First, for those who are looking to enter the landlord business Home Warranties are separate from Home Owners Insurance. They provide different types of protection (we will cover more on this) and while Home Warranties are optional Home Owners Insurance is not.
Home Warranties protect household appliances from what is called normal wear and tear. These warranties can be purchased with varying types of coverage and may cover appliances, fixtures and even some systems in the home. Normally there is a small service fee for a technician to come and inspect the damage. Items may be repaired instead of replaced but when appropriate items may be replaced with similar or possibly identical items. American Home Shield is a good place to start your search as they are one of the more popular providers.
That is something that depends on your financial abilities. If you can self-insure (afford repairs) and the items are relatively new compared to their expected life span then maybe pass on insurance. If the appliances are in their back-half of life expectancy they can go out without notice and be rather expensive to repair or replace. It is also easier for the rental management company to contact or for you to contact the Warranty Provider than have you write a check.
Other things to consider are that often tenants are not as gentle or conservative with appliances. Especially in short term rentals. Also, tenants are not as quick to provide maintenance like changing those air filters or keeping the grass mowed around the air conditioner outdoors.
If you have been considering a home warranty check with American Home Shield or possibly even with your Home Owners Insurance company. Be honest about the home being a rental and the condition of the property. If you have any concerns or have decided to lease one of your homes contact us for assistance with property management. We would love to hear about your home warranty and rental property.
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