This may help property owners save some money & some stress

7 Replies

This may have been discussed before, but this may help owners save money & stress from time to time. One of the tips I offer landlords is that they look into a home warranty. I also recommend that they ensure the coverage includes; AC/heat, plumbing, appliances & electrical. Some of the items I mentioned can be expensive to repair or replace. 

Home Warranties can be helpful.  However, as a property manager, they often do not help with retaining tenants.  Here's why:  

In order to complete a repair, the home warranty company must be contacted with the home warranty number and the owner's credit card information.  The company then sends out one of their preferred vendors for an evaluation to report to the home warranty company.  The home warranty company must approve the repair, and then schedule the repair. The preferred vendors are often backed up.  The repairs take much longer to complete than they would if your property manager contacted a vendor with whom they work with regularly.  I'm in Alabama, so a delayed HVAC repair can really be a hassle in the heat.  In the case of home warranties, I have seen repairs take up to 2 weeks when it could have been made quickly.

@Matt MacDonald

I always ask the seller to buy me a 12 month home owners warranty. But I never renew it. I usually can identify problems in the first year, and it also allows me to quickly get the reserves account going before a major expense.

In my experience and hearing feedback form other landlords these home warranties are not worthwhile for most people. I have seen people make a claim and then have to pay several hundred for this not covered in the fine print.

Good feedback. I think it depends on the home warranty company as well. I've had good experiences with some of my homes & good experiences with some of my customers homes as well. I had a water to air system in one of my homes & it started acting up & the home warranty company sent vendors out pretty quickly & it saved me a lot of money. Also, had some electrical issues & plumbing issues in one of my homes & it went well there too. Electricians are pretty costly down here is FL so they saved me some money. 

You could have easily titled this “ a tip to lose money and add another expense “ 

Most of those warranties aren’t worth the paper they are written on . They are so heavily underwritten and in fine print that getting these people to pay is like pulling teeth after you jump through hoops 

Originally posted by @Matt MacDonald :

This may have been discussed before, but this may help owners save money & stress from time to time. One of the tips I offer landlords is that they look into a home warranty. I also recommend that they ensure the coverage includes; AC/heat, plumbing, appliances & electrical. Some of the items I mentioned can be expensive to repair or replace. 

 Home warranties are not a good product. Just playing the numbers a landlord would do much better over time to not pay for any of them on their portfolio. All a home warranty is, is another hand in the cookie jar taking their cut of the profit. There is a limited amount of profit in any deal. The fewer hands collecting the profit the better.

I've been lucky, because they worked out for me on AC, plumbing, & electrical issues. They have saved me some money & they have saved owners I’ve worked with money as well.