Home systems and appliances must be in perfect working order for owners of rental properties to get the most out of their investments. Landlords also have a legal responsibility to ensure the functionality of things like plumbing, heating, and electricity. Unfortunately, the expense of repairing or replacing a system, structure, or appliance on a rental property can be a major financial headache, especially when tacked onto mortgage payments, taxes, various utilities, and other costs.
A landlord can effectively protect his or her investment in real estate with a home warranty on rental property. Home warranties for landlords provide convenience and financial reassurance, just as they do for owners of single homes.
A home warranty is different from home insurance. While insurance covers a property in the event of structural damage from fire, natural disasters, and the like, a home warranty protects specific systems and appliances in and around the home.
As with insurance, a property owner remits a monthly payment to the provider of the warranty. If, for example, a water heater in a tenant’s home breaks down, the provider would arrange for a technician to fix or replace the heater. The property owner would pay a small service fee, but would be saved the expense of paying the full cost of a new water heater.
Commercial warranty plans vary widely in coverage and cost. Property owners should research available plans and work with a warranty provider to select the most appropriate agreement. Some of the appliances and systems that are commonly covered under warranties include:
A home warranty for renters is uncommon. Typically, a warranty is an agreement between the warranty provider and the owner of the property. It is also not usually the renter’s responsibility to ensure that systems and appliances in a unit are functional.
If you’re a renter and you’re concerned about the upkeep of things like plumbing and heating in your unit, you can contact the landlord to see if he or she has an active warranty. If you’re concerned about protecting your personal belongings, you can investigate renter’s insurance.
If you’re interested in protecting your rental properties with a home warranty, Liberty Home Guard has many affordable plans to choose from. For as little as a dollar per day, you can find a plan to protect you from unexpected and expensive repairs.