Expert Building Administration Guarantee Solutions: A Game-Changer for Landlords

Published Feb 21, 23
8 min read

What is a warranty for your home?

Home warranties are service 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. Home warranties are not the same as insurance for your home, which protects your home's structure from natural disasters and burglaries, but instead safeguard your home's systems and appliances. Every type of home is eligible for home warranties. They can reduce the cost of repairs or replacements and make it affordable for landlords both new as well as old. The service call cost is an amount that is paid to the warranty provider every time a claim is made in. Most providers do cover older homes, but some don't cover items in the home with preexisting conditions.

What are the advantages of using a home warranty for rental properties?

1. Protection against high repair costs

A home warranty can be utilized to safeguard rental properties from high repair expenses. It offers quick service, ease of use and no service fees. This cuts down on cost and time used on repairs and provides financial protection against unexpected repairs and replacements. Furthermore, the coverage of regular maintenance aids in increasing client and tenant retention because tenants are able to solicit service without the need for approval from landlords and covered appliances and systems are repaired swiftly, reducing the risk of negative reviews. This can allow landlords to charge less rent and save on.

2. Protection for household appliances that are commonplace

What appliances are covered under a home warranty for rentals and what are they covered for? [Expanded List] Refrigerators and dishwashers, dryers for clothes and washers for clothes; garbage compactors; cooktops/ ovens; built-in microwave ovens with built-in food centers heating systems; air conditioning, electrical systems, water heaters garbage disposals; central vacuums, smoke detectors, smoke alarms; plumbing systems. Doorbells ceiling fans, exhaust fans sump pumps, septic tanks spas and garage door openers.

3. You can rest assured that the repairs will be done

Landlords enjoy many advantages of having repairs covered under a warranty on their home. The landlords don't have to pay cash on demand for maintenance and repairs. A home warranty program allows everyone involved to repair their home by sending an inquiry to the warranty provider , who will then send someone to repair the issue at their rental property. In addition, since many repairs and replacements are covered and resolved quickly and efficiently, property management companies will see a decrease in invoices for third-party contractors as well as insurance costs. The home warranty offered for rental homes will help clients and tenants retain their customers by addressing the main reason that tenants quit: maintenance issues. In allowing tenants to seek service without landlord approval as covered, the appliances and systems are repaired quickly, resulting in less chance of negative reviews from unhappy tenants. Home warranties offer landlords an affordable and effective solution to repair rental properties.

4. It saves you time as well as making it easier to find contractors.

Utilizing a home warranty on rental properties can help to reduce the time and effort when it comes to finding a contractor. Instead of having to head out to find an experienced contractor with a good reputation on an emergency basis, a landlord simply needs to make a claim with their home warranty provider , and they will send someone to their rental property to address the issue as soon as possible. This is much simpler than having to reach out to several contractors to find the most suitable contractor.

Property managers, on the other hand they can cut down on time and stress by bringing a trusted vendor they have already worked with to a house they manage. They know the pricing, work and the history of the vendor. This makes it unnecessary to do a lot of research before choosing the best contractor to do the task. Furthermore, trained vendors tend to be more ethical and kind to tenants, which is important for tenant satisfaction.

Furthermore, getting assistance from a home warranty company can take longer than expected, sometimes taking a few days. Tenants can become dissatisfied if they aren't satisfied with the speed at when repairs are finished. Property managers must act as a mediator between tenants and the homeowner warranty company, which adds to the stress.

In the end, the home warranty option for rental properties can be advantageous as it can save the time and effort of searching for a contractor. Property managers can assign trusted vendors they already know to managed homes, while homeowners can make an claim to their home warranty company and get the issue fixed in a short time.

5. Budget for repairs

Using a home warranty to pay for repairs and replacements of appliances and mechanical systems at home can help budget operating costs easier for rental property owners. The home warranty plan ensures that repairs are more predictable and can help tenants feel more comfortable. This also increases the bottom line. It also offers more convenience, as it provides 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 annual expenses of the homeowner by covering the entire repair or replacement costs of damaged appliances or systems.

6. Protection against landlord liability

A landlord's home warranty protects against landlord liability. It covers skilled repairs to appliances and systems that have failed due to wear and tear or aging. Tenants are less likely to claim hability from landlords because repairs and replacements to appliances and systems are done quickly. Repairs covered by the warranty reduce the need to obtain landlord approval as well as resolve disputes. This decreases the liability of landlords. Additionally, having a home warranty in place may serve as an additional protection against financial loss, as it qualifies as tax-deductible, allowing you to offset rental expenses.

7. You can choose from different warranty companies.

Selecting a provider for a home warranty for rental properties is a difficult decision. It is important to think about plans, costs and reputation of the company, as well as customer support and any additional features. It is recommended to consider the available service plans and add-ons, depth of coverage the plan's cost, its brand reputation, customer support infrastructure, as well as additional options when choosing a provider for your home warranty. It is also important to be aware of the possibility of choosing your own contractor and then upgrade your coverage package. Additionally, consider how simple to transfer your policy 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 important factor. The reputation of the company, its availability and other features must be evaluated equally, and price range is not the main base for selecting a home warranty provider to suit your needs.

Liberty Home Guard offers a assortment of additional options to meet your requirements, such as a saltwater pool, reverse osmosis systems, and pro-series appliances. If you're unavailable to take care of repairs within the normal 30 days of the workmanship guarantee, AFC Home Club offers the option of a plan-length warranty that can provide additional security. HomeServe Specialized plans are the best 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 company with higher coverage caps.

We recommend seeking quotes from at least three companies for home warranties and reading through the terms carefully to be aware of any restrictions or exclusions. This will enable you to make educated choices and help you choose the right home warranty provider for your rental properties.

8. Possibility to avail discounts and other incentives

A home warranty program can be an excellent method to save money on rental properties. These plans offer a convenient and affordable method of fixing major appliances that fail. This can help landlords save cash on regular repairs. The second advantage is that the cost of premiums and service charges of the home warranty plan could be included on tax returns as an operating expense subject to the registration of the landlord. This will decrease their total income and tax burden.

9. Ability to send and track repair claims online

Renters can find home warranty plans extremely helpful as they allow them to repair their home. When a covered item fails or breaks and needs to be repaired, landlords have to make a claim to their warranty company. The warranty provider will dispatch a technician to your rental property to resolve the problem as quickly as they can. This will save landlords time and effort in finding a reliable contractor who can be reached at short notice. By providing expedited service and convenience the home warranty plan helps landlords ensure that their rental property is looked after quickly and efficiently.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from a HomePRO Warranty, such as improved service and customer satisfaction. The HomePRO Warranty reduces service calls because tenants can submit their request directly without having to wait for approval from the landlord. This improves the relationship between landlords and tenants. HomePRO Warranty also eliminates the necessity of maintaining a relationship with numerous suppliers. The warranty covers repairs and replacements of various appliances and systems. Tenants can be assured that they will receive timely and efficient service. Lastly the warranty on your home can help in increasing the rent of the house, allowing landlords to make more money every month.