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Why You Can't Afford to Neglect Residential Or Commercial Property Monitoring Guarantee

Published Feb 07, 23
8 min read

What is a home warranty?

Home warranties are a service agreement that will cover the cost of fixing or replacing your home's system and appliances if they fail due to normal wear and tear. These warranties are not the same as home insurance which covers the structure of your home from natural disasters and burglaries however they do safeguard your home's systems and appliances. Home warranties are available for all types of housing and are able to lower the cost of replacements and repairs and are therefore ideal for both existing and new landlords. The service fee is an amount that is paid to the home warranty company for each claim. The majority of providers offer coverage for older homes, however some don't cover items in the home that have preexisting issues.

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

1. Protection against high repair costs

A home warranty is used to protect rental properties from costly repair costs. It offers quick service, ease of use, and zero service charges. This reduces the cost and time used on repairs and provides financial protection against repair and replacement costs that are unexpected. Furthermore, the coverage of regular maintenance can increase the likelihood of tenant and client retention, as tenants are able to make requests for service with no landlord approval and covered appliances and systems are fixed quickly, which reduces the possibility of negative reviews. This can allow landlords to charge lower rent and save more.

2. Protection for household appliances that are commonplace

What appliances are covered under a home warranty for rental properties ? And what exactly do they cover? (Expanded List) Refrigerators and dishwashers, dryers for clothes and washers for clothes; garbage compactors; cooktops/ ovens; built-in microwave ovens; built-in food centers; HVAC systems, heating, electrical systems, water heaters garbage disposals, central vacuums, smoke detectors smoke alarms, plumbing systems. Doorbells, ceiling fans, exhaust fans, septic tanks, sump pumps, spas and garage door openers.

3. Peace of mind knowing repairs are being made

Making repairs through the home warranty offered to rental properties offers landlords a myriad of benefits. Landlords do not have to pay cash on demand for repairs and maintenance. In addition, a home-warranty plan simplifies the home repair process for everyone involved by submitting a claim to the warranty company. The provider will then send a person to their rental property to fix the issue. In addition, since most repairs and replacements can be covered and resolved quickly and efficiently, property management companies can expect reduced costs for contractors hired by third parties as well as insurance costs. A home warranty for rental properties helps clients and tenants keep their clients by solving the most common reason for tenants to abandon their homes: maintenance issues. When tenants are able to request service without the approval of their landlord as covered, the appliances and systems can be repaired swiftly, which reduces the chances of receiving negative reviews from frustrated tenants. Home warranties give landlords an affordable and effective solution for repairs to rental properties.

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

A home warranty could be an important time saver when looking for contractors. Instead of having to head out and search for an experienced contractor with a good reputation on an emergency basis, a landlord simply needs to make a claim with their home warranty provider , and they will send someone to their rental home to address the issue as soon as is possible. This is much simpler than having to reach out to several contractors to find the most suitable contractor.

Property managers can reduce time and stress by hiring a trusted vendor to manage a home. They are familiar with the prices, the work, and the history of the vendor. It is no longer necessary to look around for the right contractor. In addition, trained contractors are more likely to be honest and considerate of tenants, which is crucial to the tenant's satisfaction.

Furthermore, getting assistance from a company that offers home warranties can take longer than expected, sometimes taking a few days. Tenants may be dissatisfied when they aren't satisfied with the speed with when repairs are finished. Property managers have to act as the middleman between tenants and the home warranty company, adding to the stress.

Overall, having a home warranty on rental properties is beneficial since it saves time and hassle of finding an expert. Property managers can send reliable vendors they know to managed homes, while homeowners can file an inquiry to their warranty company and have the problem fixed in a short time.

5. Ability to budget repairs

Using a home warranty to cover the costs of repairs and replacements to home mechanical systems and appliances can make budgeting for operating expenses much easier for landlords of rental properties. A home warranty program helps to make repairs more predictable, keeping tenants happy and increasing the bottom line. It also offers more convenience as it is an one-stop shop for all household maintenance repairs and replacement needs, while eliminating the need to swap money on service calls. A home warranty can reduce the annual expenses of the homeowner by covering the entire expense of replacing or fixing damaged appliances or systems.

6. Additional protection from landlord liability

A home warranty for landlords helps protect against landlord liability through rapid, professional repairs to appliances and systems that fail due to wear and tear. This helps reduce the risk of lawsuits arising from hability claims by tenants, as the repair and replacement of the systems and appliances are handled quickly. Repairs covered by the warranty reduce the need to obtain landlord approval, and also resolve disputes. This lowers the risk of liability for landlords. A home warranty could offer additional financial protection since it is tax-deductible and helps to offset rental costs.

7. You can choose from different warranty companies.

It's not easy to pick a home insurance service for rental homes. It is important to consider costs and reputation in the industry, customer service, and other features. We recommend looking at the available service plans and add-ons, depth of coverage the plan's cost, its brand reputation, customer support infrastructure, and other features when selecting a home warranty provider. Also, pay attention to the ability to choose the contractor of your choice, upgrade your coverage package and transfer your plan to a different owner, and cover roof leaks, high-end appliances, exhaust and ceiling fans, and fixtures and faucets.

Our research has shown that plan coverage is most crucial factor, followed by customer support. The company's reputation, plan availability and additional features should be considered equally. The price range shouldn't be the primary factor when selecting a home warranty provider that is able to meet your requirements.

Liberty Home Guard offers a assortment of additional options to meet your requirements, including a saltwater pool, reverse osmosis systems, and appliances from the pro-series. If you're unavailable to attend to repairs within the typical 30-day workmanship guarantee period, AFC Home Club offers an extended-plan guarantee that could provide additional protection. HomeServe's specialized plans can be a great alternative for those concerned about the lines of electricity in their rental property. American Home Shield is the best option for those seeking greater protection.

We suggest having quotes from at minimum three companies for home warranties and taking the time to read the terms of the agreement to make sure you are aware of any exclusions or limitations. This will enable you to make educated choices and help to select the most suitable provider of home warranties for the rental properties you own.

8. You can benefit from discounts or other incentives

A home warranty plan can be a great option to save money on rental properties. First, these plans can provide a more convenient, affordable solution to fix important household appliances and systems because they are likely to break. This could save landlords money on regular repairs. Another advantage is that the cost of premiums and service charges from the home warranty plan may be claimed on a tax return as an operating expense, dependent on the registration of the landlord. This will decrease their total income and tax burden.

9. Online submission and tracking of repair claims

Warranty plans for home owners can be extremely useful for rental properties due to simplifying repairs. The landlord only has to file an claim with their warranty provider if a covered item malfunctions or fails to function. The company will send technicians to your rental property to resolve the problem as quickly as they can. This can save landlords time and energy in finding a reliable contractor who can be reached at very short notice. By providing expedited service and ease of use, home warranty plans help landlords make sure their rental property is maintained quickly and effectively.

10. Greater tenant satisfaction

Utilizing a HomePRO Warranty can provide many advantages for tenants both in terms of service and satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to send their requests directly without having to wait for the landlord's approval the request. This helps improve the relationship between tenants and landlords. HomePRO Warranty also eliminates the need to maintain a relationship with several suppliers. The warranty covers repairs and replacements of various appliances and systems. Therefore, tenants can enjoy the peace of mind knowing that their needs will be met promptly and efficiently. Additionally the home warranty can also help in increasing the rent of the property, allowing landlords to earn more every month.