Landlord Advice | Should you buy a Home warranty?

Some people love home warranties, others actually loathe them. So should you buy a home warranty for your rental property?

Many property managers prefer not to have home warranties because warranty companies usually take much longer to make appointments with tenants and repair items, especially if there is a major breakdown such as a total appliance replacement, repairs can often take several days, even a couple of weeks to complete. The easiest way to annoy a tenant is a repair that takes a long time to complete. Tenants often expect that since they are paying the rent that all repairs should be done immediately. Now we know that logistically that is impossible, however that that is the common tenant way of thinking so we must cater as much as possible to that to keep good tenants happy. Wouldn't you want your washing to be fixed in a timely manner if it broke down? Well, we must treat others the same way. Home warranties can hinder this.

Now if you are purchasing an older property that has not been updated in a while, then a home warranty may be able to save you hundreds if not thousands if appliances or air conditioning systems fail. On the flip side, we have known landlords to buy multiple properties and spend so much money on all their home warranties that they really didn't save any money overall after you add up the actual repair costs Bourne by the warranty companies. Remember these home warranty companies are in the business of making a profit, on your dime.

Our recommendation is that if you 'really' feel that a home warranty is the best way to go for your situation, then we provide the tenant with the warranty information and they can call them directly when a repair is needed, so they are completely informed by the warranty company on how long they expect to receive calls back from vendors, or if there is further follow up needed they are actively involved in that process. Also, if there is an emergency such as a refrigerator break down, or the a/c system stops cooling in hot summer weather and there are vulnerable people such as babies or elderly persons in the house, then as a back up, use regular vendors who can get out there asap for immediate repairs.

Oliver Overton-Morgan,
Absolut Realty Inc.

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