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Invest in Your Home's Future with Specialist Residential Property Administration Guarantee Services

Published Feb 21, 23
8 min read

What is an insurance policy for homes?

Home warranties are service contracts which cover the cost of replacing or repairing your home's appliances and systems when they fail due to normal wear and tear. These warranties are not identical to home insurance which covers the structure of your home from natural disasters and theft and damage, instead they safeguard your home's systems and appliances. They are available for all types of housing and are able to reduce the cost of repairs and replacements, making them perfect for both new and existing landlords. The service fee is the amount due to the warranty provider per claim. The majority of providers provide coverage for older homes, however certain providers don't cover items in the home that have preexisting issues.

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

1. Protection against high repair costs

A home warranty can be used to shield rental properties from high repair expenses. It gives quick service, ease of use and has no charges for service. This reduces the time and expense required to repair your property and will provide financial security for repairs and replacements that are unexpected. In addition, the insurance coverage for regular maintenance helps increase tenant and client retention, since tenants can solicit service without the need for approval from landlords and protected appliances and systems can be repaired swiftly, reducing the chance of having negative reviews. This can allow landlords to charge less rent, and also save money.

2. Common household appliances covered

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

3. Relax knowing that repairs will be completed

Landlords enjoy many advantages from having repairs covered by a home warranty. Landlords do not have to pay cash-on-demand for maintenance and repairs. Additionally, a home warranty plan simplifies the home repair process for everyone involved . sending a claim to the warranty provider, who will then send a person to their rental property to fix the problem. In addition, since many repairs and replacements are covered and resolved quickly, property management companies can anticipate a reduction in costs for contractors hired by third parties as well as insurance expenses. The home warranty offered for rental homes can help tenants and clients retain their customers by addressing the primary reason why tenants leave: maintenance problems. Tenants can request service from their landlords without having to be approved. This allows them to repair appliances and systems quickly. This also decreases the possibility of tenants complaining about it. Home warranties provide landlords with a cost-effective and efficient solution to repair rental properties.

4. It reduces time as well as making it easier to find a contractor.

Using a home warranty for rental properties could to reduce the time and effort when trying to find an expert. Rather than having to go out and find a reputable contractor on an emergency basis, a landlord simply needs to send a claim to their home warranty company and they will dispatch someone to their rental property to address the issue as soon as they can. This is much simpler than having to reach out to several contractors to find the most suitable contractor.

Property managers can reduce time and effort by deploying a trusted vendor to manage a home. They are familiar with the prices, the work, and the history of the vendor. It's no longer necessary to look around for the perfect contractor. In addition, contractors who have received training are more likely be kind and ethical to tenants. This is important for tenant satisfaction.

Sometimes, it can take days to receive assistance from a company that offers home warranties. Tenants may be dissatisfied when they are not satisfied with the speed at when repairs are finished. This adds to the anger. Property managers serve as intermediaries between the tenants, the home warranty company, and the property owners.

In the end, a home warranty for rental properties is beneficial as it can save time and hassle of finding contractors. Property managers can assign reliable vendors they know to managed homes, while homeowners can submit an inquiry to their warranty company and have the issue resolved within a matter of minutes.

5. The ability to budget repairs

Renters can save money by using a home warranty to cover repairs and replacements of their appliances at home as well as mechanical equipment. A home warranty program helps to make repair costs more predictable, making tenants happier, and improving the overall bottom line. It also provides more convenience, as it provides a one stop shop for all maintenance and replacement requirements, and eliminating the need to change money during service calls. Additionally, having a home warranty can reduce the owner's annual expenses by covering all or most of the expense of repairing and replacing aging or malfunctioning equipment and systems.

6. Additional protection from landlord liability

The use of a home warranty by landlords protects them from landlord liability by providing rapid, professional repairs to appliances and systems that break due to age or normal wear and tear. This can reduce the possibility of hability lawsuits from tenants as repairs and replacement of the systems and appliances are completed quickly. The covered repairs make it less necessary to obtain landlord approval, and also resolve disputes. This lowers the risk of liability for landlords. A home warranty could offer additional financial protection since it is tax-deductible and helps to offset rental costs.

7. Ability to choose between different warranty providers

It can be difficult to choose a home warranty provider for rental properties. You must consider costs as well as the reputation of the company, its customer service, and many other aspects. When choosing a home warranty company, we recommend considering the service plans and add-ons available, cost, industry reputation and support systems for customers and other options. You should also consider whether you can choose your own contractor and then upgrade your coverage plan. Also, how easy it is to transfer your plan from one owner to the next.

Based on our research, coverage of plans will be the main factor and customer service should be the second most significant factor. The industry reputation as well as plan availability and other features should be considered equally. The price range shouldn't be the sole factor in selecting a home warranty provider that is able to meet your requirements.

Liberty Home Guard offers a range of add-ons to suit your needs, such as saltwater pools reverse osmosis system and appliances from the pro-series. If you're not able to follow up on repairs within the normal 30 days of the workmanship guarantee, AFC Home Club offers a plan-length guarantee that may give you additional security. HomeServe's specialized plans are a good alternative for those concerned about the utility lines of their rental property. American Home Shield is an ideal option for those seeking a higher level of coverage.

We suggest having quotes from at minimum three home warranty companies and reading through the terms carefully to make sure you are aware of any limitations or exclusions. By doing this, you can make an informed choice and choose the best home warranty provider for your rental property.

8. The ability to benefit from discounts and other incentives

A home warranty plan could be an excellent way to reduce the cost of rental homes. The first is that these plans provide a more convenient, cost-effective solution to repair important household appliances and systems as they inevitably break down. This can help landlords save money in regular repair costs. Additionally, based on the manner in which a landlord is registered the whole premium and charges from the home warranty program can be included as operating expenses on a tax return and thus reduce the total amount of income they earn, and therefore their tax burden.

9. Ability to send and track repair claims online

Renters will find their home warranty plans very beneficial as they help repair their home. If a covered product breaks or malfunctions the landlords only need to submit an claim to their warranty provider. The warranty provider will send technicians to the rental property to address the issue as soon as is possible, saving landlords the time and effort of finding a reliable contractor with a the shortest notice. Through providing speedy service and convenience, home warranty plans help landlords make sure their rental property is taken care of quickly and efficiently.

10. Greater tenant satisfaction

Utilizing the HomePRO Warranty could provide a variety of benefits for tenants, both 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 relationships between tenants and landlords. Additionally, HomePRO Warranty eliminates the necessity for landlords to deal with multiple vendorssince the warranty will cover repairs and replacements for various appliances and systems. Therefore, tenants can enjoy the peace of mind knowing that their needs will be taken care of promptly and effectively. The house warranty, which could increase the property's rental price and is a good opportunity for landlords to earn more money each month.