Why You Can Not Manage to Ignore Building Management Service Warranty thumbnail

Why You Can Not Manage to Ignore Building Management Service Warranty

Published Sep 01, 22
8 min read

What is a home warranty?

A home warranty is a kind of service agreement that will pay for the cost of fixing or replacing your home's system and appliances when they fail because of normal wear and wear and tear. Home warranties are not a substitute for home insurance, which protects your home from damage caused by theft or natural disasters. They are designed to protect your home's appliances and systems. Every type of home is qualified to be covered by home warranties. They can reduce the cost of repairs and replacements and make it affordable for landlords both new as well as old. The service call cost is a fee which is paid to the home warranty provider every time a claim is put into. Most providers do cover older homes, but certain providers do not provide coverage for home appliances with existing conditions.

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

1. Protection against high repair costs

The use of a home warranty on rental properties can guard against costly repairs by providing expedited service, the convenience of one stop shop, and with no cost for service. This cuts down on cost and time that is spent on repair work and provides financial protection against unplanned repairs and replacements. Regular maintenance can help increase client and tenant retention. Tenants can ask for service without requiring approval from the landlord. Covered appliances and systems can also be repaired promptly, which decreases the chance of negative reviews. This allows landlords to charge less rent, and also save money.

2. Common household appliances covered

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

3. You can rest assured that the repairs will be done

Having repairs made through the home warranty offered to rental properties provides landlords with numerous benefits. Through covering repairs, maintenance appointments, and replacements, landlords can protect themselves from having to shell out cash on demand whenever there is a problem. In addition, a home-warranty plan makes the home repair process for everyone involved by submitting a claim to the warranty company. The provider will then send a person to their rental home to resolve the problem. Property management companies will see a decrease in third-party contractor invoices and insurance costs because of the fact that a lot of repairs and replacements can be completed in a short time. Having a home warranty for rental properties also helps to increase client and tenant retention by dealing with the primary reason that causes tenants to move out: maintenance issues. Tenants can request service from their landlords without having to get approval. This allows them to repair appliances and systems quickly. Also, it reduces the likelihood of tenants complaining about it. Overall homeowners' warranties provide landlords with an affordable and efficient solution for repairs for rental properties.

4. It helps you save time and makes it simple to find contractors.

Using a home warranty for rental properties could save time and hassle in the search for the right contractor. Rather than having to go out and find an experienced contractor with a good reputation on an emergency basis, a landlord just needs to send a claim to their home warranty company and they will dispatch someone to their rental home to take care of the issue as soon as they can. This is more efficient than needing to call multiple contractors to locate the best one for the job.

Property managers however, can save time and effort by sending a trusted vendor they have already worked with to a managed home. They are familiar with the cost, work schedule and history of the vendor. This means that they don't have to spend time researching and choosing the best contractor to do the job. In addition, trained contractors are more likely to be ethical and considerate of tenants, which is crucial for tenant satisfaction.

Sometimes, it may take days to receive help from a home warranty company. This could result in unhappy tenants who expect their repairs to be dealt with swiftly. This adds to the discontent. Property managers are intermediaries between the tenants, the homeowner warranty provider, and property owners.

A home warranty is an excellent method to reduce time and eliminate the hassle of hiring an expert contractor. Property managers can use trusted contractors they have already worked with to homes they manage, while homeowners can submit an inquiry to their warranty company and get the issue fixed within a matter of minutes.

5. The ability to budget repairs

A home warranty that can pay for repairs and replacements to appliances and mechanical systems in your home can make budgeting for operating expenses much easier for property owners who own rental properties. A home warranty plan helps in making repairs more predictable, making tenants content and improving the overall bottom line. It also offers more convenience as it is a one stop shop for all home maintenance repairs and replacement requirements, and not having to exchange money at service calls. Furthermore having a home warranty can reduce the cost of homeowner's insurance by covering all or a large portion of the costs of fixing and replacing malfunctioning or old equipment and systems.

6. Additional protection against landlord liability

A home warranty for landlords helps protect against landlord liability through rapid, professional repairs to systems and appliances that fail due to wear and tear. Tenants are less likely to be able to sue landlords due to the repairs and replacements of appliances and systems are done quickly. Repairs covered by the warranty reduce the need to obtain landlord approval as well as resolve disputes. This further reduces landlord liability. Additionally, having a home warranty in place can serve as an additional layer of financial protection, as it qualifies as tax-deductible, allowing you to reduce rental costs.

7. Ability to choose between different warranty providers

It isn't easy to select a home warranty provider for rental properties. You should consider cost and reputation in the industry, customer service system, as well as other features. We suggest considering the various plans for service, additional coverage options, the depth of coverage plans, cost of plan, the reputation of the company, its customer service infrastructure, as well as additional features when selecting a provider for your home warranty. Also, think about whether you are able to choose your own contractor and upgrade your coverage plan. Also, how easy to transfer your policy from one person to another.

Our research shows that plan coverage is the most importantfactor, then customer service. The reputation of the company, its availability and other features must be rated equally, and price range shouldn't be the sole base for selecting the best home warranty company for your home's needs.

Liberty Home Guard offers a assortment of additional options to meet your requirements, including an saltwater pool reverse osmosis system and pro-series appliances. AFC Home Club provides additional assurance if you're not able to repair the issue within the 30 day workmanship guarantee. HomeServe specialized plans may be an ideal option for those who are most worried about their rental's electric lines as well as American Home Shield may be the most suitable option for those who prefer a home warranty company with greater coverage limits.

In the end, we suggest requesting an estimate from at three providers for home warranties and carefully reading the terms of the plan to ensure you are aware of the limitations and exclusions from the policies. This will enable you to make educated choices and help you select the best home warranty company for your rental properties.

8. You can take advantage of discounts and other offers

A home warranty plan could be a great method to save money on rental properties. First, these plans can offer a convenient, cost-effective solution to repair important household appliances and systems because they are likely to break. This could help landlords save cash on repairs that are routinely required. Another advantage is that the premium and service fees of the home warranty plan may be claimed on a tax return as an operating expense, subject to the landlord's registration. This could lower their income overall and reduce tax burden.

9. Ability to send and track repair claims online

Renters will find their home warranty plans to be extremely beneficial since they help fix their home. When a covered item breaks or malfunctions and needs to be repaired, landlords must submit a claim with their warranty provider. The provider will send technicians to your rental property to resolve the issue as fast as possible. This will save landlords time and effort in finding a reliable contractor who can be reached at the shortest notice. Through providing speedy service and convenience, home warranty plans help landlords to ensure the rental property they lease is taken care of quickly and efficiently.

10. Greater tenant satisfaction

Tenants can enjoy many benefits from a HomePRO Warranty, which includes improved service and customer satisfaction. The HomePRO Warranty reduces service calls since tenants can make demands directly, without waiting for approval from the landlord. This improves the relationships between tenants and landlords. In addition, HomePRO Warranty eliminates the need for landlords to have to deal with multiple vendorssince the warranty covers repairs and replacements for different appliances and systems. In turn, tenants can enjoy the security of knowing that their requirements will be met promptly and effectively. The house warranty, which may boost the rent of the house and is a good option for landlords who want to earn more each month.