A home warranty can be a great tool to protect you from breaking the bank on home repairs. While the coverage can differ depending on the provider and the type of plan you select, in general,fixing or replacing home appliances, as well as systems like plumbing and electrical.
This coverage, which generally applies to broader incidents where a home gets damaged. But if just your dishwasher stops working, for example, then you might be able to use a home warranty plan to cover the cost of repairs.
Home warranty plans can be particularly helpful for landlords. A homeowner of one property might be willing to take their chances and hope they don't need many repairs. But the more properties you own, the more likely something will break. A home warranty could help manage these repairs.
If you think you would benefit from putting a home warranty in place you can act today. It's easy to get started.
In particular, here are some of the top benefits a home warranty could provide to landlords.
Ways a home warranty could benefit a landlord
can help property owners save time, money and provide a better experience to renters in several ways, including:
- Gaining budget clarity: Since you can't predict everything that will break or need to be replaced within a rental property, it can be hard to budget for these issues. One year you might have 10 appliance repairs and the next year you might need to do 20 full appliance replacements across your properties. Home warranty protection can help you cover some of these costs. That way, you know how much you're spending per year on the home warranty services, and you can have less variability for certain out-of-pocket expenses. Secure budget predictability - and protect your rentals at the same time - by signing up with a home warranty provider today. You can quickly get a quote.
- Limiting high expenses: Not only can a home warranty smooth out a landlord's budget, but it can also help limit high expenses that eat into the ROI of rental properties. If you run into bad luck and lots of appliances in your properties start to break, that can make your investments much less financially rewarding. But a home warranty plan could limit how much you have to pay for repairs, even if that bad luck occurs.
- Streamline repairs: Home warranties work by not only covering some of the financial aspects of repairs but by linking coverage holders with repair people. If a tenant's fridge isn't working properly, for example, you don't have to call a bunch of service professionals and see who's available. You could submit the issue to your home warranty provider who would then find a qualified tradesperson to take a look at the problem, often within 48 hours. That can make your job as a landlord easier while also providing a good tenant experience if the home warranty provider can quickly dispatch someone.
How a home warranty could negatively affect landlords
While there are many benefits of home warranty plans for landlords, there are also some downsides to keep in mind.
For one, the cost of annual or monthly plans might end up being higher than what you would have paid for handling repairs on your own. Still, that's a risk you might be willing to take for peace of mind.
Another issue could be that home warranties limit flexibility. Although it can be convenient to let the home warranty provider pick the repair person, in some cases you might be more comfortable choosing your own professionals.
Plus, in an emergency, your home warranty provider might not be able to dispatch someone within the timeframe you're looking for, so you might need to go outside the plan in these cases.
Weigh your home warranty options
Home warranty plans can be helpful for landlords who want to gain more control over their budgets. Also, home warranty repairs can sometimes be easier to manage than trying to coordinate fixes independently. However, some landlords might prefer to handle repairs on their own, including finding their own repair professionals.
To decide whether a home warranty is right for you, be sure to weigh your options. Home warranty plans can differ significantly in terms of what they cover. Perhaps you'd be more comfortable with a low-cost basic plan, or maybe you want comprehensive coverage that significantly reduces the chances of paying for repairs out of pocket. Compare plans to see what works for you and your rental properties.
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