The Benefits of Specialist Upkeep Warranty Services for Residential Property Managers

Published Feb 21, 23
8 min read

What is a home warranty?

Home warranties are contracts that cover the cost of replacing or repairing the appliances and systems in your home in the event of failure due to normal wear and tear. Home warranties do not replace home insurance that protects your home from damage caused by theft or natural disasters. They're designed to protect your home's appliances and systems. All types of housing are eligible for home warranties. They are able to help lower the cost of repairs or replacements, and can be affordable for landlords both new as well as old. The service call cost is a fee which is paid to the warranty provider each time a claim is made into. Although most companies offer coverage for older homes, some might not be able to cover items that are in the condition that was previously covered.

What are the advantages of using a home warranty to lease properties?

1. Protection against high repair costs

A home warranty is used to protect rental properties from costly repair costs. It gives quick service, ease of use 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 in the event of unexpected repairs or replacements. In addition, the insurance coverage for regular maintenance aids in increasing tenant and client retention, because tenants are able to request service without landlord approval and covered appliances and systems are fixed quickly, which reduces the risk of negative reviews. This allows landlords to charge less rent, and also save money.

2. Common household appliances are covered

What kind of appliances are covered by an insurance policy for rental properties? (Expanded List) Refrigerators and dishwashers, dryers for clothes and washers for clothes; garbage compactors; cooktops and rangesor ovens; microwaves with built-in ovens with built-in food centers HVAC systems, heating electric 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 repairs will be made

Landlords can benefit of having repairs covered under the warranty on their home. With the coverage of repairs, maintenance appointments and repairs, landlords are able to protect themselves from having to pay cash when something goes wrong. A home warranty program allows everyone involved to repair their house by sending an claim to the warranty provider who will then send someone to fix the problem at the rental property. In addition, since many repairs and replacements are addressed and solved quickly Property management companies can anticipate a reduction in charges for contractors from third parties and insurance costs. A home warranty for rental properties is also a way to improve tenant and client retention by addressing the primary reason that causes tenants to quit: maintenance problems. When tenants are able to seek service without permission from the landlord, covered appliances and systems can be repaired promptly, which means there is less chance of negative feedback from angry tenants. Home warranties provide landlords with the most cost-effective and efficient option to repair rental properties.

4. It saves time and effort of hiring a contractor.

A home warranty can be an important time saver when looking for an expert contractor. Rather than having to go out and search for an experienced contractor with a good reputation on short notice, a landlord can simply send a claim to their home warranty provider , and they will dispatch an individual to the rental property to resolve the issue as soon as is possible. This is more efficient than needing to call multiple contractors to find the right one for the job.

Property managers however they can cut down on time and effort by bringing a trusted vendor they already know to manage a home. They know the prices, the work, and history of the company. It's no longer necessary to look around for the best contractor. Furthermore, contractors who have been properly trained will be more tolerant and ethical to tenants. This is essential for tenant satisfaction.

Sometimes, it may take several days to get service from a company that offers home warranties. Tenants might be unhappy if they are not satisfied by the speed at the time repairs are made. Property managers are required to serve as a mediator between tenants and the homeowner warranty company, adding to the burden.

Overall, having a home warranty for rental properties can be advantageous because it will save time and hassle of finding a contractor. Property managers can send trusted vendors they already know to manage homes, and homeowners can file an inquiry to their warranty company and get the issue fixed within a matter of minutes.

5. Budget for repairs

Renters can save money by using an insurance plan for home repairs and replacements of their appliances at home as well as mechanical equipment. A home warranty can help to make repair costs more predictable, making tenants happy and increasing the bottom line. It also provides more convenience, as it provides an one-stop shop for all household maintenance repairs and replacement requirements, and not having to change money during service calls. Additionally the home warranty could help reduce the owner's annual expenses by covering the majority or all of the cost of repairing and replacing old or damaged appliances and systems.

6. Added protection against landlord liability

A home warranty for landlords helps protect against landlord liability by providing prompt, professional repairs for appliances and systems that break due to age or normal wear and tear. Tenants are less likely claim hability from landlords because the repairs and replacements of appliances and systems are completed swiftly. Repairs covered by the warranty reduce the need to seek approval from landlords as well as resolve disputes. This also decreases the liability of landlords. Furthermore, having a home warranty in place can serve as an additional level of financial security because it's tax-deductible, allowing you to reduce rental costs.

7. You can pick from a variety of warranty companies.

Selecting a provider for a home warranty for rental properties can be a tricky endeavor. You must consider costs and reputation in the industry, customer service system, as well as other features. We suggest considering the available service plans and additional coverage options, the depth of coverage plans, cost of plan, brand reputation, customer support infrastructure, as well as additional features when selecting a home warranty provider. In addition, be aware of the option to select the contractor of your choice, change your coverage plan and transfer your plan to another owner, and cover roof leaks, premium appliance brands, ceiling and exhaust fans, and fixtures and faucets.

Based on our findings, plan coverage is the one that should be considered most important and customer service should be the second most important aspect. Reputation in the industry, availability of plans as well as additional features should be evaluated equally and the price should not be the primary basis for choosing the right home warranty provider for your home's needs.

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 typical 30 days of the workmanship guarantee, AFC Home Club offers an extended-plan guarantee that could provide additional protection. HomeServe special plans could be a good choice for those most worried about their rental's utility lines, and American Home Shield may be the best option for those who prefer a home warranty company with more coverage limits.

We recommend that you request an estimate from at three providers for home warranties and carefully reviewing the plan terms to make sure you're aware of the limitations and exclusions from the policies. This will allow you to make an informed decision and find the best home warranty company for your rental property.

8. Ability to take advantage of discounts and other incentives

Using a home warranty plan for rental properties can reduce costs in two ways. The first is that these plans give you a more convenient and cost-effective solution to repair major household appliances and systems since they will eventually break. This can save landlords money in regular repair costs. In addition, depending on the way the landlord is registered, the whole premium and charges of the home warranty plan can be included as an operating expense on a tax return which will reduce their total income and thus their tax burden.

9. Online submission and tracking of repair claims

Warranty plans for home owners can be extremely useful for rental properties due to simplifying repairs. When a covered item fails or breaks, landlords just have to make an claim to their warranty provider. The warranty provider will dispatch an expert to the rental property to address the issue as fast as they can. This saves landlords time and effort in finding a trustworthy contractor who can be reached at short notice. The Home Warranty plans permit owners to be sure the rental property they lease is properly taken care of through prompt service and convenience.

10. Greater tenant satisfaction

Using a HomePRO Warranty can provide many benefits to tenants with regards to service and satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to send their requests directly without having to wait for the landlord to approve the request. This helps improve the relationships between tenants and landlords. In addition, HomePRO Warranty eliminates the necessity for landlords to keep up with multiple vendorssince the warranty will cover repairs and replacements for various systems and appliances. As a result tenants have the security of knowing that their requirements will be taken care of promptly and efficiently. A house warranty, which could raise the rental value of the home and is a good opportunity for landlords to earn more every month.