The Relevance of Preventive Upkeep in Residential Property Monitoring Warranty

Published Feb 24, 23
8 min read

What is an insurance policy for homes?

A home warranty is a kind of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances when they fail because of normal wear and tear. These warranties are not identical to home insurance , which shields the structure of your home from natural disasters and burglaries and damage, instead they ensure the security of your home's systems as well as appliances. Home warranties are available to all types of dwellings and are able to lower the costs of replacements and repairs which makes them ideal for both new and existing landlords. The cost of service is an amount that is due to the warranty provider for each claim. Most providers do cover older homes, but certain providers do not provide coverage for home appliances with existing conditions.

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

1. Protection against high repair costs

The use of a home warranty on rental properties can guard against costly repairs through fast service, the convenience of one stop shop, and no service charge. This can reduce the time and money that is spent on repair work and offers financial protection against unplanned repairs and replacements. Regular maintenance helps retain tenants and clients. Tenants are able to request services without requiring approval from the landlord. The covered appliances and systems are also fixed swiftly, which lowers the chance of negative reviews. This can help landlords save money while charging more for rent, thus making more money for their pockets.

2. Common household appliances covered

What are the appliances covered under the home warranty of rental properties and what are they covered for? (Extended list) Refrigerators, dishwashers, clothes dryers, clothes washers, trash compactors, ranges/ cooktopsor ovens, microwave built-in ovens with built-in food centers heating systems, water heaters, air conditioning and garbage disposals, electrical systems smoke detectors, central vacuums 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 made

Landlords enjoy many advantages when they have repairs covered by the warranty on their home. By covering repairs, maintenance, and replacements, landlords can save themselves from having shell out cash at any time there is a problem. A home warranty program makes it easier for all who are involved in repairing their property by submitting an claim to the warranty company who will then send someone to fix the problem in their rental property. Furthermore, because the majority of repairs and replacements are covered and resolved quickly, property management companies will see a decrease in costs for contractors hired by third parties and insurance costs. A home warranty for rental properties can help tenants and clients retain their clients by resolving the primary reason why tenants abandon their homes: maintenance issues. Tenants can seek assistance from their landlords without needing to get approval. This lets them repair their systems and appliances quickly. This also decreases the possibility of tenants complaining about it. Home warranties offer landlords a cost-effective and efficient solution for repairs to rental properties.

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

A home warranty that covers rental properties could reduce time and stress when trying to find an expert. Instead of having to search the internet to find a reliable contractor in a hurry, landlords can make a claim with their home warranty provider. They will send a person to their rental property to resolve the issue as quickly as possible. This is much simpler than having to call numerous contractors to find the right contractor.

Property managers can cut down on time and hassle by sending an established vendor to handle a home. They know the price, workmanship and how the company has performed in the past. It's no longer necessary to look around for the right contractor. Additionally, experienced contractors tend to be more ethical and respectful to tenants which is crucial to the tenant's satisfaction.

In addition, receiving service from a company that offers home warranties can take longer than expected in some cases, taking several days. Tenants might be unhappy if they aren't satisfied by the speed at when repairs are finished. Property managers have to act as the middleman between tenants and the homeowner warranty company, which adds to the hassle.

A home warranty can be an excellent option to cut down on time and eliminate the hassle of hiring a contractor. Property managers can assign trusted contractors they have already worked with to homes they manage, while homeowners can submit an claim to their home warranty provider and get the issue fixed within a matter of minutes.

5. The ability to budget repairs

A home warranty that can pay for repairs and replacements to appliances and mechanical systems at home can help budget operating costs easier for rental property owners. A home warranty plan helps to make repairs more predictable, making tenants content and improving the financial results. The home warranty is advantageous since it offers a single source for all household maintenance and replacement requirements. It also eliminates the need to change money when making service calls. A home warranty could reduce the cost of ownership by covering the full expense of replacing or fixing broken appliances or systems.

6. Additional protection from landlord liability

Using a home warranty for landlords protects them from landlord liability by providing prompt, professional repairs for appliances and systems that break due to age or normal wear and wear and tear. This helps reduce the risk of lawsuits arising from hability claims by tenants, as the repair and replacement of appliances and systems are handled quickly. The covered repairs also reduce the need for landlord approval and the need for disputes to be resolved, which further reduces the possibility of landlord liability. Additionally, having a home warranty may act as an additional level of financial security because it's tax-deductible, helping to reduce rental costs.

7. You can pick from a variety of warranty providers

Choosing a home warranty provider for a rental home is a difficult decision. You should consider cost, industry reputation, customer service as well as other features. We suggest considering the various plans for service, add-ons, depth of coverage plans, cost of plan, brand reputation, customer support infrastructure, as well as additional options when choosing a provider for your home warranty. You should also be aware of the possibility of choosing your own contractor and then upgrade your coverage plan. Additionally, consider how simple to transfer your policy from one owner to the next.

Our research has shown that plan coverage is the most importantfactor, followed by customer service. The industry reputation as well as plan availability and other features should be evaluated equally. Price should not be the sole factor in selecting a home warranty company that is able to meet your requirements.

If, for instance, the rental property you are renting has a saltwater pool, pro-series appliances, or a reverse osmosis system, Liberty Home Guard has a range of accessories that could interest you. AFC Home Club provides additional protection if you are unable to repair the issue within the 30-day workmanship guarantee. HomeServe Specialized plans are the best option for those most concerned about their rental's electric lines as well as American Home Shield may be the best option for those who'd rather choose a home warranty provider with more coverage limits.

We suggest seeking quotes from at least three home warranty companies , and reviewing the contract carefully to make sure you are aware of any exclusions or limitations. This will help you make educated decisions and assist you choose the right home warranty company for your rental properties.

8. You can take advantage of discounts and other offers

A home warranty plan for rental properties can to save money by two methods. In the first place, these plans give you a more convenient and low-cost solution for fixing major household appliances and systems because they are likely to break. This could save landlords money on regular repairs. The other benefit is that the service and premium fees associated with the home warranty can be included on tax returns as an operating expense depending on the landlord's registration. This can lower their income overall and reduce tax burden.

9. Online submission and monitoring of repair claims

Renters can find home warranty plans to be extremely beneficial since they make it easier to fix their home. If an item covered by the warranty breaks or malfunctions and needs to be repaired, landlords must submit an claim with their warranty provider. The warranty provider will dispatch technicians to your rental property to fix the issue as fast as is possible. This will save landlords time and effort searching for a trustworthy contractor that can be reached on very short notice. Home warranty plans allow owners to be sure the rental property they lease is taken care of by providing prompt service and convenience.

10. Greater tenant satisfaction

Tenants can benefit from a variety of benefits from the HomePRO Warranty, which includes improved service and customer satisfaction. HomePRO Warranty helps to reduce service calls as tenants can submit requests directly, without waiting for the landlord's approval the request. This helps to improve the relationship between landlords and tenant. Furthermore, HomePRO Warranty eliminates the requirement for landlords to deal with multiple suppliers, since the warranty covers repairs and replacements for various systems and appliances. Tenants can rest assured that they will receive speedy and effective service. The home warranty, which could raise the rental value of the home, can be a great way for landlords to make more money each month.