Home Administration Service Warranty: The Secret to Stress-Free Home Ownership

Published Feb 24, 23
8 min read

What is a warranty for your home?

Home warranties are a type of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances if they fail because of normal wear and tear. Home warranties are not identical to home insurance , which shields the structure of your home from natural disasters or theft, but instead safeguard your home's systems and appliances. All types of housing are eligible for home warranties. They are able to help lower the cost of repairs and replacements, and can be affordable for landlords new and old. Service call fees are an expense that is paid to the home warranty provider every time a claim is put into. A majority of the providers will offer coverage for older homes, however certain ones do not provide coverage for home appliances with existing conditions.

What are the advantages of using a home warranty for rental 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 with no cost for service. This reduces the amount of time and expense spent on repair jobs and provides financial protection against repair and replacement costs that are unexpected. In addition, the insurance coverage for regular maintenance helps increase the retention of clients and tenants, because tenants are able to solicit service without the need for approval from landlords and the covered appliances and systems are repaired swiftly, reducing the chance of having negative reviews. This can allow landlords to charge less rent and save more.

2. The coverage is for appliances used in the common household

What kind of appliances are covered by the home warranty in rental properties? Refrigerators, dishwashers, clothes dryers and washers for clothes; garbage compactors; cooktops and ranges/ ovens; built-in microwave ovens and built-in food centres; HVAC systems, heating; electric systems; water heaters; garbage disposals, central vacuums, smoke detectors smoke alarms, plumbing systems. Doorbells, ceiling fans, exhaust fans, septic tanks, sump pumps, spas and garage door openers.

3. You can rest assured that repairs will be completed

Landlords can benefit from having repairs covered by the home warranty. Through covering repairs, maintenance appointments and repairs, landlords are able to be protected from having to pay out money when there is a problem. A home warranty policy makes it easier for all who are involved in repairing their house by sending an inquiry to the warranty provider , who will then send an individual to address the issue in their rental property. Additionally, since the majority of repairs and replacements are covered and resolved quickly Property management companies can expect reduced costs for contractors hired by third parties and insurance costs. Having a home warranty for rental properties can help to improve tenant and client retention by addressing the primary reason that causes tenants to leave: maintenance issues. When tenants are able to request service without permission from the landlord as covered, the appliances and systems are repaired promptly, which means there is less opportunity for negative reviews from unhappy tenants. Overall, home warranties provide landlords with a cost effective and effective solution for rental property repairs.

4. It saves you time as well as making it simple to locate a contractor.

A home warranty can be an important time saver when looking for a contractor. Instead of having to search the internet to find a reliable contractor in an instant, landlords could submit a claim at their home warranty provider. They will dispatch someone to their rental home to fix the problem as soon as possible. This is more efficient than having to call several contractors to find the right one to complete the task.

Property managers can reduce time and effort by deploying an experienced and reliable vendor to oversee a home. They know the price, the workmanship and the way the vendor has behaved in the past. There is no need to look around for the best contractor. Furthermore, trained vendors are more likely to be trustworthy and respectful to tenants which is essential to ensure the satisfaction of tenants.

Sometimes, it may take days to receive service from a home warranty provider. This could result in unhappy tenants as they expect that their issues will be addressed quickly. This can cause discontent. Property managers are a middleman between tenants, the home warranty company, and property owners.

A home warranty is a great method to reduce time and avoid the expense of hiring an expert contractor. Property managers can refer reliable contractors to manage the homes. Homeowners are able to submit a claim to their home warranty provider to have the problem resolved quickly.

5. The ability to budget repairs

Renters are able to save money using an insurance plan for home repairs and replacements for their appliances at home and mechanical systems. The home warranty plan makes repairs more predictable and helps tenants be happier. This also increases the bottom line. The home warranty is advantageous as it is a one-stop source for all household maintenance and replacement needs. It also eliminates the need to exchange money during service calls. Additionally having a home warranty can reduce the annual cost of ownership by covering the majority or all of the cost of repairing and replacing old or damaged equipment and systems.

6. Protection against landlord liability

A home warranty for landlords safeguards landlords from liability. It offers professional repairs to appliances and systems that have failed because of normal wear and tear or age. Tenants are less likely be able to sue landlords due to repairs and replacements for appliances and systems are completed quickly. Repairs covered by the warranty also decrease the need for landlord approval and disputes to be resolved, which further reduces the possibility of landlord liability. In addition, having a homeowner's warranty in place can serve as an additional level of financial security because it's tax-deductible, allowing you to offset rental expenses.

7. The ability to select between various warranty providers

It's not easy to select a home warranty provider for rental properties. It is important to think about choices for coverage, the cost, industry reputation, customer support and additional features. When selecting a home warranty provider it is recommended to consider the service plans and additional options available, price, reputation in the industry and the customer support services and other features. Also, pay attention to the ability to select the contractor of your choice, change your coverage package, transfer your plan to another owner, and protect your roof from leaks, premium appliances exhaust and ceiling fans and fixtures and faucets.

Based on our findings, plan coverage is the one that should be considered most important in the customer support department as the second-most important factor. The industry reputation as well as plan availability and other features should all be evaluated equally. Price should not be the sole factor in choosing a provider of home warranties that can meet your needs.

For example, if your rental features a saltwater swimming 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 security in the event that you're unable to make repairs within the 30 day workmanship guarantee. HomeServe's specialized plans are a good alternative for those who are concerned about the utility lines of their rental property. American Home Shield is a better option for those looking for more protection.

Ultimately, we recommend requesting an estimate from at least three different home warranty companies and carefully reading the plan terms to make sure you're aware of any limitations or exclusions that are in the policy. This will enable you to make educated choices and help to select the most suitable provider of home warranties for the rental properties you own.

8. You can take advantage of discounts and other benefits

A home warranty plan could be an excellent method to save money on rental properties. These plans offer a convenient and inexpensive method to repair major household appliances as they fail. This could help landlords save from having to pay for regular repairs. The second advantage is that the cost of premiums and service charges associated with the home warranty could be included on tax returns as an operating expense dependent on the registration of the landlord. This will reduce their overall income and tax burden.

9. Online submission and tracking of repair claims

Renters can find home warranty plans extremely helpful as they allow them to repair their property. If a covered product breaks or malfunctions, landlords just must submit a claim with their warranty provider. The warranty provider will dispatch technicians to your rental property to resolve the issue as fast as they can. This will save landlords time and effort finding a reliable contractor who is available on the shortest notice. Through providing speedy service and convenience, home warranty plans help landlords to ensure their rental property is looked after quickly and efficiently.

10. Greater tenant satisfaction

Tenants will benefit from a HomePRO Warranty, which includes better service and satisfaction of customers. HomePRO Warranty helps to reduce customer service calls because tenants are able to send their requests directly without having to wait for approval from the landlord them. This can improve the relationship between landlords and tenant. Furthermore, HomePRO Warranty eliminates the necessity for landlords to keep up with multiple suppliers, since the warranty covers repairs and replacements for various appliances and systems. Therefore, tenants can enjoy the assurance that their needs are met promptly and effectively. A house warranty, which could boost the rent of the house as well, is a fantastic option for landlords who want to earn more money each month.