If you’ve owned residential rental property for any amount of time, then you are likely well aware that repairing and replacing appliances and systems just goes along with the territory. Unfortunately, though, while you want to make sure that tenants are happy, how much do you really want to spend out-of-pocket on big repair bills? The good news is that a home warranty can be purchased by landlords for rental property. These service agreements can cover the expenses on repairing or replacing various items due to normal wear and tear. The policies differ from regular homeowner’s insurance, which provides coverage from perils like fire, floods, and theft.
Depending on what you want to have included in the coverage, the premium for a homeowner’s warranty will typically cost just a few hundred dollars per year – and can be well worth the premium if you need to have repairs done on the HVAC, water heater, refrigerator, and other high-ticket items. Some of the more comprehensive policies may even cover smaller repairs and replacement needs, like kitchen and bathroom faucets.
As an added bonus, landlords are allowed to deduct the cost of a home warranty on a rental property. In this case, the amount of the policy’s premium, as well as any service fees like deductibles, are considered to be operating expenses.
Even with some or all of these repair and replacement costs covered, though, making sure that all is running smoothly with your rental properties can be time-consuming – and it can cut in on the time you have available for doing other, more enjoyable, things.
With that in mind, hiring an experienced property manager could be the ideal solution. Just some of the services that a property management team can perform include rent collection, tenant management, marketing, repairs, and responding to emergencies.
So, if you own rental real estate in the Orlando and/or surrounding Central Florida area, give us a call to learn more about making your life easier, while at the same time still generating passive income from your investments.
