The Advantages of Specialist Property Administration Warranty for Landlords thumbnail

The Advantages of Specialist Property Administration Warranty for Landlords

Published Jan 14, 23
8 min read

What exactly is an insurance policy for homes?

A home warranty is a kind of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances in the event that they fail because of normal wear and wear and tear. These warranties are not identical to insurance for your home, which protects your home's structure from natural disasters or theft, but instead ensure the security of your home's systems as well as appliances. Home warranties are offered for all types of housing and can be used to lower the cost of replacements and repairs, making them perfect for both current and new landlords. The cost of service is an amount that is paid to the home warranty company for each claim. The majority of providers provide coverage for older homes, however certain ones don't cover items in the home with preexisting conditions.

What are the benefits 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 by offering speedy service, the convenience of a one stop shop, and no service charge. This cuts down on cost and time spent on repair jobs and offers financial protection against repair and replacement costs that are unexpected. In addition, the insurance coverage for regular maintenance helps increase client and tenant retention as tenants are able to request service without landlord approval and protected appliances and systems can be fixed quickly, which reduces the chance of having negative reviews. This can allow landlords to charge lower rent, and also save money.

2. Common household appliances covered

What appliances are covered under the home warranty of rental properties and what do they cover? (Extended list) Refrigerators, dishwashers dryers, clothes washers, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens and built-in food centers heating systems, water heaters, air conditioning electrical systems, garbage disposals smoke detectors, central vacuums, doorbells, plumbing systems, ceiling and exhaust fans sump pumps, septic tanks, spa, pool, as well as garage door openers.

3. You can rest assured that repairs will be done

Having repairs made through a home warranty for rental properties provides landlords with a myriad of advantages. Through covering repairs, maintenance, and replacements, landlords can protect themselves from having to shell out cash at any time something goes wrong. In addition, a home-warranty plan makes the home repair process for everyone involved . sending a claim to the warranty provider, who then sends a technician to the rental property to address the problem. Property management companies can expect a decrease in third-party contractor invoices and insurance expenses due to the fact that a lot of repairs and replacements can be completed in a short time. The home warranty offered for rental homes can help clients and tenants keep their clients by solving the most common reason for tenants to quit: maintenance issues. Tenants are able to request assistance from their landlords without needing to be approved. This allows them to repair systems and appliances quickly. This also decreases the chance of tenants complaining about it. Home warranties provide landlords with an affordable and effective solution to repair rental properties.

4. It reduces time and makes it easy to find a contractor.

A home warranty is an efficient way to find a contractor. Instead of having to go out and find an experienced contractor with a good reputation on short notice, a landlord can simply make a claim with their home warranty company and they will dispatch someone to their rental home to take care of the problem as quickly as is possible. This is much simpler than having to call numerous contractors to find the most suitable contractor.

Property managers, on the other hand they can cut down on time and hassle by sending a trusted vendor they already know to manage a home. They know the price as well as the quality of work and how the vendor has behaved in the past. This means that they don't have to spend time researching and choosing the best contractor to do the job. Additionally, experienced contractors are more likely to be honest and kind to tenants, which is important to ensure the satisfaction of tenants.

In addition, receiving service from a home warranty company may take longer than you expected and can take a few days. This can result in dissatisfied tenants who expect their repairs to be dealt with swiftly. Property managers are required to serve as the middleman between tenants and the homeowner warranty company, which adds to the stress.

In the end, the home warranty option for rental properties can be beneficial because it will save time and hassle of finding an expert. Property managers can send trusted vendors they already know to homes they manage, while homeowners can make an inquiry to their home warranty provider and get the issue fixed in no time.

5. Budget for repairs

Using a home warranty to pay for repairs and replacements to appliances and mechanical systems in your home can help budget operating expenses much easier for landlords of rental properties. The warranty for homes will make repairs easier and helps tenants be happier. It also improves the bottom line. The home warranty is advantageous because it provides a single source for all household maintenance and replacement requirements. It is also a way to not change money when making service calls. A home warranty could reduce the owner's annual costs by covering the full repair or replacement costs of malfunctioning appliances or systems.

6. Additional protection against landlord liability

A landlord's home warranty guards against liability for landlords. It covers professional repairs to equipment and systems that are failing due to normal wear and tear or old age. Tenants are less likely to be able to sue landlords due to repairs and replacements for appliances and systems are done promptly. Covered repairs reduce the need to obtain landlord approval as well as resolve disputes. This further lowers the risk of liability for landlords. Additionally, having a home warranty in place may serve as an additional protection against financial loss since it is tax-deductible, helping to pay for rental costs.

7. You can choose from different warranty companies.

It's not easy to pick a home insurance service for rental homes. It's important to consider the choices for coverage, the cost and reputation of the company, as well as customer support, and any additional features. We recommend looking at the available service plans and extensions, coverage depth, plan cost, brand reputation, customer support infrastructure, as well as additional features when selecting a provider for your home warranty. Also, pay attention to the ability to choose the contractor of your choice, increase your coverage plan, transfer your plan to a different owner, and also cover roof leaks, high-end appliances, exhaust and ceiling fans, and fixtures and faucets.

Based on our research, plan coverage will be the main factor, with customer support as the second most significant factor. The industry reputation as well as plan availability and other features should all be considered equally. Price range should not be the primary factor when choosing a provider of home warranties that is able to meet your requirements.

Liberty Home Guard offers a variety of accessories to meet your requirements, including a saltwater pool, reverse osmosis systems, and pro-series appliances. AFC Home Club provides additional protection if you are unable to repair the issue within the 30 day workmanship guarantee. HomeServe Specialized plans are a good choice for those who are most concerned about their rental's utilities, and American Home Shield may be the most suitable option for those who prefer an insurance provider for home repairs that has higher coverage caps.

We recommend that you request a quote from at least three different home warranty companies and thoroughly reviewing the terms of the plan to be sure that you're aware of all limitations and exclusions in the policies. This will allow you to make educated decisions and assist you choose the right provider of home warranties for the rental properties you own.

8. You may take advantage of discounts and other offers

Using a home warranty plan for rental properties can help save money by two methods. They provide a cost-effective and low-cost way to fix major household appliances as they fail. This can save landlords cash on regular repairs. In addition, depending on the way a landlord is registered, the whole premium and charges of the home warranty plan could be declared as operating expenses on a tax return and thus reduce their total income and thus their tax burden.

9. Online submission and monitoring of repair claims

Renters can find home warranty plans extremely helpful as they help fix their home. The landlord only has to file a claim with their warranty company if a covered item malfunctions or breaks. The provider will then send technicians to the rental property to address the issue as soon as they can, saving landlords the hassle in searching for a trustworthy contractor at the shortest notice. With their speedy service and convenience the home warranty plan helps landlords ensure that their rental property is maintained quickly and effectively.

10. Greater tenant satisfaction

Tenants will benefit of a HomePRO Warranty, such as enhanced service and greater customer satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to send their requests directly without waiting for the landlord to approve them. This helps improve the relationship between tenants and landlords. In addition, HomePRO Warranty eliminates the necessity for landlords to deal with multiple vendors, as the warranty will cover repairs and replacements for various appliances and systems. Tenants can rest assured they will receive timely and efficient service. The home warranty, which may raise the rental value of the home, can be a great opportunity for landlords to earn more money each month.