The Value of Residential Property Monitoring Guarantee for Long-Term Investment

Published Mar 23, 22
8 min read

What is a home warranty?

Home warranties are contracts that cover 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 don't replace insurance for homes which safeguards your home from theft as well as natural disasters. They're designed to safeguard the home's appliances and systems. Home warranties are available for all types of housing and are able to lower the costs of replacements and repairs which makes them ideal for both new and existing landlords. The service call cost is a fee which is paid to the warranty provider every time a claim is put into. Most providers do cover older homes, but certain providers do not provide coverage for home appliances that have preexisting issues.

What are the benefits of having a home guarantee to rent properties?

1. Protection against high repair costs

A home warranty can be utilized to safeguard rentals from expensive repair expenses. It offers quick service, convenience and has no charges for service. This will reduce the amount of time and expense needed to repair your home and also provide financial protection for repairs and replacements that are unexpected. Regular maintenance can help increase client and tenant retention. Tenants can request service without requiring approval from the landlord. Covered appliances and systems can also be repaired swiftly, which lowers the chance of negative reviews. All of this helps landlords save money while charging higher rents, making more money for their pockets.

2. Common household appliances covered

What appliances are covered under the warranty on homes for rental properties and what do they cover? (Extended list) Refrigerators, dishwashers dryers, washers for clothes, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens, built-in food centers, heating systems water heaters, air conditioning and electrical systems, garbage disposals, smoke detectors, central vacuums, plumbing systems, doorbells, ceiling and exhaust fans, the sump pump, septic tank spa, pool and garage door openers.

3. You can be sure that the repairs will be done

Landlords have many benefits from having repairs covered by a home warranty. The landlords don't 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 property by submitting an inquiry to the warranty provider who will then send an individual to address the issue at their rental property. Additionally, since most repairs and replacements can be addressed and solved quickly Property management companies can expect reduced costs for contractors hired by third parties as well as insurance expenses. The home warranty offered for rental properties can help to improve tenant and client retention by addressing the most common reason why tenants leave: maintenance issues. In allowing tenants to request service without the approval of their landlord the covered appliances and systems are fixed swiftly, which reduces the opportunity for negative feedback from angry tenants. All in all, home warranties provide landlords with an affordable and efficient solution to repairs for rental properties.

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

Utilizing a home warranty on rental properties could save time and hassle in the search for the right contractor. Instead of having to look on 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 home to fix the problem as soon as possible. This is much simpler than having to contact numerous contractors to find the most suitable contractor.

Property managers on the other hand are able to save time and hassle by bringing a reliable vendor they have already worked with to manage a home. They know the cost, work schedule and background of the company. It's no longer necessary to look around for the right contractor. In addition, trained contractors tend to be more trustworthy and considerate of tenants, which is essential for tenant satisfaction.

Sometimes, it can take several days to get help from a home warranty provider. This could result in unhappy tenants as they expect that their issues will be completed quickly. Property managers have to act as a middleman between the tenants and the home warranty company, adding to the hassle.

Overall, using a home warranty for rental properties can be beneficial since it saves the time and effort of searching for an expert. Property managers can use trusted vendors they already know to homes they manage, while homeowners can submit a claim to their warranty company and have the problem fixed in a short time.

5. Ability to budget for repairs

Using a home warranty to pay for repairs and replacements to appliances and mechanical systems in your home can make budgeting for operating costs easier for rental property owners. A home warranty program helps to make repair costs easier to predict, keeping tenants content and improving the overall bottom line. It also provides more convenience by providing a one stop shop for all home maintenance repairs and replacement needs, while eliminating the necessity to exchange money at service calls. A home warranty can cut down the owner's annual costs by covering the total expense of replacing or fixing broken appliances or systems.

6. Additional protection against landlord liability

A home warranty for landlords protects against landlord liability. It offers expert repairs for equipment and systems that are failing due to normal wear and tear or 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 also reduce the requirement for approval from landlords and disputes to be resolved and reduces the possibility of landlord liability. A home warranty could provide additional financial protection as it's tax-deductible and can help to reduce rental costs.

7. Ability to choose between different warranty providers

It can be difficult to select a home warranty service for rental homes. It is important to think about coverage options, cost and reputation of the company, as well as customer support system, and additional features. We recommend looking at the various plans for service, additional coverage options, the depth of coverage plans, cost of plan, the reputation of the company, its customer service infrastructure, and other features when selecting the right home warranty company. Also, be aware of the option to select your own contractor, increase your protection package and transfer your plan to another owner, and cover roof leaks, top-of-the-line appliance brands exhaust and ceiling fans, and faucets and fixtures.

Our research shows that plan coverage is most importantfactor, followed by customer service. The reputation of the company as well as plan availability and other features should all be evaluated equally. Price should not be the primary factor when selecting a home warranty company that meets your needs.

For instance, if your rental property features a saltwater swimming pool, pro-series appliances, or a reverse osmosis system Liberty Home Guard has a range of accessories that could appeal to you. If you're unavailable to follow up on repairs within the typical 30 days of the workmanship guarantee, AFC Home Club offers an extended-plan guarantee that could offer additional security. HomeServe's specialized plans can be a great alternative for those worried about the utilities that are connected to their rental home. American Home Shield is a better option for those looking for greater protection.

We suggest having quotes from at minimum three home warranty companies and taking the time to read the terms of the agreement to ensure you are aware of any restrictions or exclusions. By doing this, you can make an informed choice and determine the most suitable home warranty company for your rental property.

8. The ability to benefit from discounts and incentives

Using a home warranty plan for rental properties could help save money in two ways. The plans provide a simple and low-cost way to fix important appliances in the home when they fail. This could help landlords save cash on repairs that are routinely required. The other advantage is that the premium and service fees from the home warranty plan could be included on tax returns as operating expenses, subject to the registration of the landlord. This will reduce their overall income and tax burden.

9. Ability to make repairs and submit them online

Renters will find their home warranty plans very beneficial as they make it easier to repair their home. If a covered product is damaged or fails, landlords just need to submit an insurance claim with their warranty provider. The provider will then send technicians to the rental property to address the problem as quickly as possible, which saves landlords the hassle in searching for a trustworthy contractor on very short notice. Home warranty plans enable owners to be sure that their rental property is taken care of with prompt service and convenience.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from a HomePRO Warranty, such as better service and satisfaction of customers. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for approval from the landlord. This helps improve the relationship between landlords and tenants. HomePRO Warranty also eliminates the necessity of maintaining a relationship with several suppliers. The warranty covers repairs and replacements of various appliances and systems. As a result tenants have the assurance that their needs are met promptly and effectively. The home warranty, which could boost the rent of the house and is a good way for landlords to make more each month.