Maintenance and repairs can be a property owner’s nightmare. As homes get older, the larger components start to break down often leading to costly and extensive repairs. Many landlords look to offset these expenses by purchasing a home warranty policy through a number of different companies. This is the first section of a four part article which discusses the pros and cons of home warranty companies.
Benefits of Having a Home Warranty Policy
Ever get tired of having to pay for repair after repair?
Being charge $150 to $200 for someone to go out, ring the doorbell, and just say hello to your tenant without doing any work can be very frustrating. Now this may be a bit exaggerated depending on where you live, but in most cases it is difficult to have work done to your property for less than $100 especially if it’s a larger component such as a water heater, air conditioner, or a furnace.
Fortunately, there is an alternative solution that helps landlords reduce their out of pocket expenses by purchasing a home warranty policy. Typically, a warranty policy will cover a variety of different items located in the property such as appliances, plumbing fixtures (toilets, faucets, shut off valves), lighting, water heaters, heating and cooling systems, etc. When something breaks down, the home warranty company will send out a technician between $45 to $75 on average and they will repair it at no additional charge.
Bad water heater, no problem because it will cost you less than $100.
The tenant called and reported the refrigerator stopped working, you have nothing to worry about just call your home warranty company and they will take care of it.
Another added benefit is vendor screening. One of the biggest challenges a property owner faces is finding good help. Many end up going to a phone book or searching online to find a plumber, electrician, appliance technician, etc. and never really know who is going out or if they have the proper credentials. In addition, most owners don’t know what to look for when trying to determine if the company or person is qualified. Having pre-screened vendors go out to your property can greatly reduce your stress and risk as a landlord.
So why worry?
If you can reduce your stress and liability while cutting back on your expenses, then why not take advantage of the benefits that home warranty companies have to offer?
The next section of this four part series will cover the draw backs of home warranty companies.
August 8, 2013