As the owner of rental properties, you know the frustration of panicked calls from your renters for non-working furnaces, air-conditioners on the fritz, and broken refrigerators. These issues interfere with your work day, cause stress for your renters, and cost you money. For multi-unit apartment buildings, single-family homes, or weekly beach rentals, home warranties are a great way to alleviate the stress of unexpected costly repairs and replacements at your rental properties. The advantages of home warranties are many and can make your life as a property owner much less complicated.
Advantages of Home Warranties for Rental Properties
- No need to identify and schedule a repairman— The home warranty company does this for you.
- Surprise expenses are avoided —Budget for the home warranty premiums and service calls, so expenses are covered.
- The cost of home warranties and service calls for rental properties is tax deductible—Save your receipts.
To keep your life simple, get your properties covered by a home warranty. You can leave the scheduling of repairs to the warranty company. In addition, you can save on your taxes by relying on their predictable premiums.
Things to Consider When Purchasing a Home Warranty for a Rental Property
- Know what is covered—When repairs are needed, you don’t want any surprises.
- Decide on a level of coverage—Prices vary based on the coverage level. Cover only major systems such as heating and air-conditioning or cover those items plus appliances. There are many choices.
- Find out if there is a waiting period—Coverage generally does not start immediately and can vary from company to company.
- Know the service fee—Service fees charged with each repair can also vary. Ask before you buy.
Say you’re new in the rental property business or live a distance from your rental properties. In either of these cases, a home warranty is especially helpful.
If you live out of state or out of the area of your rental property, it is hard to manage the day to day issues that arise. It is a huge benefit to not look for repair or replacement technicians. The home warranty company will handle this for you.
As a new rental property owner, having a home warranty for at the least the first year gives you time to build up cash reserves for repairs. It also gives you the opportunity to get a realistic view of the cost involved in the maintenance of a rental property. At the end of the first year, you can assess whether to continue with the home warranty or go it alone.
Overall, a home warranty and all that goes with it can be a great help in managing your rental properties. Get a home warranty and sleep better at night!