The Significance of Preventive Maintenance in Home Management Warranty

Published Dec 03, 22
8 min read

What is a home warranty?

Home warranties are service agreements that cover the costs of replacing or fixing your home's appliances and systems if they fail because of normal wear and wear and tear. Home warranties are not identical to home insurance , which shields the structure of your home from natural disasters and theft, but instead protect your home's systems and appliances. Home warranties are offered to all types of dwellings and are able to lower the cost of repairs and replacements which makes them ideal for both current and new landlords. The service fee is the amount charged to the home warranty provider per claim. A majority of the providers will provide coverage for older homes, however certain ones do not provide coverage for home appliances that have preexisting issues.

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

1. Protection against high repair costs

A home warranty is used to protect rentals from expensive repair expenses. It gives quick service, convenience, and zero service charges. This reduces the time and money used on repairs and offers financial protection against unexpected repairs and replacements. Additionally, the protection of regular maintenance can increase the likelihood of the retention of clients and tenants, because tenants are able to request service without landlord approval and covered appliances and systems are repaired swiftly, reducing the possibility of negative reviews. All of this can help landlords save money while charging more for rent, thus increasing the amount of money they can put in their pockets.

2. Protection for household appliances that are commonplace

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

3. You can rest assured that repairs will be made

Having repairs made through the warranty of a home for rental properties offers landlords a myriad of advantages. Landlords can avoid having to pay cash on demand for maintenance and repairs. Furthermore, a home warranty plan simplifies the home repair process for everyone involved . submitting a claim to the warranty company. The provider will then send a person to their rental home to resolve the issue. Property management companies will see a decrease in third-party contractor invoices and insurance costs because of the fact that most repairs and replacements are completed in a short time. A home warranty for rental properties can help to increase client and tenant retention by dealing with the most common reason why tenants quit: maintenance problems. In allowing tenants to seek service without the approval of their landlord as covered, the appliances and systems are repaired quickly, resulting in less opportunity for negative feedback from angry tenants. Home warranties give landlords the most cost-effective and efficient option for repairs to rental properties.

4. It helps you save time as well as making it simple to find a contractor.

Using a home warranty for rental properties could reduce time and stress in the search for the right contractor. Instead of having to head out and search for an experienced contractor with a good reputation on very short notice, the landlord just needs to submit a claim to their home warranty provider , and they will dispatch an individual to the rental property to take care of the issue as soon as they can. This can be much easier than having to call several contractors to determine the most suitable one to complete the task.

Property managers can reduce time and hassle by sending an experienced and reliable vendor to oversee a home. They are familiar with the pricing, work and history of the company. It is no longer necessary to spend time searching for the best contractor. Furthermore, trained vendors are more likely to be ethical and respectful to tenants which is essential to ensure the satisfaction of tenants.

Sometimes, it may take several days to get service from a company that offers home warranties. This could result in unhappy tenants, who want their repairs to be completed swiftly. This causes discontent. Property managers are intermediaries between the tenants, the home warranty provider, and property owners.

Overall, having a home warranty on rental properties can be advantageous as it can save time and trouble of finding an expert. Property managers can use trusted contractors they have already worked with to manage homes, and homeowners can file a claim to their home warranty provider and have the issue resolved within a matter of minutes.

5. Budget for repairs

Renters are able to save money using a home warranty to cover repairs and replacements of their home appliances and mechanical systems. The plan for home warranties makes repairs more predictable and helps tenants be happier. It also improves the bottom line. It also provides more convenience as it is an all-in-one solution for all household maintenance repairs and replacement requirements, and eliminating the necessity to exchange money at service calls. A home warranty can reduce the owner's annual costs by covering the full cost of replacing or repairing damaged appliances or systems.

6. Added protection against landlord liability

The use of a home warranty by landlords helps protect against the risk of liability for landlords by offering prompt, professional repairs for appliances and systems that fail due to wear and wear and tear. Tenants are less likely to be able to sue landlords due to repairs and replacements to appliances and systems are done promptly. Repairs covered by the warranty also decrease the need for landlord approval and the need for disputes to be resolved and reduces the chance of liability for landlords. A home warranty could provide additional financial protection as it's tax-deductible, and aids to offset rental costs.

7. The ability to select between various warranty providers

It can be difficult to choose a home warranty service for rental homes. You should consider cost and reputation in the industry, customer service system, as well as other features. When choosing a provider for your home warranty it is recommended to consider the plans for service and add-ons available, cost, industry reputation and customer support infrastructure, as well as other features. It is also important to consider whether you can choose your own contractor and then upgrade your coverage plan. Also, how easy it is to transfer your plan from one person to another.

Based on our research, coverage of plans will be the main factor and customer service should be the second-most important factor. The reputation of the company plans, availability of plans and additional features should all be considered equally. The price range shouldn't be the main basis for selecting a home warranty company that can meet your needs.

If, for instance, your rental includes a saltwater pool pro-series appliances, or reverse osmosis system Liberty Home Guard has a suite of add-ons that may interest you. If you're unavailable to attend to repairs within the normal 30 days of the workmanship guarantee, AFC Home Club offers a plan-length guarantee that may offer an additional level of protection. HomeServe Specialized plans are an ideal option for those most concerned about their rental's utilities and American Home Shield may be the best option for those who prefer an insurance provider for home repairs that has greater coverage limits.

We recommend getting quotes from at least three home warranty companies , and taking the time to read the terms of the agreement to be aware of any limitations or exclusions. Doing so will help you make an informed decision and find the best warranty for your home rental property.

8. You may take advantage of discounts or other incentives

A home warranty plan can be a great way to save money on rental properties. The first is that these plans give you a more convenient and affordable solution to fix major household appliances and systems as they inevitably break down. This can help landlords save the expense of regular repairs. Another benefit is that the service and premium fees associated with the home warranty can be included on tax returns as an operating expense, subject to the registration of the landlord. This will reduce their overall income and tax burden.

9. Online submission and monitoring of repair claims

Warranty plans for home owners can prove useful for rental properties due to simplifying repairs. Landlords need to submit an claim with their warranty company if the covered item fails or breaks. The company will then send technicians to the rental property to address the issue as fast as possible, which saves landlords the time and effort in searching for a trustworthy contractor at very short notice. Home warranty plans enable owners to be sure that their rental property is properly taken care of with rapid service and ease of use.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from a HomePRO Warranty, which includes better service and satisfaction of customers. The HomePRO Warranty reduces service calls since tenants can make request directly without having to wait for the approval of the landlord. This improves the relationship between landlords and tenants. Additionally, HomePRO Warranty eliminates the need for landlords to have to maintain a relationship with several vendors, as the warranty includes repairs and replacements of various appliances and systems. In turn tenants will have the peace of mind knowing that their needs are met promptly and efficiently. A home warranty, which may raise the rental value of the home and is a good opportunity for landlords to earn more money each month.