Home Warranty for Rental Property – What You Need To Know

Many landlords wonder if carrying a home warranty for a rental property is worth it. Imagine your tenant calls to let you know they have been without hot water for a day. This is an urgent matter as any landlord knows, you know you have to do something, and fast! So you scramble to contact a specialist hoping they are reliable and after they conclude their diagnostic report, they will let you know whether you need a repair, or if you need an entire system replacement for the hot water heater. Either way, you’re going to have to come out of pocket. With a Liberty Home Guard home warranty plan that cost can be reduced down to just the cost of your one time service call fee!

As a landlord, you already have a enough on your plate in your own home, so any issues your rental property may incur could be a real drag. Why add more stress worrying about finding a reliable HVAC technician or appliance repairman when covered malfunctions happen at your rental property? Even though you’re not living in the home, it’s still your responsibility and you’d be covered if you had a home warranty for your rental property.

Will My Rental Home Warranty Coverage Differ Being A Landlord?

Even though you’re not living in the home, you own it and your home is covered in the same fashion as if you were residing there. Liberty Home Guard has the best home warranty for rental property’s with three pre-built plans, and the option to custom build a plan package specifically suited to your individual needs because let’s face it, no two homes are the same.

How Do I Know If It’s Worth The Cost?

To determine whether or not a home warranty for your rental property is in your best interest there are a few things to consider first and foremost:

1. How old are the systems/appliances in my rental property? While newer units can still breakdown, it is less likely to occur in comparison to older units (5 years and older) which can breakdown more than once in a year.
2. Do you own more than one rental property? If you answered yes to that question, it is time to strongly consider a home warranty for rental property. Imagine trying to coordinate a highly rated and reliable service provider for your tenant(s) when more than one property has an issue. Let Liberty Home Guard take the worry and stress away with our dedicated team of trained dispatch service professionals who will easily arrange for a licensed technician to visit. All of this will be at your discretion and leisure, based on yours or your tenant’s schedule.
3. Time and money. As a landlord it can be very time consuming to stay on top of what your tenants needs are, especially if you have more than one rental property. With Liberty Home Guard, we take the hassle out of the equation by communicating directly (if you so choose) with your tenant alleviating the headache of multiple phone calls.  If you do not have money set aside for repairs or replacements, a home warranty plan is a good way to provide peace of mind.

The Benefits of Having a Home Warranty

Home warranties can offer numerous benefits for landlords of rental properties:

1. Cost Savings

One of the most significant advantages of home warranties is the potential for cost savings. Landlords can avoid large, unexpected repair bills, which can be a financial burden. With a home warranty, they only need to pay the service call fee, and the warranty provider covers the rest of the repair or replacement costs.

2. Peace of Mind

Home warranties provide peace of mind to both landlords and tenants. Landlords don't have to worry about the financial implications of major system or appliance breakdowns, and tenants know that their landlord is proactive about ensuring their living conditions remain comfortable.

3. Attraction and Retention of Tenants

Offering a home warranty as part of the rental package can make a property more attractive to prospective tenants. It can also help in tenant retention, as tenants are more likely to renew their leases if they know that maintenance and repairs will be promptly addressed through the warranty.

4. Simplified Repairs

Home warranty providers usually have a network of qualified service technicians. This simplifies the repair process as the landlord doesn't need to spend time searching for a reliable contractor. The warranty company manages this for them.

5. Predictable Costs

The annual or monthly premium for a home warranty allows landlords to budget for maintenance and repairs more predictably. This can be especially useful in managing the financial aspects of property ownership.

6. Competitive Advantage

Landlords who offer a home warranty can use it as a selling point in their property listings. It's a unique feature that can set their rental property apart from others in the market.

How to Choose the Right Home Warranty

Selecting the right home warranty for your rental property is a crucial decision. Here are some steps to help you make an informed choice:

1. Evaluate Your Property's Needs

Start by assessing your rental property's specific needs. Consider the age of the property, the age and condition of its systems and appliances, and any recurring issues that tenants have reported. This will help you determine which items are most in need of coverage.

2. Research Warranty Providers

Research and compare different home warranty providers. Look for providers with a good reputation, transparent terms and conditions, and a responsive customer service team. Read customer reviews and ratings to gauge the provider's reliability.

3. Understand Coverage Options

Review the coverage options offered by each provider. Ensure that the items you want to protect are included in the warranty plan. Pay attention to any coverage limits and exclusions to avoid surprises later.

4. Examine Service Call Fees

Check the service call fee for each provider. While this fee is common, it can vary widely. Consider how often you anticipate needing service, and factor in the cost of the service call fee when comparing providers.

5. Request Sample Contracts

Request sample contracts from the warranty providers you are considering. Review these contracts carefully to understand the terms and conditions, including any fine print. Make sure everything is clear and aligns with your expectations.

6. Get Referrals

Speak to other landlords who have experience with home warranties. They can provide valuable insights and recommend providers they have had positive experiences with.

7. Consider the Tenant Experience

Think about how the home warranty might impact your tenants. Will they be comfortable with the warranty provider's procedures and timelines? A positive tenant experience can contribute to better tenant-landlord relationships.

8. Negotiate with Providers

Don't hesitate to negotiate the terms of the warranty contract with the provider. While there may not be much room for negotiation on the basic terms, some providers may be open to adjusting certain terms or fees to win your business.

9. Review the Cancellation Policy

Understand the cancellation policy of the warranty provider. Some providers offer a money-back guarantee within a certain period. This can be a safety net if you decide the warranty isn't meeting your expectations.

10. Monitor and Adjust

Once you have chosen a home warranty, monitor the performance of the provider and the quality of service provided. Be ready to make adjustments or switch providers if you encounter recurring issues.

Things You Should Know As A Landlord:

As a landlord, the cost of a home warranty on your rental property is tax deductible.  Not only is the annual premium tax deductible, any service fees are considered “operating expenses” and you may claim these expenses to reduce your income taxes. Like with any other tax deductible items you must not forget to save your receipts (which we’ll email you) or credit card statements! A home warranty for your rental property is usually a step in the right direction if you’re looking for peace of mind. Before you enroll in a home warranty plan for your rental property here are some tips before you buy.