The Ultimate Security for Your Rental Residential Or Commercial Property: Building Management Warranty thumbnail

The Ultimate Security for Your Rental Residential Or Commercial Property: Building Management Warranty

Published Feb 24, 23
8 min read

What is a home warranty?

Home warranties are contracts that cover the costs of replacing or fixing the appliances and systems in your home when they fail due to normal wear and tear. These warranties are not identical to home insurance which covers your home's structure from natural disasters or theft and damage, instead they safeguard your home's systems and appliances. All types of housing are suitable for home warranties. They can help reduce the costs of repairs or replacements and make it affordable for landlords both new as well as old. The cost of service is an amount that is charged to the home warranty provider for each claim. A majority of the providers will offer coverage for older homes, however some 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 that covers rental properties can guard against costly repairs through fast service, the convenience of a one-stop shop and there is no charge for service. This can reduce the time and money 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 aids in increasing client and tenant retention since tenants can solicit service without the need for approval from landlords and protected appliances and systems can be fixed quickly, which reduces the risk of negative reviews. This can help landlords save money and charge more for rent, thus increasing the amount of money they can put in their pockets.

2. Common household appliances are covered

What kind of appliances are covered under the home warranty in rental properties? Refrigerators, dishwashers and clothes dryers, clothes washers, trash compactors, cooktops and rangesor ovens, microwave 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. Peace of mind knowing repairs will be made

Repairs made under the home warranty offered to rental properties can provide landlords with a myriad of benefits. By covering repairs, maintenance appointments, and repairs, landlords are able to protect themselves from having to pay out money when there is a problem. A home warranty policy makes it easier for all affected to fix their property by submitting a claim to the warranty provider who will then send someone to repair the issue in their rental property. Property management companies can expect an improvement in third-party contractor invoices and insurance expenses due to the fact that a lot of repairs and replacements can be completed quickly. The home warranty offered for rental homes can help clients and tenants retain their customers by addressing the main reason that tenants quit: maintenance issues. Tenants can request service from their landlords and not need to be approved. This lets them repair their appliances and systems quickly. Also, it reduces the possibility of tenants complaining about the service. Home warranties provide landlords with the most cost-effective and efficient option to repair rental properties.

4. It helps you save time and makes it easy to locate contractors.

A home warranty is an important time saver when looking for an expert contractor. Instead of searching the web for a reliable contractor a hurry, landlords can submit a claim at their home warranty provider. They will send a person to their rental home to fix the problem as soon as they can. This can be much more efficient than having to contact multiple contractors to find the right one for the job.

Property managers however are able to save time and hassle by sending a trusted vendor they already know to a house they manage. They know the price, workmanship and how the company has performed in the past. There is no need to look around for the perfect contractor. Furthermore, contractors who have been trained are more likely to be friendly and trustworthy to tenants. This is important to ensure that tenants are satisfied.

Sometimes, it takes days to receive assistance from a home warranty provider. This can lead to unhappy tenants who expect their repairs to be dealt with quickly. Property managers are required to serve as a middleman between the tenants and the homeowner warranty company, adding to the hassle.

A home warranty is an excellent method to reduce time and eliminate the hassle of hiring contractors. Property managers can suggest trusted vendors to manage homes. Owners of homes can submit a claim to their home warranty provider to have the problem resolved quickly.

5. The ability to budget repairs

Renters can save money by using an insurance plan for home repairs and replacements to their home appliances as well as mechanical equipment. A home warranty program helps in making repairs easier to predict, keeping tenants content and improving the bottom line. Additionally, it provides greater convenience as it is a one stop shop for all maintenance and replacement requirements, and eliminating the need to exchange money at service calls. A home warranty can cut down the owner's annual costs by covering the full repair or replacement costs of broken appliances or systems.

6. Additional protection from landlord liability

The use of a home warranty by landlords helps protect against the risk of liability for landlords by offering prompt, professional repairs for appliances and systems that break due to wear and tear. Tenants are less likely to sue landlords for hability because the repairs and replacements of appliances and systems are completed quickly. Repairs covered by the warranty reduce the need to get approval from the landlord as well as resolve disputes. This also lowers the risk of liability for landlords. In addition, having a homeowner's warranty may act as an additional level of financial security since it is tax-deductible, helping to offset rental expenses.

7. Ability to choose between different warranty providers

It isn't easy to select a home warranty service for rental homes. It is important to consider costs and reputation in the industry, customer service, as well as other features. When selecting a home warranty provider We recommend looking at the service plans and add-ons available, cost, industry reputation and customer support infrastructure in addition to other features. It is also important to consider whether you can choose your own contractor, and then upgrade the coverage you have. Additionally, consider how simple it is to transfer your plan from one person to the next.

Based on our findings, plan coverage will be the main factor in the customer support department as the second most important aspect. The industry reputation as well as plan availability and other features should be evaluated equally. The price range shouldn't be the sole factor in selecting a home warranty provider that meets your needs.

For instance, if the rental property you are renting includes a saltwater pool pro-series appliances, or a reverse osmosis system Liberty Home Guard has a suite of add-ons that may appeal to you. If you're not able to follow up on repairs within the normal 30-day guarantee on workmanship, AFC Home Club offers a plan-length guarantee that may offer an additional level of protection. HomeServe Specialized plans are an ideal option for those who are concerned about their rental property's utility lines, and American Home Shield may be the most suitable option for those looking to choose a home warranty provider with more coverage limits.

We recommend having quotes from at minimum three home warranty companies and taking the time to read the terms of the agreement to be aware of any restrictions or exclusions. This will allow you to make educated choices and help you select the best home warranty provider for the rental properties you own.

8. You may take advantage of discounts and other offers

A home warranty plan for rental properties can help to save money by two methods. First, these plans can offer a convenient, cost-effective solution to repair important household appliances and systems since they will eventually break. This could save landlords money on regular repairs. Additionally, based on the manner in which a landlord is registered, the total premium and service charges from the home warranty program can be claimed as operating expenses in a tax return which will reduce the total amount of income they earn, and therefore their tax burden.

9. Online submission and monitoring of repair claims

Renters can find home warranty plans very beneficial as they make it easier to repair their home. Landlords only need to file claims with their warranty provider if an item covered by warranty malfunctions or breaks. The provider will then send technicians to the rental property to address the issue as fast as is possible, saving landlords the time and effort in searching for a trustworthy contractor at short notice. Home warranty plans allow landlords to ensure that their rental property is taken care of by providing quick service and convenience.

10. Greater tenant satisfaction

Using a HomePRO Warranty could provide a variety of advantages for tenants both in terms of service and satisfaction. HomePRO Warranty helps to reduce service calls as tenants can make requests directly, without waiting for the landlord to approve them. This helps to improve the relationship between landlord and tenant. HomePRO Warranty also eliminates the necessity of maintaining a relationship with several vendors. The warranty includes repairs and replacements of various systems and appliances. Therefore tenants have the peace of mind knowing that their needs will be met promptly and effectively. Lastly the warranty on your home can help to increase the rental cost of the house, allowing landlords to make more money every month.