How Property Management Warranty Can Assist You Handle Risks

Published Feb 23, 23
8 min read

What is a home warranty?

Home warranties are agreements which cover the costs of replacing or fixing the appliances and systems in your home when they fail due to normal wear and wear and tear. Warranty plans do not replace home insurance, which protects your home from theft as well as natural catastrophes. They're designed to safeguard your home's appliances and systems. They are available for all types of housing and can help reduce the cost of replacements and repairs and are therefore ideal for both existing and new landlords. The service fee is an amount that is paid to the home warranty company for each claim. Although most companies offer coverage for older homes, some might not cover certain items with the condition that was previously covered.

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

1. Protection against high repair costs

The use of a home warranty on rental properties can help protect against the high cost of repairs through fast service, the convenience of a one-stop shop and with no cost for service. This cuts down on time and money used on repairs and provides financial protection against unexpected repairs and replacements. Additionally, the protection of regular maintenance can increase the likelihood of client and tenant retention as tenants are able to 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 help landlords save money while charging more for rent, thus increasing the amount of money they can put in their pockets.

2. Common household appliances covered

What kinds of appliances are covered by an insurance policy for rental properties? Refrigerators, dishwashers, clothes dryers and washers for clothes; garbage compactors; cooktops and rangesor ovens; microwaves with built-in ovens; built-in food centers; heating systems; air conditioning, electric systems; water heaters; garbage disposals, smoke detectors, central vacuums and smoke alarms; plumbing systems. Doorbells and ceiling fans, exhaust fans sump pumps, septic tanks, spas and garage door openers.

3. You can rest assured that repairs will be completed

Repairs made under the warranty of a home for rental properties offers landlords numerous advantages. Landlords do not have to pay cash on demand for repairs and maintenance. In addition, a home-warranty program makes it easier to complete the home repairs process for everyone involved by making a claim with the warranty company, who then sends a technician to the rental property to address the problem. Property management companies will experience a decrease in third-party contractor invoices and insurance expenses due to the fact that most repairs and replacements can be completed quickly. A home warranty for rental properties can help tenants and clients retain their clients by resolving the main reason that tenants abandon their homes: maintenance issues. In allowing tenants to request service without permission from the landlord, covered appliances and systems can be repaired promptly, which means there is less opportunity for negative feedback from angry tenants. Home warranties give landlords the most cost-effective and efficient option to repair rental properties.

4. It saves you time as well as making it easy to locate contractors.

A home warranty can be an efficient way to find a contractor. Rather than having to go out to find an experienced contractor with a good reputation on very short notice, the landlord can simply send a claim to their home warranty company and they will send someone to their rental property to take care of the issue as soon as possible. This could be more convenient that having to contact multiple contractors to find the right one to complete the task.

Property managers, on the other hand they can cut down on time and stress by bringing a trusted vendor that they know to a managed home. They are familiar with the pricing, work and the history of the vendor. There is no need to search for the right contractor. In addition, trained contractors tend to be more trustworthy and considerate of tenants, which is crucial to ensure the satisfaction of tenants.

Sometimes, it may take days to receive help from a home warranty provider. This can result in dissatisfied tenants, who want that their issues will be completed promptly. Property managers must act as the middleman between tenants and the homeowner warranty company, adding to the stress.

A home warranty can be an ideal method to reduce time and eliminate the hassle of hiring contractors. Property managers can assign reliable vendors they know to managed homes, while homeowners can make an claim to their home warranty company and have the problem fixed 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 for their home appliances as well as mechanical equipment. A home warranty plan helps to make repair costs more predictable, keeping tenants happy and increasing the bottom line. Additionally, it provides greater convenience by providing an all-in-one solution for all maintenance and replacement needs, while eliminating the necessity to swap money on service calls. Additionally, having a home warranty could help reduce the annual cost of ownership by covering all or a large portion of the costs of fixing and replacing old or damaged appliances and systems.

6. Additional protection from landlord liability

A home warranty for landlords guards against liability for landlords. It offers professional repairs to appliances and systems that have failed due to wear and tear or old age. This reduces the chance of hability lawsuits from tenants since repairs and replacement of the systems and appliances are handled quickly. Covered repairs reduce the need to get approval from the landlord, and also resolve disputes. This lowers the risk of liability for landlords. Additionally, having a home warranty in place can serve as an additional protection against financial loss, as it qualifies as tax-deductible and can help pay for rental costs.

7. You can choose from different warranty companies.

It can be difficult to select a home warranty provider for rental properties. It is important to consider costs, industry reputation, customer service system, and other features. It is recommended to consider the available service plans and add-ons, depth of coverage the plan's cost, its industry reputation, customer support infrastructure, and additional options when choosing the right home warranty company. You should also consider whether you can choose your own contractor and then upgrade your coverage package. Also, how easy to transfer your plan from one owner to another.

Based on our research, coverage of plans will be the main factor, with customer support as the second most significant factor. The reputation of the company plans, availability of plans and additional features should be evaluated equally. Price should not be the primary factor when selecting a home warranty provider that meets your needs.

If, for instance, your rental includes a saltwater pool pro-series appliances, or reverse osmosis device, Liberty Home Guard has a suite of add-ons that may appeal to you. AFC Home Club provides additional assurance if you're not able to fix the problem within the timeframe of the 30-day workmanship warranty. HomeServe's special plans can be a great option for people who are worried about the utilities in their rental property. American Home Shield is an ideal choice for those who prefer more protection.

In the end, we suggest requesting the quotes of at least three home warranty providers and carefully reading the terms of the plan to make sure you're aware of any limitations or exclusions that are in the policy. This will allow you to make educated decisions and assist you select the best home warranty provider for rental properties.

8. You may take advantage of discounts and other offers

A home warranty program can be a fantastic option to reduce the cost of rental homes. First, these plans can give you a more convenient and low-cost solution for fixing important household appliances and systems as they inevitably break down. This can save landlords money on regular repairs. Additionally, based on the manner in which the landlord is registered, the total premium and service costs of the home warranty plan could be included as operating expenses on tax returns which will reduce their income total and thus their tax burden.

9. Ability to send and track repair claims online

Warranty plans for home owners can be incredibly helpful for rental properties by making repairs easier. The landlord only has to file an claim with their warranty company if a covered item malfunctions or fails to function. The company will then send technicians to the rental home to resolve the issue as fast as possible, which saves landlords the time and effort of searching for a reputable contractor on very short notice. The Home Warranty plans permit landlords to ensure the rental property they lease is taken care of through rapid service and ease of use.

10. Greater tenant satisfaction

Tenants can benefit from a variety of benefits of a HomePRO Warranty, which includes improved service and customer satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to submit requests directly, without having to wait for the landlord to approve the request. This can improve the relationship between landlords and tenant. Furthermore, HomePRO Warranty eliminates the necessity for landlords to maintain a relationship with several suppliers, since the warranty will cover repairs and replacements for various systems and appliances. In turn tenants have the security of knowing that their requirements will be met quickly and effectively. A home warranty, which may raise the rental value of the home, can be a great opportunity for landlords to earn more every month.