad of advantages. By covering repairs, maintenance, and replacements, landlords can save themselves from having pay out money when something goes wrong. Additionally, a home warranty plan simplifies the home repair process for everyone involved . making a claim with the warranty company, who then sends someone to their rental home to resolve the problem. Furthermore, because many repairs and replacements are easily covered and resolved Property management companies can anticipate a reduction in invoices for third-party contractors as well as insurance costs. Having a home warranty for rental properties is also a way in enhancing client and tenant retention by addressing the primary reason that causes tenants to leave: maintenance issues. Tenants can request service from their landlords without needing to get approval. This allows them to repair systems and appliances quickly. It also reduces the possibility of tenants complaining about it. Overall homeowners' warranties provide landlords with a cost effective and effective solution for rental property repairs.

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

Utilizing a home warranty on rental properties could reduce time and stress when it comes to finding an expert. Instead of having to go out and find an experienced contractor with a good reputation on very short notice, the landlord simply needs to send a claim to their home warranty provider and they will send someone to their rental property to address the problem as quickly as possible. This could be more efficient than having to contact multiple contractors to find the right one to complete the task.

Property managers can reduce time and hassle by sending an experienced and reliable vendor to oversee a home. They know the prices, the work, and the history of the company. It is no longer necessary to look around for the perfect contractor. Additionally, vendors who have been properly trained will be more tolerant and ethical towards tenants. This is essential for tenant satisfaction.

Furthermore, getting assistance from a company that offers home warranties may take longer than you expected, sometimes taking a few days. This could result in unhappy tenants as they expect that their issues will be addressed quickly. This causes frustration. Property managers serve as intermediaries between the tenants, the home warranty company, and the property owners.

A home warranty is an ideal way to save time and avoid the hassle of hiring contractors. Property managers can recommend reliable vendors to manage their the homes. Homeowners are able to file a claim with their home warranty provider to have the problem resolved quickly.

5. Budget for repairs

A home warranty that can pay for repairs and replacements of appliances and mechanical systems in your home can help budget operating expenses much easier for landlords of rental properties. A home warranty program helps to make repairs easier to predict, keeping tenants happy and increasing the overall bottom line. It also offers more convenience by providing a one stop shop for all home maintenance repairs and replacement needs, while eliminating the need to change money during service calls. A home warranty can cut down the annual expenses of the homeowner by covering the total expense of replacing or fixing broken appliances or systems.

6. Additional protection from landlord liability

A home warranty for landlords safeguards landlords from liability. It provides professional repairs to equipment and systems that are failing due to wear and tear or age. Tenants are less likely claim hability from landlords because the repairs and replacements of appliances and systems are completed promptly. Covered repairs reduce the need to obtain landlord approval and can also settle disputes. This also reduces landlord liability. Additionally, having a home warranty may act as an additional layer of financial protection because it's tax-deductible and can help reduce rental costs.

7. You can choose from different warranty providers

The selection of a warranty company for your home for a rental property isn't an easy task. You should consider cost as well as the reputation of the company, its customer service, and many other aspects. It is recommended to consider the plans available for service and extensions, coverage depth the plan's cost, its the reputation of the company, its customer service infrastructure, as well as additional features when selecting a home warranty provider. You should also consider whether you can choose your own contractor and then upgrade the coverage you have. Additionally, consider how simple to transfer your policy from one owner to another.

Our research suggests that plan coverage is the most crucial factor, followed by customer service. Reputation in the industry, availability of plans as well as additional features should be rated equally, and price range shouldn't be the sole factor in choosing the best home warranty company for your home's needs.

For instance, if your rental has a saltwater pool, pro-series appliances, or a reverse osmosis device, Liberty Home Guard has a suite of add-ons that may be appealing to you. If you're not able to follow up on repairs within the typical 30-day workmanship guarantee period, AFC Home Club offers a plan-length guarantee that may give you an additional level of protection. The HomeServe plans that are tailored to your needs can be a great option for people who are concerned about the utility lines of their rental property. American Home Shield is an ideal option for those looking for greater coverage.

In the end, we suggest requesting the quotes of at least three home warranty providers and carefully reading the policy's terms to be sure that you're aware of the limitations and exclusions from the policies. By doing this, you can make an informed decision and determine the most suitable home warranty company for your rental property.

8. Ability to take advantage of discounts and incentives

A home warranty plan for rental properties can help save money by two methods. First, these plans can provide a more convenient, low-cost solution for fixing major appliances and systems in the home because they are likely to break. This can save landlords cash on regular repairs. Additionally, based on the manner in which a landlord is registered the entire premium and service costs of the home warranty program can be declared as an operating expense on tax returns, thus reducing their income total, and therefore their tax burden.

9. Online submission and tracking of repair claims

Renters will find their home warranty plans very beneficial as they make it easier to repair their property. If a covered product fails or breaks, landlords just need to submit an claim to their warranty company. The company will send technicians to the rental property to address the problem as quickly as is possible. This saves landlords time and effort finding a reliable contractor who is available on very short notice. Through providing speedy service and convenience Home warranty plans can help landlords to ensure the rental property they lease is looked after quickly and efficiently.

10. Greater tenant satisfaction

Tenants will benefit of a HomePRO Warranty, which includes enhanced service and greater customer 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 necessity of maintaining a relationship with several vendors. The warranty will cover repairs and replacements for various appliances and systems. Tenants can be assured that they will receive timely and efficient service. The home warranty, which may raise the rental value of the home and is a good way for landlords to make more money each month.