Building Management Guarantee vs Home Service Warranty: Which is Best for You? thumbnail

Building Management Guarantee vs Home Service Warranty: Which is Best for You?

Published Feb 24, 23
8 min read

What is a home warranty?

Home warranties are a service agreement that will pay for the cost of fixing or replacing your home's system and appliances in the event that they fail due to 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 the home's appliances and systems. They are available for all kinds of homes and can be used to minimize the costs of replacements and repairs, making them perfect for both existing and new landlords. Service call fees are a fee that is paid to the home warranty provider each time a claim is put into. The majority of providers offer coverage for older homes, however some don't cover items in the home that have preexisting issues.

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

1. Protection against high repair costs

The use of a home warranty on rental properties can protect against high repair costs through fast service, the convenience of one-stop shop and there is no charge for service. This will reduce the amount of time and cost required to repair your property and provide financial protection for unexpected repairs and replacements. Regular maintenance coverage helps to improve the retention of tenants and clients. Tenants can ask for service without requiring approval from the landlord. The covered appliances and systems are also fixed swiftly, which lowers the likelihood of receiving negative reviews. This can help landlords save money while charging higher rents, putting more money in their pockets.

2. Protection for household appliances that are commonplace

What kinds of appliances are covered under an insurance policy for rental properties? Refrigerators, dishwashers, clothes dryers, clothes washers, trash compactors, cooktops and rangesor ovens, microwave built-in ovens and built-in food centers heating systems, water heaters, air conditioning and electrical systems, garbage disposals, smoke detectors, central vacuums, doorbells, plumbing systems ceiling and exhaust fans septic tank, sump pump spa, pool and garage door openers.

3. You can be sure that the repairs will be made

Landlords can benefit from having repairs covered by a warranty on their home. By covering repairs, maintenance appointments and even replacements, landlords save themselves from having shell out cash when something goes wrong. A home warranty program allows everyone involved to repair their property by submitting a claim to the warranty provider , who will then send an individual to fix the problem in their rental property. Furthermore, because many repairs and replacements are easily covered and resolved Property management companies can expect reduced costs for contractors hired by third parties and insurance costs. A home warranty for rental properties can help to increase client and tenant retention by addressing the number one reason tenants quit: maintenance problems. In allowing tenants to seek service without landlord approval, covered appliances and systems can be repaired quickly, resulting in less chance of negative reviews from unhappy tenants. In the end, home warranties provide landlords with a cost-effective and efficient solution for rental property repairs.

4. Reduces the time and effort involved in the search for a contractor.

A home warranty could be a time-saver when searching for a contractor. Rather than having to go out and search for a reputable contractor on very short notice, the landlord simply needs to make a claim with their home warranty company and they will send an individual to the rental property to take care of the issue as soon as is possible. This can be much easier than having to contact multiple contractors to determine the most suitable one to complete the task.

Property managers can reduce time and stress by hiring a trusted vendor to manage the property. They know the price as well as the quality of work and how the vendor has conducted themselves over the years. This means that they don't have to do a lot of research before selecting the best contractor to do the job. In addition, trained contractors are more likely to be honest and kind to tenants, which is crucial to the tenant's satisfaction.

Sometimes, it can take several days to get service from a home warranty company. Tenants might be unhappy if they aren't satisfied by the speed at which repairs are completed. This can cause anger. Property managers are an intermediary between tenants, the home warranty company, and property owners.

Overall, using a home warranty on rental properties can be advantageous as it can save the time and effort of searching for an expert. Property managers can suggest reliable vendors to manage their the homes. Homeowners can submit a claim to their warranty company for the issue to be resolved promptly.

5. Budget for repairs

A home warranty that can help with repairs and replacements of appliances and mechanical systems at home will make planning operating expenses easier for property owners who own rental properties. A home warranty plan helps in making repairs easier to predict, keeping tenants happier, and improving the overall bottom line. The home warranty plan is convenient as it is a one-stop source for all household maintenance and repair needs. It also eliminates the need to swap money in service calls. A home warranty can reduce the annual expenses of the homeowner by covering the full cost of replacing or repairing damaged appliances or systems.

6. Protection against landlord liability

Using a home warranty for landlords protects them from landlord liability through rapid, professional repairs to appliances and systems that fail due to age or normal wear and tear. Tenants are less likely be able to sue landlords due to the repairs and replacements of appliances and systems are completed quickly. The covered repairs can also lessen the need for landlord approval and disputes that need to be settled and reduces the possibility of landlord liability. A home warranty could provide additional financial protection as it's tax-deductible and can help to offset rental costs.

7. You can choose from a variety of warranty providers

It can be difficult to pick a home insurance provider for rental properties. It is important to consider costs as well as the reputation of the company, its customer service as well as other features. We recommend looking at the various plans for service, add-ons, depth of coverage the plan's cost, its brand reputation, customer support infrastructure, and other options when choosing the right home warranty company. In addition, pay attention to the ability to select the contractor of your choice, increase your coverage package and change your policy to a different owner, and also cover roof leaks, premium appliances, exhaust and ceiling fans, and fixtures and faucets.

Our research shows that plan coverage is most crucial factor, then customer service. The company's reputation as well as plan availability and other features should be evaluated equally. Price range should not be the primary factor when choosing a provider of home warranties that is able to meet your requirements.

For example, if your rental features a saltwater swimming pool, appliances from the pro-series, or a reverse osmosis device, Liberty Home Guard has a range of accessories that could appeal to you. If you're not able to attend to repairs within the standard 30-day guarantee on workmanship, AFC Home Club offers a plan-length guarantee that may give you additional protection. HomeServe specialized plans may be an ideal option for those most worried about their rental's utility lines as well as American Home Shield may be the best option for those who prefer an insurance provider for home repairs that has more coverage limits.

We recommend having quotes from at minimum three companies for home warranties and reading through the terms carefully to ensure you are aware of any exclusions or limitations. By doing this, you can make an informed choice and determine the most suitable home warranty company for your rental property.

8. Ability to take advantage of discounts and other incentives

A home warranty program can be a great option to reduce the cost of rental homes. First, these plans can give you a more convenient and cost-effective solution to repair major household appliances and systems because they are likely to break. This can save landlords cash on regular repairs. The other benefit is that the service and premium fees from the home warranty plan could be included on tax returns as an operating expense, subject to the landlord's registration. This will decrease their total income and tax burden.

9. Online submission and monitoring of repair claims

Renters will find their home warranty plans to be extremely beneficial since they help repair their home. If an item covered by the warranty fails or breaks the landlords only need to submit an insurance claim with their warranty provider. The warranty provider will send an expert to the rental property to fix the problem as quickly as possible, which saves landlords the time and effort of searching for a reputable contractor on very short notice. The Home Warranty plans permit landlords to make sure that their rental property is taken care of with quick service and convenience.

10. Greater tenant satisfaction

Tenants can benefit from a variety of benefits from a HomePRO Warranty, which includes enhanced service and greater customer satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to make requests directly, without having to wait for approval from the landlord them. This improves the relationship between landlords and tenant. Additionally, HomePRO Warranty eliminates the requirement for landlords to maintain a relationship with several suppliers, since the warranty will cover repairs and replacements for different appliances and systems. Tenants can rest assured that they will receive timely and efficient service. A home warranty, which may increase the property's rental price and is a good option for landlords who want to earn more every month.