The Advantages of Fixing and also Upkeep Guarantee Providers for Residential Property Managers thumbnail

The Advantages of Fixing and also Upkeep Guarantee Providers for Residential Property Managers

Published Feb 21, 23
8 min read

What is a warranty for your home?

A home warranty is a kind of service agreement that will pay for the cost of fixing or replacing your home's system and appliances in the event that they fail due to wear and tear. They do not replace home insurance, which protects your home from theft and natural catastrophes. They're designed to safeguard your home's appliances and systems. Home warranties are offered to all types of dwellings and can help lower the cost of repairs and replacements, making them perfect for both new and existing landlords. The cost of service is the amount charged to the home warranty provider per claim. The majority of providers offer coverage for older homes, however some do not cover home items with preexisting conditions.

What are the advantages of using a home warranty for rental properties?

1. Protection against high repair costs

A home warranty can be utilized to safeguard rentals from expensive repair cost. It gives quick service, ease of use, and zero service charges. This will reduce the amount of time and expense needed to fix your property and will provide financial security for repairs and replacements that are unexpected. In addition, the insurance coverage for regular maintenance aids in increasing tenant and client retention, as tenants are able to solicit service without the need for approval from landlords and covered appliances and systems are repaired quickly, reducing the possibility of negative reviews. This allows landlords to charge less rent and save more.

2. Coverage for common household appliances

What appliances are covered under the home warranty of rental properties and what do they cover? Refrigerators, dishwashers and clothes dryers, washers for clothes, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens, built-in food centers, heating systems, air conditioning, water heaters garbage disposals, electrical systems, central vacuums, smoke detectors, doorbells, plumbing systems ceiling and exhaust fans septic tank, sump pump, spa, pool, as well as garage door openers.

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

Landlords enjoy many advantages from having repairs covered by the warranty on their home. The landlords don't have to pay cash on demand for maintenance and repairs. A home warranty plan makes it easier for all involved to repair their home by sending a claim to the warranty provider , who will then send someone to fix the problem at the rental property. Property management companies can expect less third-party contractor invoices and insurance expenses due to the fact that most repairs and replacements can be completed in a short time. A home warranty for rental properties is also a way in enhancing client and tenant retention by dealing with the primary reason that causes tenants to leave: maintenance issues. Tenants are able to request assistance from their landlords without needing to get approval. This allows them to repair appliances and systems quickly. It also reduces the chance of tenants complaining about the service. In the end the home warranty provides landlords with a cost effective and efficient solution to rental property repairs.

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

A home warranty could be a time-saver when searching for a contractor. Rather than 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 an individual to the rental property to address the issue as soon as possible. This is a lot easier than having to call multiple contractors to locate the most suitable contractor.

Property managers can reduce time and effort by deploying a trusted vendor to manage a home. They know the price as well as the quality of work and how the vendor has conducted themselves in the past. It is no longer necessary to look around for the perfect contractor. In addition, contractors who have been trained are more likely be kind and ethical to tenants. This is essential for tenant satisfaction.

Furthermore, getting assistance from a home warranty provider may take longer than you expected, sometimes taking a few days. This could result in unhappy tenants, who want their repairs to be addressed quickly. Property managers are required to serve as a middleman between the tenants and the homeowner warranty company, adding to the burden.

A home warranty is an ideal method to reduce time and eliminate the hassle of hiring contractors. Property managers can use trusted vendors they already know to homes they manage, while homeowners can submit a claim to their home warranty provider and have the problem fixed in no time.

5. Budget for repairs

A home warranty that can help with repairs and replacements to home mechanical systems and appliances can make budgeting for operating expenses much easier for rental property owners. The home warranty plan ensures that repairs are more predictable and can help tenants feel more comfortable. It also improves the bottom line. Additionally, it provides greater convenience as it is an one-stop shop for all household maintenance repairs and replacement requirements, and eliminating the necessity to exchange money at service calls. Furthermore having a home warranty can help lower the annual cost of ownership by covering all or most of the expense of repairing and replacing old or damaged appliances and systems.

6. Additional protection from liability of landlords

A landlord's home warranty safeguards landlords from liability. It offers skilled repairs to appliances and systems that are failing because of normal wear and tear or aging. This helps reduce the risk of lawsuits for hability from tenants, as the repair and replacement of the systems and appliances are handled quickly. The covered repairs make it less necessary to obtain landlord approval and can also settle disputes. This also lowers the risk of liability for 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 home can be a tricky endeavor. You must consider costs and reputation in the industry, customer service, and other features. It is recommended to consider the plans available for service and add-ons, depth of coverage, plan cost, brand reputation, customer support infrastructure, as well as additional options when choosing the right home warranty company. Also, be aware of the option to choose the contractor of your choice, upgrade your coverage package or transfer your plan to another owner, and protect your roof from leaks, high-end appliances, exhaust and ceiling fans and fixtures and faucets.

Our research shows that coverage for plans is the most importantfactor, followed by customer support. The company's reputation as well as plan availability and other features should all be considered equally. Price should not be the primary factor when selecting a home warranty provider that is able to meet your requirements.

For instance, if your rental includes a saltwater pool appliances from the pro-series, or a reverse osmosis system Liberty Home Guard has a range of accessories that could be appealing to you. If you're not able to attend to repairs within the typical 30-day workmanship guarantee period, AFC Home Club offers an extended-plan guarantee that could provide an additional level of protection. HomeServe's specialized plans can be a great alternative for those who are worried about the utilities that are connected to their rental home. American Home Shield is an ideal option for those looking for a higher level of protection.

Ultimately, we recommend requesting the quotes of at three providers for home warranties and carefully reading the terms of the plan to make sure you're aware of all limitations and exclusions from the policies. Doing so will help you make an informed choice and determine the most suitable home warranty company for your rental property.

8. Possibility to avail discounts and other incentives

A home warranty plan could be a fantastic way to save money on rental properties. The first is that these plans offer a convenient, low-cost solution for fixing major appliances and systems in the home because they are likely to break. This could save landlords cash on regular repairs. Another benefit is that the service and premium fees associated with the home warranty may be included on tax returns as operating expenses, depending on the landlord's registration. This could decrease their total income and tax burden.

9. Ability to submit and track repair claims online

Home warranty plans can be extremely useful for rental properties due to simplifying the repair process. Landlords need to submit an claim with their warranty provider when an item covered by warranty malfunctions or breaks. The provider will send an expert to your rental property to resolve the issue as soon as they can. This will save landlords time and energy in finding a trustworthy contractor who can be reached on the shortest notice. The Home Warranty plans permit owners to be sure the rental property they lease is taken care of by providing quick service and convenience.

10. Greater tenant satisfaction

Utilizing a HomePRO Warranty can bring many benefits to tenants with regards to customer service and satisfaction. The HomePRO Warranty reduces service calls because tenants are able to submit requests directly without waiting for the approval of the landlord. This helps improve the relationship between tenants and landlords. HomePRO Warranty also eliminates the necessity of maintaining a relationship with numerous suppliers. The warranty covers repairs and replacements of different systems and appliances. In turn, tenants can enjoy the peace of mind knowing that their needs will be taken care of promptly and efficiently. The home warranty, which may boost the rent of the house and is a good opportunity for landlords to earn more money each month.