The Importance of Preventive Maintenance in Building Monitoring Service Warranty

Published Feb 24, 23
8 min read

What is a home warranty?

Home warranties are a service agreement that covers the cost of repairing or replacing your home's systems and appliances if they fail due to normal wear and tear. Warranty plans do not replace home insurance that protects your home from damage caused by theft or natural disasters. They are designed to protect your home's appliances as well as systems. They are available for all types of housing and can help lower the costs of repairs and replacements which makes them ideal for both current and new landlords. Service call fees are a fee that is paid to the warranty provider each time a claim is put in. Most providers do offer coverage for older homes, however certain ones do not provide coverage for home appliances that have preexisting issues.

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

1. Protection against high repair costs

Using a home warranty for rental properties can guard against the high cost of repairs by providing expedited service, convenience of one-stop shop and with no cost for service. This reduces the amount of time and expense required to repair your property and provide financial protection for repairs and replacements that are unexpected. Furthermore, the coverage of regular maintenance can increase the likelihood of the retention of clients and tenants, as tenants are able to make requests for service with no landlord approval and the covered appliances and systems are repaired quickly, reducing the possibility of negative reviews. All of this can help landlords save money and charge higher rent, making more money for their pockets.

2. Coverage for common household appliances

What types of appliances are covered by the home warranty in rental properties? [Expanded list] Refrigerators, dishwashers dryers, clothes washers trash compactors, ranges / cooktops/ ovens, built-in microwave ovens and built-in food centers heating systems, air conditioning, water heaters electrical systems, garbage disposals central vacuums, smoke detectors, doorbells, plumbing systems exhaust and ceiling fans, septic tank, sump pump, spa, pool, and garage door openers.

3. You can be sure that repairs will be done

Repairs made under the warranty of a home for rental properties provides landlords with numerous advantages. Landlords do not have to pay cash on demand for maintenance and repairs. Additionally, a home warranty program makes it easier to complete the home repairs process for everyone involved by making a claim with the warranty company, who will then send a person to their rental property to address the issue. In addition, since most repairs and replacements can be addressed and solved quickly, property management companies can anticipate a reduction in charges for contractors from third parties and insurance costs. Having a home warranty for rental properties is also a way to increase client and tenant retention by tackling the number one reason tenants quit: maintenance problems. Tenants can seek assistance from their landlords and not need to be approved. This permits them to fix systems and appliances quickly. It also reduces the chance of tenants complaining about the service. Home warranties give landlords an affordable and effective solution for repairs to rental properties.

4. It saves time and effort of finding a contractor

Utilizing a home warranty on rental properties can to reduce the time and effort in the search for a contractor. Instead of having to search the web to find a reliable contractor in an instant, landlords could file a claim through their home warranty provider. They will send someone to their rental home to fix the issue as quickly as is possible. This could be easier than needing to call multiple contractors to determine the most suitable one to complete the task.

Property managers on the other hand they can cut down on time and hassle by bringing a trusted vendor they already know to a house they manage. They know the cost, work schedule and the history of the vendor. This eliminates the need to do a lot of research before choosing the best contractor for the job. In addition, contractors who have been properly trained will be more tolerant and ethical to tenants. This is important for tenant satisfaction.

Sometimes, it may take days to receive assistance from a home warranty provider. Tenants can become dissatisfied if they are not satisfied by the speed at when repairs are finished. Property managers are required to serve as a middleman between the tenants and the homeowner warranty company, adding to the stress.

A home warranty could be an ideal option to cut down on time and avoid the expense of hiring a contractor. Property managers can recommend reliable vendors to manage their properties. Homeowners are able to make a claim through their warranty company for the issue to be resolved promptly.

5. Budget for repairs

A home warranty that can cover the costs of repairs and replacements for home mechanical systems and appliances will make planning operating expenses much easier for property owners who own rental properties. The warranty for homes will make repairs easier and makes tenants happier. It also improves the bottom line. It also offers more convenience, as it provides a one stop shop for all household maintenance repairs and replacement requirements, and eliminating the necessity to swap money on service calls. A home warranty can reduce the annual expenses of the homeowner by covering the total cost of replacing or repairing damaged appliances or systems.

6. Additional protection from landlord liability

A home warranty for landlords safeguards landlords from liability. It provides professional repairs to equipment and systems that are failing due to wear and tear or age. This helps reduce the risk of lawsuits arising from hability claims by tenants since repairs and replacement of the appliances and systems are completed quickly. Covered repairs reduce the need to obtain landlord approval, and also resolve disputes. This also reduces landlord liability. A home warranty could provide additional financial protection as it is tax-deductible and helps to offset rental costs.

7. Ability to choose between different warranty providers

It's not easy to pick a home insurance service for rental homes. You should consider cost, industry reputation, customer service, as well as other features. We recommend looking at the plans available for service and add-ons, depth of coverage plans, cost of plan, industry reputation, customer support infrastructure, and additional features when selecting a home warranty provider. Additionally, you should also pay attention to the ability to choose your own contractor, upgrade your protection package or transfer your plan to a different owner, and also cover roof leaks, high-end appliances ceiling and exhaust fans, and faucets and fixtures.

Our research shows that coverage for plans is the most crucial factor, then customer service. Industry reputation, plan availability and other features must be rated equally as well as price. Price should not be the primary factor in choosing a home warranty provider to meet your home's requirements.

For example, if your rental property features a saltwater swimming pool, pro-series appliances, or reverse osmosis device, Liberty Home Guard has a collection of additional features that might interest you. AFC Home Club provides additional security in the event that you're unable to make repairs within the timeframe of the 30-day workmanship warranty. The HomeServe plans that are tailored to your needs can be a great option for people who are worried about the utilities in their rental property. American Home Shield is the best option for those seeking greater coverage.

Ultimately, we recommend requesting the quotes of at three providers for home warranties and carefully reviewing the policy's terms to ensure you are aware of any limitations or exclusions from the policies. This will help you make educated decisions and assist you select the best home warranty company for the rental properties you own.

8. You can benefit from discounts and other benefits

A home warranty plan can be an excellent method to save money on rental properties. First, these plans can provide a more convenient, cost-effective solution to repair important household appliances and systems because they are likely to break. This could save landlords the expense of regular repairs. In addition, depending on the way a landlord is registered the total premium and service charges of the home warranty program can be declared as an operating expense in a tax return and thus reduce their income total and thus their tax burden.

9. Ability to submit and track repair claims online

Renters can find home warranty plans very beneficial as they allow them to fix their home. If a covered product fails or breaks the landlords only must submit an insurance claim with their warranty company. The provider will then send technicians to the rental property to fix the issue as fast as possible, which saves landlords the hassle in searching for a trustworthy contractor on the shortest notice. The Home Warranty plans permit landlords to ensure the rental property they lease is properly taken care of with prompt service and convenience.

10. Greater tenant satisfaction

Tenants can benefit from a variety of benefits of the HomePRO Warranty, including better service and satisfaction of customers. The HomePRO Warranty reduces service calls because tenants can submit their requests directly without waiting for approval from the landlord. This helps improve the relationships between tenants and landlords. HomePRO Warranty also eliminates the requirement to maintain a connection with multiple vendors. The warranty includes repairs and replacements of various systems and appliances. As a result tenants have the peace of mind knowing that their needs will be met quickly and effectively. A home warranty, which may increase the property's rental price, can be a great option for landlords who want to earn more every month.