When deciding to either self manage a property or hire a management company, had anyone ever considered leveraging a home warranty to cover those repairs?
I'm comfortable vetting renters and tracking my cash flow, so the biggest thing I see a property management doing is sending someone out to fix or replace something. A home warranty seems like this would provide an easier predictable cost (with the right coverage) instead of having a PM having a fixed hourly cost to send someone out plus cost of repairs or replacement.
Home warranties are not that great, they don't pay for 100% of repairs and often still leave you will high repair bills for what they don't cover.
In my experience you are better of putting the money that you would pay for these policies in the bank and just pay for repairs yourself.
A roof or HVAC system isn't that big a deal once you have some properties.
Fair points. Thank you for sharing.
I will make sure to take this into consideration. It makes a lot of cents (haha)
In addition, the process to get a problem fixed will generally take longer to be resolved when using the home warranty. We had home warranties on our properties but stopped using them as the process was too long causing issues with the tenants, they would perform the cheapest repair and hope it fixed the problem and when it finally came to a big expenditure, they always had a way to get out of it and we had to cover the cost anyway.
@Jeff Penovich , I think the proper argument is PM vs. Self-managing. Then if you decide to self-manage, buy a home warranty or coordinate.
I don't have any home warranties on my rentals. Granted all of my are within a mile of me (intentionally), I do most of the repairs myself. I've heard Home Warranty companies can take a while to respond and address issues.
If you can find a good maintenance partner, that's half the battle. I would still run all the maintenance requests through you so you can decide which to pursue vs. defer. Try to bulk repairs as much as possible because handymen have minimum trip charges.