Why Professional Home Management Guarantee Services are a Smart Financial Investment for Landlords

Published Feb 24, 23
8 min read

What is a home warranty?

A home warranty is a service agreement that will cover the cost of fixing or replacing your home's systems and appliances when they fail because of normal wear and wear and tear. Home warranties don't replace insurance for homes that protects your home from theft and natural catastrophes. They're designed to safeguard your home's appliances as well as systems. Home warranties are available for all types of housing and can help lower the cost of replacements and repairs, making them perfect for both new and existing landlords. The service call cost is a fee which is due to the home warranty company each time a claim is put into. A majority of the providers will cover older homes, but certain providers do not provide coverage for home appliances with existing conditions.

What are the benefits of using a home warranty to lease properties?

1. Protection against high repair costs

A home warranty is used to shield rentals from expensive repair cost. It offers quick service, ease of use and no service fees. This can reduce the amount of time and expense that is spent on repair work and offers financial protection against 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 repaired swiftly, reducing the chance of having negative reviews. All of this helps landlords save money while charging higher rents, increasing the amount of money they can put in their pockets.

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

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

3. You can be sure that repairs will be made

Landlords have many benefits of having repairs covered under a home warranty. By covering repairs, maintenance appointments and even replacements, landlords be protected from having to pay cash at any time something goes wrong. Furthermore, a home warranty plan makes the home repair procedure for all involved by sending a claim to the warranty company. The provider then sends a technician to the rental home to resolve the issue. Additionally, since most repairs and replacements can be addressed and solved quickly, property management companies can expect reduced charges for contractors from third parties and insurance costs. A home warranty for rental properties will help tenants and clients retain their clients by solving the most common reason for tenants to abandon their homes: maintenance issues. In allowing tenants to request service without the approval of their landlord, covered appliances and systems are fixed promptly, which means there is less opportunity for negative reviews from frustrated tenants. Home warranties give landlords a cost-effective and efficient solution for repairs to rental properties.

4. It helps you save time as well as making it simple to find a contractor.

A home warranty can be an important time saver when looking for an expert contractor. Instead of having to look on the web to find a reliable contractor in an instant, landlords could file a claim through their home warranty provider. They will dispatch someone to their rental home to fix the issue as fast as they can. This is a lot easier than having to reach out to numerous contractors to find the best contractor.

Property managers can save time and hassle by sending an experienced and reliable vendor to oversee the home. They know the prices, the work, and background of the vendor. There is no need to look around for the best contractor. Furthermore, contractors who have received training are more likely to be friendly and trustworthy to tenants. This is crucial for tenant satisfaction.

Sometimes, it takes some time to receive assistance from a home warranty provider. Tenants can become dissatisfied if they are not satisfied by the speed at which repairs are completed. Property managers have to act as a middleman between the tenants and the home warranty provider, adding to the stress.

Overall, having the home warranty option for rental properties is beneficial since it saves the time and effort of searching for an expert. Property managers can use trusted contractors they have already worked with to managed homes, while homeowners can submit an 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 a home warranty to cover repairs and replacements to their home appliances as well as mechanical equipment. A home warranty can help to make repair costs more predictable, keeping tenants happy and increasing the financial results. The home warranty is advantageous because it provides a single provider for all household maintenance and replacement needs. It also eliminates the need to change money when making service calls. Additionally the home warranty could help reduce the cost of homeowner's insurance by covering all or most of the expense of repairing and replacing aging or malfunctioning appliances and systems.

6. Protection against landlord liability

A home warranty for landlords safeguards landlords from liability. It offers skilled repairs to equipment and systems that have failed due to normal wear and tear or age. Tenants are less likely to be able to sue landlords due to repairs and replacements for appliances and systems are done swiftly. Repairs covered by the warranty also decrease the need for landlord approval and disputes that need to be settled and reduces the risk of landlord liability. A home warranty can offer additional financial protection since it is tax-deductible and helps to offset rental costs.

7. You can choose among a variety of warranty companies.

It's not easy to pick a home insurance service for rental homes. It is important to consider costs as well as the reputation of the company, its customer service system, and other features. When selecting a home warranty company We recommend looking at the different plans and additional options available, price, industry reputation and support systems for customers in addition to other options. You should also think about whether you are able to choose your own contractor, and then upgrade the coverage you have. Also, how easy to transfer your plan from one owner to another.

Based on our research, plan coverage should carry the most weight and customer service should be the second most significant factor. The reputation of the company as well as plan availability and other features should be evaluated equally. Price range should not be the primary factor when choosing a provider of home warranties that meets your needs.

For example, if the rental property you are renting includes a saltwater pool appliances from the pro-series, or a reverse osmosis device, Liberty Home Guard has a suite of add-ons that may interest you. AFC Home Club provides additional protection if you are unable to make repairs within the 30-day workmanship guarantee. HomeServe Specialized plans are a good choice for those most concerned about their rental's electric lines and American Home Shield may be the ideal choice for those who'd rather choose a home warranty provider with more coverage limits.

In the end, we suggest requesting the quotes of at least three home warranty providers and carefully reading the policy's terms to be sure that you're aware of the limitations and exclusions from the policies. By doing this, you can make an informed choice and find the best home warranty company for your rental property.

8. You can take advantage of discounts and other benefits

A home warranty plan for rental properties can reduce costs in two ways. The plans provide a simple and low-cost way to fix major appliances that fail. This can help landlords save the expense of regular repairs. Additionally, based on the manner in which a landlord is registered the total premium and service charges of the home warranty plan could be declared as operating expenses on a tax return, thus reducing their income total, and therefore their 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 the repair process. When a covered item is damaged or fails and needs to be repaired, landlords need to submit a claim with their warranty provider. The warranty provider will send a technician to the rental property to fix the issue as fast as possible, which saves landlords the hassle of searching for a reputable contractor at very short notice. Home warranty plans allow owners to be sure the rental property they lease is properly taken care of through prompt service and convenience.

10. Greater tenant satisfaction

Utilizing the HomePRO Warranty can bring many benefits to tenants with regards to customer service and satisfaction. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for approval from the landlord. This improves the relationship between tenants and landlords. Additionally, HomePRO Warranty eliminates the necessity for landlords to maintain a relationship with several suppliers, since the warranty will cover repairs and replacements for various appliances and systems. Tenants can be assured that they will receive timely and efficient service. The house warranty, which could increase the property's rental price as well, is a fantastic option for landlords who want to earn more money each month.