Why Home Managers Must Focus On Residential Or Commercial Property Administration Guarantee

Published Jan 24, 23
8 min read

What is a home warranty?

A home warranty is a type of service agreement that will pay for the cost of fixing or replacing your home's system and appliances when they fail due to normal wear and wear and tear. Warranty plans do not replace home insurance, which protects your home from damage caused by theft or natural disasters. They're designed to safeguard your home's appliances and systems. They are available for all kinds of homes and are able to lower the costs of replacements and repairs which makes them ideal for both new and existing landlords. A service call fee is an expense which is due to the home warranty provider every time a claim is put into. Most providers do offer coverage for older homes, however some do not cover home items that have preexisting issues.

What are the benefits of using a home warranty to rent properties?

1. Protection against high repair costs

The use of a home warranty on rental properties can help protect against the high cost of repairs by providing expedited service, convenience of one-stop shop and no service charge. This can reduce the time and cost needed to repair your home and also provide financial protection for repairs and replacements that are unexpected. In addition, the insurance coverage for regular maintenance helps increase client and tenant retention because tenants are able to solicit service without the need for approval from landlords and protected appliances and systems can be fixed quickly, which reduces the chance of having negative reviews. All of this can help landlords save money and charge higher rents, making more money for their pockets.

2. Common household appliances covered

What appliances are covered by a home warranty for rentals and what are they covered for? [Expanded list] Refrigerators, dishwashers and clothes dryers, washers for clothes, trash compactors, ranges / cooktopsand ovens, microwaves with built-in ovens with built-in food centers heating systems water heaters, air conditioning and garbage disposals, electrical systems 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 are being made

Having repairs made through the home warranty offered to rental properties provides landlords with many advantages. By covering repairs, maintenance appointments and repairs, landlords are able to be protected from having to pay out money on demand whenever there is a problem. A home warranty program makes it easier for all involved to repair their home by sending an inquiry to the warranty provider , who will then send someone to repair the issue at the rental property. Property management companies can expect an improvement in third-party contractor invoices and insurance costs due to the fact that many repairs and replacements can be completed quickly. A home warranty for rental properties can help tenants and clients retain their clients by solving the primary reason why tenants abandon their homes: maintenance issues. In allowing tenants to seek service without the approval of their landlord as covered, the appliances and systems can be repaired promptly, which means there is less opportunity for negative reviews from frustrated tenants. Home warranties give landlords the most cost-effective and efficient option for repairs to rental properties.

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

A home warranty can be an efficient way to find a contractor. Instead of having to head out and search for a reliable contractor with an emergency basis, a landlord simply needs to make a claim with their home warranty provider and they will send an individual to the rental property to address the issue as soon as is possible. This is much easier than having to contact numerous contractors to find the best contractor.

Property managers on the other hand, can save time and stress by bringing a trusted vendor they have already worked with to manage a home. They are familiar with the prices, the work, and background of the company. It's no longer necessary to search for the best contractor. In addition, contractors who have received training will be more tolerant and ethical to tenants. This is crucial for tenant satisfaction.

Sometimes, it may take days to receive service from a home warranty company. 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 provider, adding to the hassle.

Overall, having a home warranty for rental properties can be advantageous as it can save time and trouble of finding an expert. Property managers can refer reliable vendors to manage their properties. Homeowners can make a claim through their warranty company to have the problem resolved quickly.

5. Budget for repairs

Using a home warranty to help with repairs and replacements for home mechanical systems and appliances can help budget operating expenses easier for property owners who own rental properties. The home warranty plan will make repairs easier and can help tenants feel more comfortable. This also increases the bottom line. The home warranty plan is beneficial as it is a one-stop source for all maintenance and replacement requirements. It also eliminates the need to change money when making service calls. Furthermore having a home warranty can help lower the owner's annual expenses by covering all or most of the expense of repairing and replacing old or damaged equipment and systems.

6. Added protection against landlord liability

A home warranty for landlords guards against liability for landlords. It provides professional repairs to equipment and systems that are failing because of normal wear and tear or aging. Tenants are less likely to be able to sue landlords due to repairs and replacements for appliances and systems are completed swiftly. Repairs covered by the warranty reduce the need to obtain landlord approval and can also settle disputes. This also decreases the liability of landlords. A home warranty may give additional financial security as it's tax-deductible, and aids to reduce rental costs.

7. You can choose among a variety of warranty providers

Choosing a home warranty provider for rental properties is a difficult decision. You must consider costs, industry reputation, customer service and other features. We recommend looking at the plans available for service and add-ons, depth of coverage the plan's cost, its industry reputation, customer support infrastructure, as well as additional features when selecting a provider for your home warranty. You should also think about whether you are able to choose your own contractor, and then upgrade the coverage you have. Additionally, consider how simple it is to transfer your plan from one owner to another.

Our research shows that plan coverage is the most important, followed by customer support. The company's reputation plans, availability of plans and additional features should be evaluated equally. Price should not be the main basis for selecting a home warranty company that is able to meet your requirements.

If, for instance, the rental property you are renting features a saltwater swimming pool, appliances from the pro-series, or a reverse osmosis system Liberty Home Guard has a collection of additional features that might interest you. AFC Home Club provides additional protection if you are unable to fix the problem within the timeframe of the 30-day workmanship warranty. HomeServe specialized plans may be an ideal option for those who are most worried about their rental's utilities and American Home Shield may be the ideal choice for those who'd rather choose a home warranty company with greater coverage limits.

Ultimately, we recommend requesting an estimate from at three providers for home warranties and thoroughly reviewing the policy's terms to be sure that you're aware of any limitations or exclusions from the policies. Doing so will help you make an informed choice and determine the most suitable warranty for your home rental property.

8. You can take advantage of discounts and other benefits

A home warranty plan could be an excellent option to reduce the cost of rental homes. These plans offer a convenient and affordable method of fixing important appliances in the home when they fail. This could save landlords the expense of regular repairs. Another advantage is that the cost of premiums and service charges from the home warranty plan could be included on tax returns as an operating expense, subject to the registration of the landlord. This could lower their income overall and reduce tax burden.

9. Online submission and tracking of repair claims

Home warranty plans for renters are plans extremely helpful as they allow them to repair their home. If an item covered by the warranty is damaged or fails the landlords only need to submit an claim with their warranty company. The provider will then send an expert to the rental home to resolve the problem as quickly as possible, which saves landlords the hassle in searching for a trustworthy contractor at the shortest notice. By providing expedited service and convenience the home warranty plan helps landlords to ensure their rental property is looked after quickly and effectively.

10. Greater tenant satisfaction

Tenants will benefit of the HomePRO Warranty, which includes better service and satisfaction of customers. HomePRO Warranty helps to reduce the number of service calls since tenants can make requests directly, without waiting for the landlord to approve them. This improves the relationships between tenants and landlords. In addition, HomePRO Warranty eliminates the necessity for landlords to deal with multiple suppliers, since the warranty includes repairs and replacements of different appliances and systems. In turn tenants have the peace of mind knowing that their needs will be met quickly and efficiently. A home warranty, which may raise the rental value of the home and is a good opportunity for landlords to earn more every month.