A Home warranty can cover some or all of the cost of repairs or replacement on appliances, fixtures, and even major systems like water heaters and HVAC. While these policies can be extremely cost effective for homeowners, though, can they be purchased for rental homes?
The Answer Is Yes
The answer is a resounding yes – and not only can they be bought for rental property, but there is a long list of reasons why they should be. For instance, landlords and real estate investment owners oftentimes wear many different hats. These can include taking responsibility for:
- Marketing vacant units
- Screening tenants
- Collecting rent
- Taking care of regular maintenance needs
- Responding to emergencies
- Evicting tenants who cause damage and/or do not pay rent
There are also a multitude of expenses that investment real estate owners and property managers can incur. So, having a home warranty can help to defray the cost of a wide range of both small and large items.
As an example, these agreements typically cover the cost of repairing or replacing various items when they fail dur to normal wear and tear. There is usually a small deductible that must be paid when a service technician comes to the property to evaluate the item(s) in need of repair.
What Type of Properties Are Covered By a Home Warranty?
Home warranties can be purchased for all different types of property, including:
- Single family homes
- Multi-family structures
It is important to keep in mind that a home warranty is not the same thing as homeowner’s insurance, with the latter protecting the property from expenses due to perils like fire and certain types of natural disasters, as well as vandalism and theft.
While a home warranty can be beneficial for reducing large expenses, there are also ways that rental property owners can ease the demand on their time. One way is by hiring a property manager.