The Function of Property Management Warranty in Property Repair And Maintenance

Published Jan 10, 23
8 min read

What is a home warranty?

Home warranties are contracts which cover the costs of replacing or fixing the appliances and systems in your home in the event of failure due to normal wear and wear and tear. These warranties are not the same as home insurance which covers the structure of your home from natural disasters or theft however they do ensure the security of your home's systems as well as appliances. All types of housing are suitable to be covered by home warranties. They are able to help lower the costs of repairs or replacements and are feasible for landlords of both types, new and old. The service fee is the amount paid to the home warranty provider per claim. The majority of providers provide coverage for older homes, however certain providers don't cover items in the home with existing conditions.

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

1. Protection against high repair costs

Using a home warranty for rental properties can help protect against the high cost of repairs through fast service, the convenience of one stop shop, and no service charge. This can reduce the amount of time and cost required to repair your property and also provide financial protection for unexpected repairs and replacements. Furthermore, the coverage of regular maintenance helps increase the retention of clients and tenants, as tenants are able to request service without landlord approval and covered appliances and systems are repaired swiftly, reducing the risk of negative reviews. This can help landlords save money and charge higher rent, putting more money in their pockets.

2. Coverage for common household appliances

What appliances are covered under the home warranty of rentals and what are they covered for? (Extended list) Refrigerators, dishwashers dryers, clothes washers trash compactors, ranges / cooktops/ ovens, built-in microwave ovens with built-in food centers heating systems air conditioning, water heaters, 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 be sure that repairs will be completed

Landlords have many benefits from having repairs covered by the home warranty. Landlords can avoid having to pay cash on demand for maintenance and repairs. A home warranty plan will make it simpler for everyone affected to fix their home by sending an claim to the warranty company who will then send a technician to repair the issue at their rental property. Property management companies will experience an improvement in third-party contractor invoices as well as insurance costs due to the fact that many repairs and replacements are completed in a short time. Having a home warranty for rental properties is also a way in enhancing client and tenant retention by addressing the number one reason tenants quit: maintenance problems. When tenants are able to make requests for service with no the approval of their landlord the covered appliances and systems are repaired quickly, resulting in less chance of negative feedback from angry tenants. Home warranties provide landlords with a cost-effective and efficient solution for repairs to rental properties.

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

Utilizing a home warranty on rental properties can help reduce time and stress when it comes to finding the right contractor. Instead of searching for a reliable contractor in an instant, landlords could file a claim through their home warranty provider. They will dispatch someone to their rental property to address the issue as quickly as is possible. This is easier than having to call several contractors to determine the most suitable one for the job.

Property managers however are able to save time and stress by sending a trusted vendor they have already worked with to a managed home. They are familiar with the prices, the work, and history of the company. This means that they don't have to spend time researching and finding the right contractor for the job. Additionally, experienced contractors tend to be more trustworthy and respectful to tenants which is important to ensure the satisfaction of tenants.

Furthermore, getting assistance from a company that offers home warranties can take longer than expected in some cases, taking several days. Tenants might be unhappy if they aren't satisfied by the speed at which repairs are completed. Property managers are required to serve as a mediator between tenants and the homeowner warranty company, adding to the hassle.

In the end, the home warranty option for rental properties can be advantageous since it saves time and trouble of finding a contractor. Property managers can suggest reliable vendors to manage their properties. Homeowners are able to file a claim with their warranty company to have the problem resolved quickly.

5. Budget for repairs

Renters are able to save money using the home warranty plan to cover repairs and replacements for their appliances at home as well as mechanical equipment. A home warranty program helps in making repairs easier to predict, keeping tenants happier, and improving the financial results. It also offers more convenience as it is an one-stop shop for all household maintenance repairs and replacement requirements, and eliminating the need to swap money on service calls. In addition having a home warranty can reduce the annual cost of ownership by covering all or most of the expense of repairing and replacing malfunctioning or old appliances and systems.

6. Added protection against landlord liability

The use of a home warranty by landlords helps protect against landlord liability by providing quick, professional repairs of appliances and systems that fail due to wear and tear. This helps reduce the risk of lawsuits for hability from tenants as repairs and replacement of the systems and appliances are completed quickly. The covered repairs make it less necessary to obtain landlord approval and can also settle disputes. This further decreases the liability of landlords. A home warranty may provide additional financial protection as it's tax-deductible and can help to reduce rental costs.

7. The ability to select between various warranty providers

The selection of a warranty company for your home for rental properties can be a tricky endeavor. You should consider cost and reputation in the industry, customer service, as well as other features. When choosing a home warranty company it is recommended to consider the service plans and additional options available, price, reputation in the industry and the customer support infrastructure in addition to other features. Also, be aware of the possibility of choosing your own contractor and then upgrade your coverage package. Additionally, consider how simple to transfer your plan from one owner to the next.

Based on our research, coverage of plans will be the main factor in the customer support department as the second most significant factor. Reputation in the industry, availability of plans as well as additional features should be rated equally as well as price. Price should not be the primary base for selecting the right home warranty provider to meet your home's requirements.

Liberty Home Guard offers a assortment of additional options to meet your needs, such as 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 timeframe of the 30-day workmanship warranty. HomeServe's specialized plans are a good option for people who are worried about the utilities that are connected to their rental home. American Home Shield is the best choice for those who prefer a higher level of protection.

We recommend seeking quotes from at least three home warranty companies , and reviewing the contract carefully to be aware of any limitations or exclusions. This will help you make educated choices and help you choose the right home warranty provider for the rental properties you own.

8. The ability to benefit from discounts and other incentives

A home warranty plan can be a fantastic method to save money on rental properties. These plans offer a convenient and affordable method of fixing major appliances that fail. This can help landlords save the expense of regular repairs. Another advantage is that the premium and service fees from the home warranty plan may be claimed on a tax return as operating expenses, 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 can be incredibly useful for rental properties due to simplifying the repair process. The landlord only has to file claims with their warranty company if a covered item malfunctions or breaks. The provider will then send technicians to the rental home to resolve the issue as soon as is possible, saving landlords the hassle in searching for a trustworthy contractor on short notice. By providing expedited service and ease of use Home warranty plans can help landlords ensure that their rental property is looked after quickly and efficiently.

10. Greater tenant satisfaction

Tenants will benefit of the HomePRO Warranty, such as improved service and customer satisfaction. HomePRO Warranty helps to reduce customer service calls because tenants are able to make requests directly, without waiting for the landlord's approval the request. This can improve the relationship between landlords and tenant. HomePRO Warranty also eliminates the necessity of maintaining a relationship with numerous vendors. The warranty includes repairs and replacements of various appliances and systems. In turn tenants will have the assurance that their needs are met quickly and effectively. A home warranty, which could boost the rent of the house and is a good way for landlords to make more every month.