Is It a Good Idea to Purchase a Home Warranty Plan for a Rental Property?

This is one of the most common questions that investors and landlords ask in regards to home warranty plans. Renting out properties can be an extremely lucrative business, but there are a few downsides. For instance, if an appliance breaks, the homeowner (you) will be responsible to pay for the replacement. These bills can often pile up, and locating someone to handle the maintenance can be difficult. Therefore, it can be a good idea to consider purchasing a home warranty plan for your rental property(s).

Reduce Your Repair and Replacement Costs

Household appliances and systems such as air conditioning units can be quite expensive. You’ll have to pay for the unit and the installation, which can be quite a hassle for you and the tenant. With a home warranty plan, there’s no need to set aside a large chunk of money for repairs and replacements costs. You’ll simply give your warranty company a call, and they’ll come over and see what can be done. In most cases, they’ll repair the appliance for a small fee, depending on the type of plan that you purchased. Your tenants will appreciate the quick action.

Keep Your Tenants Happy

In my experience, when a tenant calls with a problem, then way fast action. Many of my tenants have been happy just by the fact that I can make one phone call and have a technician dispatched. It saves me the hassle of finding and scheduling somebody, and it shows my tenants that I’m on top of the issue. That can help ease any tensions and potentially save you from lost rent.

So consider a home warranty as an investment. It’s an investment into your properties and your landlord-tenant relationships. One decent home warranty plan can practically pay for itself in one major breakdown.

Leave a Reply