Home Warranty on rentals

[Dona D.]

Hi, I've noticed repair costs (HVAC, appliances, plumbing, electrical) would incur and accumulate over the years, so I've purchased home warranties thinking that will save over the long term and also give peace of mind. However I've noticed the contractors that sent by the warranty company are not very competent, sad to say.

I would like to ask if any other landlords here purchase home warranties, and if not, how do you budget for your future repairs that would come up?

Thank you very much.

[Will Gaston]

@Dona D. I tried using home warranties early in my career. It sounds great on paper but in reality it was terrible.

A warranty is an insurance product and insurers make more money when they deny claims. Also, they have little incentive to repair correctly and/or arrive quickly. I once waited 6 long and unpleasant days for my water heater to be fixed. 

You (and your tenant) will be much happier over the long run if you set aside that money for a solid contractor that can handle repairs.