The Advantages and disadvantages of Building Monitoring Guarantee for Landlords

Published Feb 24, 23
8 min read

What is a warranty for your home?

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. These warranties are not the same as home insurance which covers your home's structure against natural disasters and theft, but instead protect your home's systems and appliances. They are available for all types of housing and can help minimize the cost of replacements and repairs and are therefore ideal for both new and existing landlords. The cost of service is an amount that is due to the warranty company per claim. While most providers cover older homes, some might not cover certain items with preexisting conditions.

What are the benefits of having a home warranty in order to rent properties?

1. Protection against high repair costs

Using a home warranty for rental properties can guard against the high cost of repairs through fast service, the convenience of one stop shop, and there is no charge for service. This cuts down on time and money that is spent on repair work and offers financial protection against repair and replacement costs that are unexpected. Regular maintenance can help retain tenants and clients. Tenants are able to request services without requiring approval from the landlord. The covered appliances and systems are also fixed swiftly, which lowers the likelihood of receiving negative reviews. All of this helps landlords save money while charging higher rent, putting more money in their pockets.

2. Protection for household appliances that are commonplace

What types of appliances are covered under an insurance policy for rental properties? [Expanded list] Refrigerators, dishwashers and clothes dryers, washers for clothes, trash compactors, cooktops and ranges/ ovens, built-in microwave ovens and built-in food centers heating systems, air conditioning, water heaters, garbage disposals, electrical systems smoke detectors, central vacuums, plumbing systems, doorbells, exhaust and ceiling fans, sump pumps, septic tanks spa, pool as well as garage door openers.

3. You can be sure that repairs will be made

Landlords can benefit of having repairs covered under a home warranty. The landlords don't have to pay cash on demand for repairs and maintenance. A home warranty program makes it easier for all who are involved in repairing their property by submitting an inquiry to the warranty provider who will then send a technician to address the issue at the rental property. In addition, since the majority of repairs and replacements are covered and resolved quickly, property management companies can anticipate a reduction in invoices for third-party contractors as well as insurance costs. The home warranty offered for rental homes can help tenants and clients retain their clients by solving the main reason that tenants leave: maintenance problems. When tenants are able to seek service without landlord approval as covered, the appliances and systems can be repaired quickly, resulting in less chances of receiving negative reviews from frustrated tenants. Home warranties provide landlords with a cost-effective and efficient solution to repair rental properties.

4. It reduces time and makes it easier to locate a contractor.

A home warranty can be a time-saver when searching for contractors. Instead of searching the web for a reliable contractor an instant, landlords could submit a claim at their home warranty company. They will send a person to their rental property to resolve the issue as quickly 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, on the other hand are able to save time and stress by bringing a reliable vendor they already know to manage a home. They know the cost, work schedule and the history of the company. This means that they don't have to research and finding the right contractor to do the task. In addition, contractors who have received training will be more tolerant and trustworthy to tenants. This is important for tenant satisfaction.

Furthermore, getting assistance from a home warranty company can take longer than expected and can take a few days. This can result in dissatisfied tenants who expect their repairs to be addressed quickly. This causes anger. Property managers act as a middleman between tenants, the homeowner 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 contractors. Property managers can assign trusted vendors they already know to managed homes, while homeowners can make a claim to their home warranty provider and have the issue resolved in no time.

5. Ability to budget repairs

Renters can save money by utilizing a home warranty to cover repairs and replacements of their home appliances as well as mechanical equipment. The home warranty plan ensures that repairs are more predictable and can help tenants feel more comfortable. It also boosts the bottom line. It also offers more convenience by providing an one-stop shop for all home maintenance repairs and replacement requirements, and eliminating the necessity to change money during service calls. Additionally having a home warranty could help reduce the cost of homeowner's insurance by covering the majority or all of the expense of repairing and replacing aging or malfunctioning appliances and systems.

6. Protection against landlord liability

The use of a home warranty by landlords protects them from landlord liability by providing quick, professional repairs of appliances and systems that break due to age or normal wear and wear and tear. This can reduce the possibility of lawsuits arising from hability claims by tenants as repairs and replacement of the appliances and systems are handled quickly. Repairs covered by the warranty reduce the need to get approval from the landlord as well as resolve disputes. This also reduces landlord liability. Additionally, having a home warranty in place can serve as an additional protection against financial loss, as it qualifies as tax-deductible, allowing you to pay for 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 isn't an easy task. You must consider costs and reputation in the industry, customer service and other features. We suggest considering the various plans for service, additional coverage options, the depth of coverage plans, cost of plan, industry reputation, customer support infrastructure, and additional options when choosing a provider for your home warranty. It is also important to think about whether you are able to choose your own contractor and upgrade the coverage you have. Also, how easy to transfer your plan from one person to the next.

Our research has shown that plan coverage is the most important, then customer service. The reputation of the company, its availability, and additional features should be evaluated equally, and price range should not be the primary factor in choosing the best home warranty company to meet your home's requirements.

For example, if your rental features a saltwater swimming pool, pro-series appliances, or a reverse osmosis system, Liberty Home Guard has a collection of additional features that might interest you. AFC Home Club provides additional protection if you are unable to fix the problem within the 30 day workmanship guarantee. HomeServe Specialized plans are the best option for those who are concerned about their rental property's utility lines and American Home Shield may be the best option for those looking to choose a home warranty provider with more coverage limits.

Ultimately, we recommend requesting a quote from at least three home warranty providers and carefully reading the policy's terms to be sure that you're aware of all limitations and exclusions in the policies. This will allow you to make an informed choice and find the best warranty for your home rental property.

8. The ability to benefit from discounts and incentives

A home warranty program can be an excellent option to save money on rental properties. The first is that these plans provide a more convenient, affordable solution to fix important household appliances and systems because they are likely to break. This can save landlords money on regular repairs. Secondly, depending on how the landlord is registered, the entire premium and service charges from the home warranty plan can be included as operating expenses on tax returns and thus reduce the total amount of income they earn, and therefore their tax burden.

9. Ability to make repairs and submit them online

Warranty plans for home owners can be incredibly beneficial for rental properties, by simplifying repairs. When a covered item breaks or malfunctions and needs to be repaired, landlords have to make an insurance claim with their warranty provider. The provider will send an expert to the rental property to address the issue as soon as is possible. This will save landlords time and effort in finding a trustworthy contractor who can be reached at short notice. Home warranty plans allow owners to be sure the rental property they lease is taken care of by providing quick service and convenience.

10. Greater tenant satisfaction

Tenants can enjoy many benefits of the HomePRO Warranty, including improved service and customer satisfaction. The HomePRO Warranty reduces service calls since tenants can make requests directly without waiting for the approval of the landlord. This improves the relationships between tenants and landlords. HomePRO Warranty also eliminates the need to maintain a relationship with multiple suppliers. The warranty covers repairs and replacements of various systems and appliances. Tenants can rest assured that they will receive prompt and efficient service. A house warranty, which can increase the property's rental price as well, is a fantastic way for landlords to make more every month.