When you own residential rental property, you run the risk of items like appliances and major systems (such as the furnace and air conditioner) breaking – even if it is just due to normal wear and tear.
Unfortunately, paying to repair or replace these items can be expensive, and it can ultimately cut into your profits. But there is a way that you could help yourself to reduce these costs, leaving more money in your pocket. That is through the purchase of a home warranty.
Home warranties are plans that provide for discounted repair and replacement of various items such as:
- Electrical systems
- Water heater
- Washers and dryers
Depending on the plan, you could even obtain coverage for repair or replacement of swimming pools – which are often included on Florida properties.
As with other types of insurance, you will usually be required to pay a deductible if you file a claim on a home warranty. However, this could be minimal as compared to the out-of-pocket price of replacing or repairing costly items yourself.
It is important to note that a home warranty is not the same thing has homeowner’s insurance coverage, which covers major “perils,” such as damage from natural disasters, fires, and theft or vandalism.
Operating residential investment property can be a great way to supplement your income and increase your overall net worth. But it can also be somewhat time-consuming if you are personally taking care of finding and managing tenants, and if you are maintaining the property on a regular basis, as well as responding to emergencies.
So, if you own rental homes and/or units in Orlando or the surrounding Central Florida area, and you want to take your time back – while still benefitting from your real estate investments – give us a call and we will provide you with more information on how you can do so.