Residential Or Commercial Property Management Warranty 101: Understanding the Benefits thumbnail

Residential Or Commercial Property Management Warranty 101: Understanding the Benefits

Published Jan 19, 22
8 min read

What is a home warranty?

Home warranties are service agreements which cover the costs of replacing or fixing the appliances and systems in your home if they fail because of normal wear and tear. Home warranties do not replace home insurance that protects your home from damage caused by theft or natural disasters. They're designed to protect your home's appliances and systems. They are available to all types of dwellings and can help minimize the costs of repairs and replacements, making them perfect for both current and new landlords. The cost of service is an amount that is due to the warranty provider per claim. While most providers offer coverage for older homes, some might not cover certain items with the condition that was previously covered.

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 protect against high repair costs by offering speedy service, the convenience of a one-stop shop and no service charge. This will reduce the amount of time and cost required to repair your property and will provide financial security for unexpected repairs and replacements. Additionally, the protection of regular maintenance aids in increasing the retention of clients and tenants, since tenants can solicit service without the need for approval from landlords and the covered appliances and systems are fixed quickly, which reduces the chance of having negative reviews. This can allow landlords to charge lower rent, and also save money.

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

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

3. Relax knowing that repairs will be completed

Making repairs through a home warranty for rental properties provides landlords with many advantages. With the coverage of repairs, maintenance appointments, and replacements, landlords can be protected from having to pay cash at any time something goes wrong. Furthermore, a home warranty plan simplifies the home repair procedure for all involved by submitting a claim to the warranty provider, who then sends a technician to the rental property to address the issue. Furthermore, because most repairs and replacements can be covered and resolved quickly and efficiently, property management companies can expect reduced invoices for third-party contractors as well as insurance expenses. A home warranty for rental properties is also a way to improve tenant and client retention by dealing with the primary reason that causes tenants to move out: maintenance issues. Tenants are able to request assistance from their landlords and not need to be approved. This allows them to repair appliances and systems swiftly. It also reduces the chance of tenants complaining about the service. Overall, home warranties provide landlords with a cost effective and efficient solution to rental property repairs.

4. It helps you save time and makes it simple to find a contractor.

Using a home warranty for rental properties can save time and hassle in the search for a contractor. Instead of having to search the web for a reliable contractor in a hurry, landlords can make a claim with their home warranty company. They will send someone to their rental home to fix the issue as quickly as is possible. This is a lot easier than having to contact several contractors to find the right contractor.

Property managers can reduce time and stress by hiring an experienced and reliable vendor to oversee the home. They are familiar with the pricing, work and history of the vendor. There is no need to search for the perfect contractor. In addition, contractors who have been trained are more likely to be friendly and trustworthy to tenants. This is essential for tenant satisfaction.

Sometimes, it may take some time to receive assistance from a home warranty provider. This could result in unhappy tenants who expect that their issues will be dealt with quickly. Property managers have to act as a middleman between the tenants and the homeowner warranty company, adding to the stress.

In the end, the home warranty option for rental properties can be beneficial as it can save time and trouble of finding an expert. Property managers can send reliable vendors they know to managed homes, while homeowners can submit a claim to their warranty company and get the issue fixed in a short time.

5. Budget for repairs

Renters are able to save money using an insurance plan for home repairs and replacements of their home appliances and mechanical systems. A home warranty program helps to make repairs more predictable, keeping tenants happy and increasing the financial results. The home warranty plan is beneficial as it is a one-stop source for all household maintenance and repair needs. It can also reduce the requirement to exchange money during service calls. A home warranty can cut down the cost of ownership by covering the total expense of replacing or fixing damaged appliances or systems.

6. Additional protection from liability of landlords

A landlord's home warranty protects against landlord liability. It covers expert repairs for appliances and systems that are failing due to normal wear and tear or age. This helps reduce the risk of lawsuits arising from hability claims by tenants, as the repair and replacement of the appliances and systems are taken care of promptly. Covered repairs reduce the need to obtain landlord approval as well as resolve disputes. This further decreases the liability of landlords. In addition, having a homeowner's warranty in place can serve as an additional protection against financial loss, as it qualifies as tax-deductible, allowing you to pay for rental costs.

7. You can choose from a variety of warranty providers

The selection of a warranty company for your home for rental properties isn't an easy task. It's important to consider the choices for coverage, the cost and reputation of the company, as well as customer support system, and any additional features. When choosing a home warranty provider it is recommended to consider the service plans and additional options available, price, industry reputation and support systems for customers and other features. In addition, pay attention to the ability to choose your own contractor, change your coverage plan and transfer your plan to a different owner, and also cover roof leaks, top-of-the-line appliances exhaust and ceiling fans and faucets and fixtures.

Based on our research, plan coverage will be the main factor and customer service should be the second most significant factor. The reputation of the company, plan availability and additional features should all be evaluated equally. The price range shouldn't be the sole factor in choosing a provider of home warranties that is able to meet your requirements.

Liberty Home Guard offers a variety of accessories to meet your requirements, such as a saltwater pool reverse osmosis system and appliances from the pro-series. AFC Home Club provides additional security in the event that you're unable to make repairs within the 30-day workmanship guarantee. HomeServe special plans could be an ideal option for those who are concerned about their rental's utilities and American Home Shield may be the best option for those who'd rather choose a home warranty company with more coverage limits.

Ultimately, we recommend requesting a quote from at least three different home warranty companies and carefully reviewing the plan terms to ensure you are aware of all limitations and exclusions from the policies. This will enable you to make informed decisions and help you choose the right home warranty company for rental properties.

8. The ability to benefit from discounts and other incentives

A home warranty plan for rental properties can help to save money in two ways. The plans provide a simple and affordable method of fixing major appliances that fail. This could help landlords save from having to pay for regular repairs. In addition, depending on the way a landlord is registered the total premium and service charges of the home warranty program can be included as operating expenses on tax returns and thus reduce their income total, and therefore their tax burden.

9. Ability to make repairs and submit them online

Renters can find home warranty plans very beneficial as they help repair their property. When a covered item breaks or malfunctions and needs to be repaired, landlords need to submit a claim to their warranty provider. The provider will send an expert to the rental property to address the issue as fast as is possible. This can save landlords time and energy in finding a reliable contractor who can be reached at short notice. Home warranty plans allow owners to be sure the rental property they lease is properly taken care of through rapid service and ease of use.

10. Greater tenant satisfaction

The use of the HomePRO Warranty can provide many benefits for tenants, both in terms of service and satisfaction. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for the approval of the landlord. This enhances the relationship between tenants and landlords. Additionally, HomePRO Warranty eliminates the necessity for landlords to deal with multiple vendors, as the warranty covers repairs and replacements for various systems and appliances. Tenants can rest assured they will receive prompt and efficient service. The house warranty, which may increase the property's rental price and is a good way for landlords to make more every month.