Home warranties are often recommended to homeowners as a reliable way of protecting the critical systems and appliances in a private residence. While they’re popular with homeowners who own and reside in one home, home warranties can also be a great resource for homeowners who rent out units to tenants. A home warranty for multi-family dwellings or a home warranty for apartment building complexes can save landlords a significant amount of time and money.
Liberty Home Guard has a wealth of home warranty plans available. First, let’s go over what a home warranty is and explore some of the benefits of a home warranty for landlords.
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What Does a Home Warranty Do?
A home warranty offers affordable protection for systems, appliances, and structures in an around a home. It’s not the same thing as homeowner’s insurance. While insurance will provide a payout in the event of disaster, a home warranty is more specialized and covers the repair and replacement of various home components. Some things typically covered in home warranty agreements include:
Heating, ventilation, and air conditioning (HVAC)
Plumbing
Electrical wiring
Built-in appliances
Plans can typically be upgraded to cover additional items, such as pools, smart devices, and stand-alone appliances.
How Does a Home Warranty Work?
As with insurance, homeowners pay a premium to the warranty provider when they enter into an agreement. Cheap home warranty plans may cost only a few hundred dollars for the entire year. Upgraded plans that cover additional items are more expensive. When something in the home fails, the homeowner files a claim. The warranty provider will then dispatch a technician to the residence to diagnose the issue. If the item requires replacement, the warranty protects the homeowner from fronting the cost.
What Are the Benefits of Home Warranties for Landlords?
A multi-family, apartment, or duplex home warranty can offer excellent protection for a real estate investor’s portfolio. Let’s take a closer look at some of the benefits.
Financial protection. Plumbing, HVAC, and electrical systems are complex and require expensive professional attention. Home appliances—refrigerators, ranges, ovens, dishwashers, and the like—are extremely costly to replace. If you’re renting out multiple units, it’s very likely that an expensive appliance or system will need to be repaired or replaced. A home warranty can shield you from taking the brunt of the associated costs.
Convenience. If you rent to many tenants, responding to service calls or arranging for service technicians to visit your units can eat up much of your time. Because home warranty providers have a network of technicians and repairmen at the ready, they can spare you this task.
Reassurance. Even the most reliable and responsible tenants put wear and tear on a home or apartment, and time and the elements stress home components over time. A home warranty can alleviate the stress of worrying about when something will require your money and attention.
Comfort for your tenants. A home warranty means your units will always be in working order, providing your tenants with safe and comfortable living spaces.
Asset appreciation. Home warranties routinely increase the value of living spaces. They can be a great draw for buyers if you ever want to sell a unit.
Why Choose Liberty Home Guard
Whether you’re just beginning to dabble in real estate or you’re a seasoned investor, Liberty Home Guard has a plan for you. Our network of licensed, insured professionals can attend to your properties even if you’re states away. Contact us at (866) 699-4589 to find the best plan for you.
