Seeking Advice: To Warranty or Not on Appliances?

Question

Hey fellow landlords,

I hope you’re all doing well! I recently purchased several appliances (a dishwasher, stove, and microwave) from Lowe's for my rental property, and I'm at a crossroads on whether to invest in the additional warranties they offer.

On one hand, I'm aware that appliances can sometimes go haywire, especially in a rental setting where they might see heavier use. The added peace of mind that comes with a warranty sounds appealing, but I also want to be prudent with my expenses.

Here are a few specific questions I have:

1. **Past Experiences**: For those of you who have purchased warranties, have you found them to be worth it? Were there instances where the warranty saved you a significant amount of money on repairs?

2. **Typical Failures**: What common issues have you encountered with these types of appliances in your rental properties? Do you think they justify the warranty?

3. **Cost-Benefit Analysis**: How do you approach the cost versus potential savings when it comes to appliance warranties?

4. **Alternatives**: Have any of you opted for a different approach, like including appliance repair costs as part of your maintenance budget?

I'd love to hear your thoughts and insights on this! Your experiences will greatly help me make an informed decision.

Thanks in advance!

Best,

Philip

Berenger Greer · Answer

In my experience as a property manager, most warranty programs are awful. They will go see the appliance, usually misdiagnose, and waste time ordering spare parts/scheduling. In the event something like a fridge breaks, this is not good, at all.

Appliance repair companies typically charge about $300-$500 to repair appliances as well, which is half to total cost of just replacing it.

1. **Past Experiences**: For those of you who have purchased warranties, have you found them to be worth it? Were there instances where the warranty saved you a significant amount of money on repairs?

-No, I have never had a good experience with any sort of warranty company, on anything.

2. **Typical Failures**: What common issues have you encountered with these types of appliances in your rental properties? Do you think they justify the warranty?

-Washer typically bad drain pump, lid switch, belt, or control board.

-Dishwasher - usually control board. If it doesn't drain, this you can hire a handyman for, not a warranty service, they'll unclog it quickly. If it's leaking, check the hose first, door gasket second, if float switch, may be best to replace.

-Fridge 99% of the time is a bad compressor, if the compressor fails within 12 months, then you just have a bad fridge that mass produced bad compressors that will be your replacement parts (I have a real vendetta with GE over this)

3. **Cost-Benefit Analysis**: How do you approach the cost versus potential savings when it comes to appliance warranties?

- Warranties... sound great on paper, in practice, they usually send handyman that are doubling as salesmen. Send em' out for one thing then all of a sudden you have a whole other made of slew of issues and are out their $150-$250 "service fee"

4. **Alternatives**: Have any of you opted for a different approach, like including appliance repair costs as part of your maintenance budget?

- Yes, you should definitely budget for appliance replacement. Each appliance is about $650 on average here in atlanta. provide W/D hook ups but not the W/D themselves, people tend to abuse the heck out of these things and they are breaking all the time.

Long story short, if you find a good warranty company, by all means, call me and tell me about them, that'll be incredibly. Unfortunate truth is, they will more than likely give you the run around have you paying about as much as the appliance cost to keep it alive, and like most things, once they start breaking you can expect a snowball effect of future repairs.

Account Closed · Answer

@Berenger Greer Thank you for your advice! Based on your experience as a property manager, I understand how frustrating warranty programs can be. The misdiagnoses and delays in service definitely make it challenging when an appliance like a fridge breaks down. It’s also helpful to know that repair costs often come close to the price of replacing the appliance. I appreciate your insights and will take them into consideration moving forward!

Account Closed · Answer

@David Peschio Thank you for your response! It's incredibly helpful. I will proceed without the warranties.

David Peschio · Answer

Most warranty companies operate slowly. Claims can take days to be approved, technicians to be dispatched, and service to be completed. Delays of a week or more are common, which is particularly problematic when tenants need essentials like AC or hot water. You are also limited to using their chosen vendors, who can sometimes be late, unprofessional, or provide low-quality service. Additionally, many claims are denied due to fine-print exclusions such as pre-existing conditions, lack of maintenance, or normal wear and tear, leaving you responsible for partial or full repair costs.The service fees and premiums associated with these warranties can quickly add up, often costing more than if you were to set aside the money yourself. This slow resolution often frustrates tenants, and as a result, many property managers eventually drop warranty policies because they hinder fast, reliable fixes.Instead, most landlords find self-insurance to be a better approach. By saving a small monthly fund for upgrades and repairs, tracking maintenance diligently, and hiring local, trusted contractors, you gain control, speed, and happier tenants—without the need for a warranty middleman.The bottom line is that for rental properties, appliance warranties typically slow down the process, increase costs, and frustrate renters.