Looking for feedback from experienced Landlords. Do you suggest getting Home Warranty and renewing the policy for perptuality of owning the rental property? Any feedback on Home Warranty is welcomed.
I own a few rentals and had home warranty but they elasped. Wondering if I should always be keeping this active on all rentals.
I've heard mixed reviews on home warranties. My friend has one on her primary residence and has used it 3 times since purchasing without much hassle. But she was the first positive experience I had heard about. The horror stories say it takes sometimes a week for the home warranty company to get a tech out to diagnose. In the mean time you would have a tenant who is growing more angry with time. I have an investor who has a home warranty on her rental and when she tried to use it for a dryer the company told her 2 weeks to get a technician out there and likely another week if it needed to be replaced. Not very good for tenant customer service.
But on the other hand it has paid monetarily for those willing to be patient with it. My friend got a new HVAC and above the stove microwave from her home warranty.
Been paying almost 6 years of home warranty on our first property of about $360 for first 3 years and now $720/year in anticipation of a HVAC failure (HVAC was 15 years old when we acquired the property), which amounts to $3.2k in sunk cost. In hindsight, wouldn't have done it. Replacing new system might cost $5-7k in DSM area. We don't have home warranty on the other 2 (1st year was mandatory and let them expire).
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you