A Comprehensive Overview to Home Administration Service Warranty for Residential Or Commercial Property Managers thumbnail

A Comprehensive Overview to Home Administration Service Warranty for Residential Or Commercial Property Managers

Published Dec 24, 22
8 min read

What is a warranty for your home?

Home warranties are service agreements which cover the cost of replacing or repairing the appliances and systems in your home in the event of failure due to normal wear and tear. Home warranties are not like home insurance , which shields your home's structure against natural disasters and burglaries and damage, instead they safeguard your home's systems and appliances. Home warranties are offered to all types of dwellings and are able to minimize the cost of replacements and repairs, making them perfect for both current and new landlords. The cost of service is an amount that is charged to the home warranty company per claim. A majority of the providers will cover older homes, but some do not provide coverage for home appliances with preexisting conditions.

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

1. Protection against high repair costs

A home warranty that covers rental properties can guard against costly repairs through fast service, convenience of one stop shop, and no service charge. This reduces the time and expense needed to repair your home and provide financial protection in the event of unexpected repairs or replacements. Furthermore, the coverage of regular maintenance can increase the likelihood of client and tenant retention because tenants are able to make requests for service with no landlord approval and covered appliances and systems are fixed quickly, which reduces the chance of having negative reviews. This can help landlords save money and charge more for rent, thus putting more money in their pockets.

2. Common household appliances covered

What types of appliances are covered by an insurance policy for rental properties? (Extended list) Refrigerators, dishwashers and clothes dryers, washers for clothes, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens with built-in food centers heating systems water heaters, air conditioning and garbage disposals, electrical systems, central vacuums, smoke detectors, plumbing systems, doorbells, ceiling and exhaust fans, the sump pump, septic tank spa, pool as well as garage door openers.

3. You can rest assured that repairs will be completed

Landlords have many benefits when they have repairs covered by the warranty on their home. Through covering repairs, maintenance appointments and repairs, landlords are able to protect themselves from having to pay out money at any time there is a problem. Furthermore, a home warranty program makes it easier to complete the home repairs process for everyone involved . submitting a claim to the warranty company, who will then send a person to their rental property to fix the problem. In addition, since most repairs and replacements can be covered and resolved quickly and efficiently, property management companies will see a decrease in costs for contractors hired by third parties as well as insurance expenses. Having a home warranty for rental properties is also a way in enhancing client and tenant retention by tackling the number one reason tenants move out: maintenance issues. Tenants can seek assistance from their landlords without needing to get approval. This lets them repair their appliances and systems swiftly. It also reduces the chance of tenants complaining about it. All in all homeowners' warranties provide landlords with a cost-effective and effective solution for rental property repairs.

4. It saves you time and makes it easy to locate contractors.

A home warranty is a time-saver when searching for a contractor. Instead of having to search the internet for a reliable contractor in the nick of time, landlords can submit a claim at their home warranty company. They will send a person to their rental property to resolve the issue as quickly as they can. This is a lot easier than having to contact numerous contractors to find the best contractor.

Property managers, on the other hand they can cut down on time and hassle by bringing a trusted vendor they already know to a house they manage. They are familiar with the costs, workmanship and how the vendor has behaved over the years. There is no need to spend time searching for the perfect contractor. Additionally, experienced contractors are more likely to be honest and considerate of tenants, which is essential to ensure the satisfaction of tenants.

Sometimes, it can take several days to get assistance from a home warranty provider. Tenants can become dissatisfied if they aren't happy with the speed with when repairs are finished. This causes anger. Property managers act as a middleman between tenants, the homeowner warranty provider, and property owners.

Overall, having a home warranty on rental properties is beneficial since it saves time and trouble of finding a contractor. Property managers can use trusted vendors they already know to homes they manage, while homeowners can submit a claim to their home warranty provider and have the issue resolved in a short time.

5. Budget for repairs

Using a home warranty to help with repairs and replacements for appliances and mechanical systems at home will make planning operating costs easier for property owners who own rental properties. The home warranty plan will make repairs easier and can help tenants feel more comfortable. This also increases the bottom line. The home warranty plan is beneficial because it provides a single source for all maintenance and replacement needs. It can also reduce the requirement to change money when making service calls. Furthermore, having a home warranty can help lower the owner's annual expenses by covering all or most of the cost of repairing and replacing aging or malfunctioning equipment and systems.

6. Additional protection from landlord liability

A home warranty for landlords can help protect them from the risk of liability for landlords by offering quick, professional repairs of systems and appliances that fail due to wear and tear. Tenants are less likely to be able to sue landlords due to the repairs and replacements of appliances and systems are done swiftly. The covered repairs make it less necessary to get approval from the landlord and can also settle disputes. This further lowers the risk of liability for landlords. Additionally, having a home warranty in place can serve as an additional protection against financial loss because it's tax-deductible, helping to pay for rental costs.

7. You can pick from a variety of warranty companies.

It's not easy to pick a home insurance service for rental homes. It's crucial to look at the plans, costs and reputation of the company, as well as customer support, and additional features. When choosing a home warranty company We recommend looking at the plans for service and add-ons offered, their cost, industry reputation and customer support services, as well as other options. You should also be aware of the possibility of choosing your own contractor and then upgrade your coverage package. Additionally, consider how simple to transfer your plan from one person to the next.

Based on our findings, plan coverage will be the main factor, with customer support as the second-most important factor. The company's reputation, plan availability and additional features should all be evaluated equally. The price range shouldn't be the sole factor in selecting a home warranty company that is able to meet your requirements.

For instance, if the rental property you are renting features a saltwater swimming pool, pro-series appliances, or reverse osmosis system, Liberty Home Guard has a suite of add-ons that may be appealing to you. If you're not available to follow up on repairs within the standard 30-day guarantee on workmanship, AFC Home Club offers the option of a plan-length warranty that can offer additional security. HomeServe's special plans are a good option for people who are concerned about the lines of electricity of their rental property. American Home Shield is the best option for those seeking a higher level of protection.

We suggest getting quotes from at least three companies for home warranties and taking the time to read the terms of the agreement to ensure you are aware of any exclusions or limitations. Doing so will help you make an informed decision and choose the best home warranty provider for your rental property.

8. You can benefit from discounts and other benefits

A home warranty plan can be a fantastic way to reduce the cost of rental homes. They provide a cost-effective and inexpensive method to repair important appliances in the home when they fail. This could save landlords money in regular repair costs. In addition, depending on the way the landlord is registered, the whole premium and costs of the home warranty plan can be claimed as operating expenses on tax returns and thus reduce the total amount of income they earn, and therefore their tax burden.

9. Online submission and monitoring of repair claims

Home warranty plans for renters are plans very beneficial as they help repair their home. If an item covered by the warranty is damaged or fails the landlords only need to submit an insurance claim with their warranty company. The company will then send technicians to the rental property to address the problem as quickly as they can, saving landlords the hassle of finding a reliable contractor with a short notice. With their speedy service and ease of use the home warranty plan helps landlords make sure their rental property is taken care of quickly and effectively.

10. Greater tenant satisfaction

Tenants will benefit from a HomePRO Warranty, including better service and satisfaction of customers. The HomePRO Warranty reduces service calls because tenants can submit their demands directly, without waiting for the approval of the landlord. This can improve the relationship between landlords and tenant. In addition, HomePRO Warranty eliminates the need for landlords to have to deal with multiple suppliers, since the warranty covers repairs and replacements for various appliances and systems. Tenants can rest assured that they will receive speedy and effective service. The home warranty, which can boost the rent of the house and is a good option for landlords who want to earn more money each month.