The Benefits of Building Administration Guarantee for Rental Residences

Published Feb 24, 23
8 min read

What is a warranty for your home?

Home warranties are a kind of service agreement that will pay for the cost of fixing or replacing your home's systems and appliances in the event that they fail due to wear and tear. Home warranties are not like home insurance which covers the structure of your home from natural disasters and burglaries and damage, instead they safeguard your home's systems and appliances. Home warranties are offered for all kinds of homes and can help lower the cost of repairs and replacements, making them perfect for both current and new landlords. The cost of service is the amount charged to the home warranty provider per claim. While most providers provide coverage for older homes, a few might not cover certain items with preexisting conditions.

What are the benefits of having a home warranty in order for rental properties?

1. Protection against high repair costs

A home warranty can be utilized to safeguard rental properties from costly repair cost. It provides fast service, convenience, and zero service charges. This will reduce the amount of time and expense needed to repair your home and provide financial protection in the event of unexpected repairs or replacements. Regular maintenance can help retain tenants and clients. Tenants can request service without the need for approval from landlords. The covered appliances and systems are also fixed promptly, which decreases the likelihood of receiving negative reviews. This allows landlords to charge lower rent, and also save money.

2. Common household appliances are covered

What kinds of appliances are covered by an insurance policy for rental properties? [Expanded List] Refrigerators and dishwashers, dryers for clothes and washers for clothes; garbage compactors; cooktops and ranges/ ovens; built-in microwave ovens and built-in food centres; heating systems; air conditioning; water heaters; electrical systems garbage disposals; smoke detectors, central vacuums smoke alarms, plumbing systems. Doorbells and ceiling fans, exhaust fans sump pumps, septic tanks spas, garage door openers.

3. You can be sure that repairs will be done

Landlords can benefit when they have repairs covered by the warranty on their home. The landlords don't have to pay cash on demand for maintenance and repairs. A home warranty policy allows everyone affected to fix their house by sending a claim to the warranty provider who will then send an individual to address the issue at the rental property. Additionally, since most repairs and replacements can be addressed and solved quickly and efficiently, property management companies will see a decrease in invoices for third-party contractors and insurance costs. A home warranty for rental properties can help in enhancing client and tenant retention by dealing with the number one reason tenants move out: maintenance issues. In allowing tenants to request service without the approval of their landlord, covered appliances and systems are repaired promptly, which means there is less chance of negative reviews from unhappy tenants. Home warranties provide landlords with the most cost-effective and efficient option to repair rental properties.

4. Saves time and hassle of hiring a contractor.

Utilizing a home warranty on rental properties can reduce time and stress in the search for the right contractor. Instead of searching the internet for a reliable contractor in an instant, landlords could make a claim with their home warranty provider. They will send a person to their rental home to fix the issue as quickly as possible. This is much easier than having to reach out to multiple contractors to locate the right contractor.

Property managers, on the other hand 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 cost, work schedule and background of the vendor. This means that they don't have to spend time researching and choosing the best contractor for the task. Additionally, experienced contractors tend to be more ethical and kind to tenants, which is crucial for tenant satisfaction.

In addition, receiving service from a home warranty company can take longer than expected and can take a few days. This can result in dissatisfied tenants as they expect their repairs to be completed quickly. This can cause anger. Property managers serve as an intermediary between tenants, the homeowner warranty company, and property owners.

A home warranty can be a great method to reduce time and avoid the hassle of hiring contractors. Property managers can use trusted vendors they already know to managed homes, while homeowners can file an claim to their home warranty company and have the issue resolved in no time.

5. The ability to budget repairs

Renters can save money by using a home warranty to cover repairs and replacements of their appliances at home and mechanical systems. The warranty for homes will make repairs easier and can help tenants feel more comfortable. This also increases the bottom line. The home warranty plan is convenient because it provides a single source for all maintenance and repair needs. It can also reduce the requirement to exchange money during service calls. A home warranty can cut down the annual expenses of the homeowner by covering the total repair or replacement costs of broken appliances or systems.

6. Additional protection from landlord liability

Using a home warranty for landlords helps protect against the risk of liability for landlords by offering quick, professional repairs of appliances and systems that fail due to wear and tear. This can reduce the possibility of hability lawsuits from tenants since repairs and replacement of the systems and appliances are taken care of promptly. The covered repairs also reduce the requirement for approval from landlords and the need for disputes to be resolved as well as reducing the chance of liability for landlords. Additionally, having a home warranty in place may serve as an additional layer of financial protection because it's tax-deductible, helping to pay for rental costs.

7. The ability to select between various warranty providers

It can be difficult to pick a home insurance service for rental homes. It is important to think about coverage options, cost and reputation of the company, as well as customer support system, and additional features. We suggest considering the available service plans and add-ons, depth of coverage the plan's cost, its industry reputation, customer support infrastructure, and additional options when choosing a provider for your home warranty. You should also be aware of the possibility of choosing your own contractor, and then upgrade your coverage package. Also, how easy to transfer your plan from one person to another.

Based on our research, plan coverage is the one that should be considered most important, with customer support as the second most significant factor. Reputation in the industry, availability of plans as well as additional features should be equally rated, and price range shouldn't be the sole factor in choosing the right home warranty provider to suit your needs.

Liberty Home Guard offers a assortment of additional options to meet your requirements, such as a saltwater pool reverse osmosis system and pro-series appliances. AFC Home Club provides additional protection if you are unable to make repairs within the 30 day workmanship guarantee. HomeServe's specialized plans are a good option for people who are worried about the utilities in their rental property. American Home Shield is a better option for those seeking more coverage.

We recommend having quotes from at minimum three home warranty companies , and taking the time to read the terms of the agreement to be aware of any restrictions or exclusions. By doing this, you can make an informed choice and choose the best home warranty company for your rental property.

8. The ability to benefit from discounts and incentives

Utilizing a home warranty for rental properties could help save money by two methods. First, these plans can offer a convenient, affordable solution to fix major household appliances and systems since they will eventually break. This could save landlords money in regular repair costs. In addition, depending on the way a landlord is registered, the entire premium and service charges of the home warranty program can be included as an operating expense in a tax return which will reduce their total income, and therefore their tax burden.

9. Ability to submit and track repair claims online

Home warranty plans can be incredibly beneficial for rental properties, by simplifying the repair process. When a covered item breaks or malfunctions the landlords only have to make an claim to their warranty company. The warranty provider will dispatch a technician to your rental property to resolve the problem as quickly as possible. This will save landlords time and energy in finding a reliable contractor who can be reached on short notice. By providing expedited service and convenience the home warranty plan helps landlords to ensure their rental property is maintained quickly and effectively.

10. Greater tenant satisfaction

Using a HomePRO Warranty could provide a variety of benefits for tenants, both with regards to customer service and satisfaction. HomePRO Warranty helps to reduce service calls as tenants can make requests directly, without waiting for the landlord's approval the request. This improves the relationship between landlords and tenant. 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. As a result tenants have the security of knowing that their requirements will be met promptly and efficiently. The house warranty, which could raise the rental value of the home as well, is a fantastic option for landlords who want to earn more money each month.