Property Monitoring Service Warranty 101: Recognizing the Advantages

Published Feb 24, 23
8 min read

What is a home warranty?

A home warranty is a kind of service agreement that will cover the cost of fixing or replacing your home's system and appliances in the event that they fail due to wear and tear. Home warranties are not identical to insurance for your home, which protects your home's structure against natural disasters and burglaries however they do protect your home's systems and appliances. All kinds of homes are qualified for warranty for homes. They can help reduce the cost of repairs and replacements and are affordable for landlords new and old. Service call fees are an expense that is paid to the warranty provider each time a claim is put into. While the majority of providers offer coverage for older homes, some might not cover certain items with the condition that was previously covered.

What are the benefits of having a home guarantee for rental properties?

1. Protection against high repair costs

A home warranty can be used to shield rental properties from costly repair costs. It offers quick service, ease of use and no service fees. This can reduce the cost and time spent on repair jobs and provides financial protection against repair and replacement costs that are unexpected. Furthermore, the coverage of regular maintenance aids in increasing the retention of clients and tenants, because tenants are able to make requests for service with no landlord approval and protected appliances and systems can be repaired swiftly, reducing the possibility of negative reviews. This can allow landlords to charge lower rent and save more.

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

What appliances are covered by the warranty on homes for rentals and what do they cover? Refrigerators, dishwashers dryers, clothes washers trash compactors, cooktops and rangesor ovens, microwave built-in ovens and built-in food centers heating systems air conditioning, water heaters electrical systems, garbage disposals, smoke detectors, central vacuums, doorbells, plumbing systems ceiling and exhaust fans, the sump pump, septic tank, spa, pool, and garage door openers.

3. Relax knowing that repairs will be made

Landlords enjoy many advantages of having repairs covered under the home warranty. Landlords do not have to pay cash-on-demand for maintenance and repairs. A home warranty policy allows everyone involved to repair their house by sending an claim to the warranty provider who will then send an individual to repair the issue in their rental property. Property management companies will see an improvement in the amount of invoices from third-party contractors and insurance costs because of the fact that most repairs and replacements are done quickly. Having a home warranty for rental properties can help in enhancing client and tenant retention by addressing the most common reason why tenants quit: maintenance problems. Tenants can request service from their landlords and not need to be approved. This permits them to fix systems and appliances quickly. Also, it reduces the likelihood of tenants complaining about it. In the end, home warranties provide landlords with an affordable and efficient solution to rental property repairs.

4. It helps you save time as well as making it simple to locate contractors.

A home warranty that covers rental properties can to reduce the time and effort when trying to find an expert. Instead of having to search the web for a reliable contractor an instant, landlords could file a claim through their home warranty company. They will send someone to their rental home to fix the problem as soon as is possible. This is much easier than having to contact multiple contractors to locate the best contractor.

Property managers however are able to save time and effort by bringing a reliable vendor they have already worked with to a house they manage. They are familiar with the cost, work schedule and the history of the vendor. There is no need to search for the perfect contractor. Additionally, vendors who have been trained are more likely be kind and ethical towards tenants. This is crucial for tenant satisfaction.

Additionally, getting service from a home warranty provider can take longer than expected and can take a few days. Tenants can become dissatisfied if they are not satisfied with the speed at the time repairs are made. This can cause frustration. Property managers are a middleman between tenants, the home warranty provider, and property owners.

Overall, using the home warranty option for rental properties can be advantageous since it saves the time and effort of searching for contractors. Property managers can assign trusted vendors they already know to manage homes, and homeowners can make a claim to their home warranty company and get the issue fixed in no time.

5. Budget for repairs

Renters can save money by using the home warranty plan to cover repairs and replacements of their appliances at home and mechanical systems. The warranty for homes makes repairs more predictable and helps tenants be happier. This also increases the bottom line. It also provides more convenience, as it provides a one stop shop for all maintenance and replacement requirements, as well as eliminating the need to exchange money at service calls. In addition having a home warranty could help reduce the owner's annual expenses by covering all or a large portion of the cost of repairing and replacing aging or malfunctioning equipment and systems.

6. Protection against landlord liability

A home warranty for landlords protects against landlord liability. It provides professional repairs to equipment and systems that are failing due to wear and tear or old age. Tenants are less likely to claim hability from landlords because repairs and replacements for appliances and systems can be completed swiftly. Repairs covered by the warranty reduce the need to get approval from the landlord as well as resolve disputes. This further reduces landlord liability. Additionally, having a home warranty in place may serve as an additional level of financial security since it is tax-deductible, helping to reduce rental costs.

7. You can choose from a variety of warranty providers

The selection of a warranty company for your home for a rental property is a difficult decision. It's important to consider the choices for coverage, the cost, industry reputation, customer support, and any additional features. We recommend looking at the various plans for service, add-ons, depth of coverage plans, cost of plan, industry reputation, customer support infrastructure, and other features when selecting a home warranty provider. You should also think about whether you are able to choose your own contractor, and then upgrade your coverage plan. Additionally, consider how simple it is to transfer your policy from one person to another.

Based on our findings, plan coverage will be the main factor, with customer support as the second-most important factor. The reputation of the company, its availability and other features must be evaluated equally and the price is not the main basis for choosing the right home warranty provider for your home's needs.

For instance, if the rental property you are renting features a saltwater swimming pool, pro-series appliances, or a reverse osmosis device, Liberty Home Guard has a range of accessories that could appeal to you. AFC Home Club provides additional security in the event that you're unable to fix the problem within the timeframe of the 30-day workmanship warranty. The HomeServe plans that are tailored to your needs can be a great alternative for those who are concerned about the utility lines of their rental property. American Home Shield is an ideal choice for those who prefer more protection.

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 any limitations or exclusions from the policies. This will allow you to make an informed choice and choose the best warranty for your home rental property.

8. You may take advantage of discounts and other benefits

A home warranty program can be an excellent method to save money on rental properties. In the first place, these plans provide a more convenient, low-cost solution for fixing important household appliances and systems as they inevitably break down. This can help landlords save cash on regular repairs. Secondly, depending on how the landlord is registered, the total premium and service costs of the home warranty plan could be claimed as an operating expense on a tax return, thus reducing the total amount of income they earn and tax burden.

9. Ability to submit and track repair claims online

Renters can find home warranty plans extremely helpful as they help fix their home. If a covered product breaks or malfunctions and needs to be repaired, landlords must submit a claim with their warranty provider. The company will send a technician to the rental property to address the problem as quickly as possible. This can save landlords time and effort finding a trustworthy contractor who can be reached at the shortest notice. Home warranty plans allow landlords to ensure that their rental property is taken care of through rapid service and ease of use.

10. Greater tenant satisfaction

Tenants will benefit from the HomePRO Warranty, which includes better service and satisfaction of customers. HomePRO Warranty helps to reduce customer service calls because tenants are able to submit requests directly, without having to wait for the landlord to approve them. This improves the relationships between tenants and landlords. HomePRO Warranty also eliminates the necessity of maintaining a relationship with multiple suppliers. The warranty will cover repairs and replacements for various appliances and systems. Tenants can rest assured that they will receive speedy and effective service. Additionally having a home warranty can also help to increase the rental cost of the property, allowing landlords to make more money each month.