As a landlord, there are a number of items that can have an impact on your budget. One of the biggest of these is repairing and / or replacing items that break or become inoperable, such as the water heater, HVAC system, and appliances. But, while getting these items back into working order can be costly, there is a way that you can help to reduce the expense. That is through the purchase of a home owner’s warranty.
A home warranty is a type of service agreement that will cover the cost of either replacing or repairing many of the major systems in a home. The cause of such issues can be due to the item being defective, or even because of normal wear and tear.
Just some of the items that are usually covered by a home warranty include:
- Plumbing system
- Electrical system
- Roof leaks
- Major appliances (such as the refrigerator, washer and dryer)
- Water heater
Typically, the cost of a home warranty is between $300 and $500 per year. Just as with other types of insurance, though, the annual premium for a home owners warranty typically depends on the extent of the coverage, as well as the amount of the deductible.
While many people may think that they can only purchase a home owners warranty if they reside in the property, the reality is that this type of coverage is also available for investment property owners. And, it can be a great way to leverage your out-of-pocket costs.
Even with some or all of the cost of repairs taken care of, though, landlords can still spend a great deal of time communicating with tenants and repair companies if or when an issue comes up. But you don’t have to.
Rather, you can turn these duties over to a property manager, which in turn, can free up much more of your time to focus on other things. If you’d like more information on working with an experienced property manager in Orlando or the Central Florida area, contact us.