For many people, purchasing a home warranty for the house they live in makes a lot of financial sense. The protection that’s provided is worth the investment you make. However, when it comes to your rental property, there are different considerations that need your attention when it comes to deciding whether or not you need a warranty.
Each home warranty company is different, and they all have their own procedures and requirements. If you decide that you want a warranty, talk to a property manager or a Realtor so you can get a referral to a reputable company.
Your decision to purchase a home warranty really depends on your ability to respond to maintenance issues at the property. If you have a good network of contractors and vendors who are reliable and provide excellent work for affordable prices, a home warranty may not help you much. Some warranty companies will not be as fast as your own vendors when it comes to fixing a problem. That can be difficult for your tenants, who will want the problem taken care of as soon as possible.
Many professional property managers advise their clients to avoid home warranties. We prefer trained maintenance professionals who can get to the property right away and handle the problem quickly and efficiently. Not all home warranty companies understand the urgency of a maintenance situation, and they will schedule the work several days or even weeks after it could be completed. There’s also the problem of the vendors they use. Many warranty companies have a specific list of contractors that do the work, and your favorite contractors may not be on the list. That means you’ll be getting someone you’ve never worked with before; someone who doesn’t know your property.
If you would like to talk about the pros and cons of purchasing a home warranty for your rental home, please contact us at Your Dream Real Estate. We’d be happy to share more information.