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Published Feb 07, 23
8 min read

What is a warranty for your home?

Home warranties are a kind of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances if they fail due to wear and wear and tear. Home warranties are not identical to home insurance which covers your home's structure against natural disasters and burglaries, but instead safeguard your home's systems and appliances. Every type of home is qualified to be covered by warranty for homes. They can help reduce the cost of repairs and replacements and make it affordable for landlords both new as well as old. Service call fees are an expense that is paid to the warranty provider every time a claim is put in. While the majority of providers provide coverage for older homes, a few may not cover items in the condition that was previously covered.

What are the advantages of a home warranty for rental properties?

1. Protection against high repair costs

A home warranty can be used to shield rental properties from costly repair cost. It gives quick service, ease of use and no service fees. This cuts down on time and money that is spent on repair work and provides financial protection against repair and replacement costs that are unexpected. Regular maintenance helps improve the retention of tenants and clients. Tenants can ask for service without landlord approval. Systems and appliances that are covered are also fixed promptly, which decreases the chance of negative reviews. This can allow landlords to charge less rent and save on.

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

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

3. Peace of mind knowing repairs will be made

Landlords have many benefits of having repairs covered under a home warranty. Landlords do not have to pay cash-on-demand for maintenance and repairs. A home warranty policy makes it easier for all who are involved in repairing their home by sending an inquiry to the warranty provider , who will then send someone to address the issue at the rental property. Additionally, since the majority of repairs and replacements are easily covered and resolved, property management companies can expect reduced costs for contractors hired by third parties and insurance costs. The home warranty offered for rental properties can help to increase client and tenant retention by addressing the most common reason why tenants quit: maintenance problems. Tenants are able to request assistance from their landlords without needing to be approved. This lets them repair their systems and appliances quickly. It also reduces the possibility of tenants complaining about the service. Home warranties offer landlords a cost-effective and efficient solution for repairs to rental properties.

4. It helps you save time and makes it easier to locate a contractor.

A home warranty is an important time saver when looking for contractors. Instead of having to look on the web to find a reliable contractor in a hurry, landlords can submit a claim at their home warranty company. They will send someone to their rental property to resolve the issue as quickly as is possible. This can be much easier than having to contact multiple contractors to locate the best one for the job.

Property managers on the other hand, can save time and effort by bringing a reliable vendor that they know to a house they manage. They are familiar with the prices, the work, and the history of the vendor. This eliminates the need to research and selecting the best contractor for the job. Furthermore, trained vendors tend to be more honest and kind to tenants, which is important to ensure the satisfaction of tenants.

In addition, receiving service from a home warranty provider could take longer than anticipated and can take a few days. This could result in unhappy tenants, who want that their issues will be addressed promptly. Property managers must act as a mediator between tenants and the homeowner warranty provider, adding to the burden.

A home warranty is a great option to cut down on time and avoid the expense of hiring a contractor. Property managers can send trusted vendors they already know to manage homes, and homeowners can file a claim to their warranty company and get the issue fixed in a short time.

5. Ability to budget for repairs

Renters are able to save money using the home warranty plan to cover repairs and replacements of their home appliances as well as mechanical equipment. The warranty for homes ensures that repairs are more predictable and helps tenants be happier. It also improves the bottom line. The home warranty is advantageous because it provides a single provider for all household maintenance and repair needs. It is also a way to not swap money in service calls. A home warranty could reduce the owner's annual costs by covering the full cost of replacing or repairing broken appliances or systems.

6. Additional protection from landlord liability

A home warranty for landlords protects them from landlord liability by providing rapid, professional repairs to systems and appliances that fail due to age or normal wear and wear and tear. This can reduce the possibility of hability lawsuits from tenants, as the repair and replacement of appliances and systems are handled quickly. Repairs covered by the warranty also decrease the need for landlord approval and disputes to be resolved and reduces the chance of liability for landlords. A home warranty may provide additional financial protection as it is tax-deductible and helps in reducing rental costs.

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

Choosing a home warranty provider for a rental property is a difficult decision. It is important to think about choices for coverage, the cost and industry reputation, the customer support and additional features. We recommend looking at the available service plans and add-ons, depth of coverage, plan cost, the reputation of the company, its customer service infrastructure, and other options when choosing a provider for your home warranty. In addition, consider the possibility to select your own contractor, upgrade your coverage package or change your policy to a different owner, and protect your roof from leaks, premium appliances, exhaust and ceiling fans, and fixtures and faucets.

Based on our research, plan coverage is the one that should be considered most important 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 range should not be the main basis for selecting a home warranty company that can meet your needs.

For example, if the rental property you are renting has a saltwater pool, pro-series appliances, or reverse osmosis system Liberty Home Guard has a range of accessories that could interest you. If you're unavailable to take care of repairs within the typical 30-day workmanship guarantee period, AFC Home Club offers the option of a plan-length warranty that can offer additional security. HomeServe's special plans are a good alternative for those concerned about the utility lines of their rental property. American Home Shield is the best option for those seeking greater protection.

We recommend having quotes from at minimum three home warranty companies , and reviewing the contract carefully to ensure you are aware of any limitations or exclusions. This will help you make educated decisions and assist you select the best provider of home warranties for rental properties.

8. The ability to benefit from discounts and incentives

Utilizing a home warranty for rental properties can save money by two methods. In the first place, these plans provide a more convenient, cost-effective solution to repair major household appliances and systems because they are likely to break. This could save landlords cash on regular repairs. The other advantage is that the premium and service fees of the home warranty plan can be claimed on a tax return as operating expenses, depending on the landlord's registration. This will reduce their overall income and tax burden.

9. Ability to send and track repair claims online

Warranty plans for home owners can prove beneficial for rental properties, by making repairs easier. Landlords need to submit an claim with their warranty company if a covered item malfunctions or breaks. The provider will send technicians to your rental property to resolve the problem as quickly as they can. This saves landlords time and effort in finding a trustworthy contractor who can be reached at the shortest notice. By providing expedited service and ease of use, home warranty plans help landlords make sure the rental property they lease is looked after quickly and effectively.

10. Greater tenant satisfaction

Utilizing the HomePRO Warranty could provide a variety of advantages for tenants both in terms of customer service and satisfaction. HomePRO Warranty helps to reduce the number of service calls since tenants can make requests directly, without waiting for the landlord to approve the request. This enhances the relationship between landlords and tenants. Additionally, HomePRO Warranty eliminates the necessity for landlords to maintain a relationship with several vendorssince the warranty includes repairs and replacements of different appliances and systems. In turn, tenants can enjoy the peace of mind knowing that their needs are met promptly and efficiently. The house warranty, which can boost the rent of the house as well, is a fantastic option for landlords who want to earn more money each month.