The Value of Preventive Maintenance in Home Management Guarantee

Published Feb 21, 23
8 min read

What exactly is a home warranty?

Home warranties are contracts 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 damage caused by theft or natural disasters. They're designed to safeguard the home's appliances and systems. Home warranties are offered for all kinds of homes and are able to lower the costs of replacements and repairs, making them perfect for both existing and new landlords. The cost of service is an amount that is charged to the home warranty provider for each claim. Although most companies provide coverage for older homes, a few might not be able to cover items that are in existing conditions.

What are the benefits of having a home warranty in order for rental properties?

1. Protection against high repair costs

A home warranty can be used to protect rentals from expensive repair costs. It provides fast service, ease of use and has no charges for service. This reduces the cost and time that is spent on repair work and offers financial protection against unplanned repairs and replacements. Additionally, the protection of regular maintenance helps increase client and tenant retention since tenants can solicit service without the need for approval from landlords and covered appliances and systems are repaired swiftly, reducing the possibility of negative reviews. This can allow landlords to charge less rent, and also save money.

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

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

3. Peace of mind knowing repairs are being made

Repairs made under the warranty of a home for rental properties can provide landlords with a myriad of benefits. Landlords can avoid having to pay cash on demand for maintenance and repairs. In addition, a home-warranty plan simplifies the home repair process for everyone involved by submitting a claim to the warranty provider, who then sends someone to their rental property to fix the issue. In addition, since many repairs and replacements are addressed and solved quickly, property management companies can expect reduced invoices for third-party contractors as well as insurance costs. The home warranty offered for rental homes will help clients and tenants keep their clients by solving the most common reason for tenants to abandon their homes: maintenance issues. Tenants can request service from their landlords and not need to get approval. This allows them to repair appliances and systems quickly. It also reduces the likelihood of tenants complaining about the service. Home warranties give landlords an affordable and effective solution for repairs to rental properties.

4. It helps you save time and makes it simple to find a contractor.

A home warranty could be an efficient way to find a contractor. Instead of searching the internet for a reliable contractor in a hurry, landlords can submit a claim at their home warranty provider. They will send someone to their rental property to address the problem as soon as they can. This is a lot easier than having to call numerous contractors to find the best contractor.

Property managers however are able to save time and stress by bringing a trusted vendor they already know to a house they manage. They know the price, workmanship and how the vendor has conducted themselves over the years. It is no longer necessary to spend time searching for the perfect contractor. In addition, contractors who have been properly trained will be more tolerant and ethical towards tenants. This is crucial for tenant satisfaction.

Sometimes, it may take days to receive service from a home warranty company. This can lead to unhappy tenants who expect that their issues will be addressed promptly. Property managers must act as a mediator between tenants and the home warranty company, adding to the stress.

A home warranty is an ideal method to reduce time and avoid the expense of hiring a contractor. Property managers can send reliable vendors they know to homes they manage, while homeowners can make an inquiry to their home warranty company and get the issue fixed within a matter of minutes.

5. Budget for repairs

A home warranty that can cover the costs of repairs and replacements to home mechanical systems and appliances will make planning operating expenses easier for landlords of rental properties. The plan for home warranties will make repairs easier and can help tenants feel more comfortable. It also improves the bottom line. The home warranty plan is beneficial because it provides a single source for all maintenance and repair needs. It is also a way to not change money when making service calls. A home warranty could reduce the cost of ownership by covering the full cost of replacing or repairing damaged appliances or systems.

6. Additional protection against landlord liability

A landlord's home warranty protects against landlord liability. It provides expert repairs for appliances and systems that have failed due to normal wear and tear or old age. This reduces the chance of hability lawsuits from tenants, as the repair and replacement of the systems and appliances are completed quickly. The covered repairs make it less necessary to seek approval from landlords and can also settle disputes. This decreases the liability of landlords. Additionally, having a home warranty may act as an additional level of financial security since it is tax-deductible, helping to offset rental expenses.

7. The ability to select between various warranty providers

Choosing a home warranty provider for a rental property isn't an easy task. It is important to consider costs, industry reputation, customer service, and many other aspects. When selecting a home warranty company it is recommended to consider the plans for service and add-ons offered, their cost as well as the reputation of the company and its support systems for customers and other options. Also, think about whether you are able to choose your own contractor, and then upgrade your coverage package. Additionally, consider how simple it is to transfer your policy from one owner to another.

Our research shows that coverage for plans is the most important, then customer service. Industry reputation, plan availability, and additional features should be evaluated equally and the price is not the main base for selecting the right home warranty provider to suit your needs.

If, for instance, your rental property includes a saltwater pool pro-series appliances, or a reverse osmosis device, Liberty Home Guard has a collection of additional features that might interest you. AFC Home Club provides additional protection if you are unable to fix the problem within the 30-day workmanship guarantee. HomeServe's special plans are an excellent alternative for those who are worried about the utilities in their rental property. American Home Shield is a better choice for those who prefer a higher level of coverage.

In the end, we suggest requesting the quotes of at least three home warranty providers and thoroughly reviewing the plan terms to make sure you're aware of any limitations or exclusions from the policies. This will enable you to make educated choices and help you select the best home warranty company for the rental properties you own.

8. Ability to take advantage of discounts and incentives

A home warranty program can be an excellent way to reduce the cost of rental homes. The plans provide a simple and affordable method of fixing major household appliances as they fail. This can save landlords money in regular repair costs. The other advantage 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 registration of the landlord. This will decrease their total income and tax burden.

9. Ability to make repairs and submit them online

Renters can find home warranty plans extremely helpful as they allow them to fix their home. If an item covered by the warranty breaks or malfunctions the landlords only need to submit an insurance claim to their warranty provider. The warranty provider will dispatch a technician to your rental property to fix the issue as soon as is possible. This saves landlords time and energy in searching for a trustworthy contractor that is available on very short notice. Home warranty plans enable owners to be sure that their rental property is taken care of by providing quick service and convenience.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from a HomePRO Warranty, which includes enhanced service and greater customer satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to make requests directly, without having to wait for the landlord's approval the request. This helps improve the relationship between landlords and tenants. HomePRO Warranty also eliminates the need to maintain a relationship with numerous vendors. The warranty covers repairs and replacements of various appliances and systems. Tenants can be assured that they will receive timely and efficient service. The house warranty, which can raise the rental value of the home as well, is a fantastic option for landlords who want to earn more money each month.