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Published Feb 14, 23
8 min read

What is a warranty for your home?

Home warranties are service agreements that provide for the costs of replacing or fixing your home's appliances and systems when they fail due to normal wear and wear and tear. Home warranties are not a substitute for home insurance which safeguards your home from theft and natural catastrophes. They are designed to protect your home's appliances as well as systems. They are available for all kinds of homes and can help lower the cost of replacements and repairs, making them perfect for both new and existing landlords. A service call fee is a fee which is due to the home warranty company each time a claim gets put in. A majority of the providers will offer coverage for older homes, however certain providers do not provide coverage for home appliances with preexisting conditions.

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

1. Protection against high repair costs

A home warranty can be used to shield rental properties from costly repair costs. It offers quick service, ease of use and no service fees. This can reduce the time and money spent on repair jobs and also provides financial protection from repair and replacement costs that are unexpected. Furthermore, the coverage of regular maintenance can increase the likelihood of tenant and client retention, since tenants can make requests for service with no 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. Common household appliances covered

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

3. Peace of mind knowing repairs will be completed

Landlords can benefit when they have repairs covered by the home warranty. By covering repairs, maintenance, and replacements, landlords can protect themselves from having to shell out cash on demand whenever something goes wrong. Furthermore, a home warranty plan makes the home repair process for everyone involved . submitting a claim to the warranty provider, who then sends someone to their rental property to address the problem. Property management companies will experience an improvement in third-party contractor invoices and insurance expenses due to the fact that many repairs and replacements are done quickly. A home warranty for rental properties will help clients and tenants retain their clients by solving the most common reason for tenants to quit: maintenance issues. Tenants can request service from their landlords and not need to be approved. This permits them to fix systems and appliances quickly. It also reduces the likelihood of tenants complaining about it. Home warranties give landlords the most cost-effective and efficient option to repair rental properties.

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

Utilizing a home warranty on rental properties can save time and hassle in the search for a contractor. Instead of searching for a reliable contractor the nick of time, landlords can make a claim with their home warranty provider. They will dispatch someone to their rental property to address the issue as fast as possible. This is more convenient that needing to call multiple contractors to locate the best one to complete the task.

Property managers however are able to save time and effort by bringing a reliable vendor they have already worked with to manage a home. They are familiar with the cost, work schedule and background of the vendor. There is no need to spend time searching for the right contractor. In addition, contractors who have received training are more likely be kind and trustworthy to tenants. This is important for tenant satisfaction.

In addition, receiving service from a home warranty company could take longer than anticipated in some cases, taking several days. This can result in dissatisfied tenants, who want that their issues will be addressed promptly. This can cause discontent. Property managers are an intermediary between tenants, the home warranty company, and the property owners.

A home warranty can be an ideal way to save time and avoid the expense of hiring an expert contractor. Property managers can recommend reliable vendors to manage their properties. Owners of homes can submit a claim to their warranty company to resolve the issue promptly.

5. Ability to budget repairs

Renters are able to save money using an insurance plan for home repairs and replacements of their home appliances and mechanical systems. The plan for home warranties ensures that repairs are more predictable and helps tenants be happier. It also boosts the bottom line. It also provides more convenience by providing a one stop shop for all home maintenance repairs and replacement needs, while not having to exchange money at service calls. A home warranty can cut down the cost of ownership by covering the entire expense of replacing or fixing damaged appliances or systems.

6. Added protection against landlord liability

Using a home warranty for landlords can help protect them from landlord liability through quick, professional repairs of appliances and systems that break due to wear and tear. This can reduce the possibility of lawsuits for hability from tenants, as the repair and replacement of the appliances and systems are handled quickly. Repairs covered by the warranty reduce the need to get approval from the landlord, and also resolve disputes. This further reduces landlord liability. Furthermore, having a home warranty in place can serve as an additional layer of financial protection because it's tax-deductible, allowing you to offset rental expenses.

7. Ability to choose between different warranty providers

It can be difficult to pick a home insurance service for rental homes. You should consider cost as well as the reputation of the company, its customer service as well as other features. When choosing a home warranty company it is recommended to consider the service plans and add-ons available, cost, reputation in the industry and the customer support services and other features. Also, consider the possibility to select the contractor of your choice, increase your coverage plan, transfer your plan to another owner, and protect your roof from leaks, premium appliances, exhaust and ceiling fans and fixtures and faucets.

Based on our research, coverage of plans should carry the most weight in the customer support department as the second most important aspect. The industry reputation plans, availability of plans and additional features should be evaluated equally. Price should not be the primary factor when selecting a home warranty provider that can meet your needs.

If, for instance, your rental property includes a saltwater pool appliances from the pro-series, or a reverse osmosis system Liberty Home Guard has a range of accessories that could interest you. AFC Home Club provides additional security in the event that you're unable to make repairs within the timeframe of the 30-day workmanship warranty. HomeServe Specialized plans are a good choice for those who are most concerned about their rental property's utility lines and American Home Shield may be the ideal choice for those who prefer a home warranty provider with more coverage limits.

We recommend getting quotes from at least three home warranty companies and reviewing the contract carefully to ensure you are aware of any exclusions or limitations. This will allow you to make informed decisions and help to select the most suitable home warranty provider for rental properties.

8. Possibility to avail discounts and other incentives

A home warranty plan could be a fantastic method to reduce the cost of rental homes. In the first place, these plans offer a convenient, low-cost solution for fixing major appliances and systems in the home because they are likely to break. This can save landlords the expense of regular repairs. Secondly, depending on how a landlord is registered the total premium and service charges of the home warranty plan can be declared as operating expenses on a tax return and thus reduce their income total, and therefore their tax burden.

9. Ability to submit and track repair claims online

Home warranty plans can be extremely useful for rental properties due to making repairs easier. Landlords only need to file an claim with their warranty provider if a covered item malfunctions or fails to function. The warranty provider will send an expert to the rental property to fix the problem as quickly as is possible, saving landlords the time and effort in searching for a trustworthy contractor with a very short notice. Home warranty plans enable owners to be sure the rental property they lease is taken care of through prompt service and convenience.

10. Greater tenant satisfaction

Using a HomePRO Warranty could provide a variety of benefits for tenants, both with regards to customer service and satisfaction. The HomePRO Warranty reduces service calls because tenants can submit their request directly without having to wait for the approval of the landlord. This can improve the relationship between landlord and tenant. HomePRO Warranty also eliminates the need to maintain a relationship with several vendors. The warranty includes repairs and replacements of various appliances and systems. Tenants can rest assured they will receive prompt and efficient service. A house warranty, which can raise the rental value of the home as well, is a fantastic way for landlords to make more each month.