Home Warranty on Rental Property
Hello all!
I am a new landlord, but have started feeling the hassles of dealing with rental property repairs, especially appliances and HVAC... I am struggling weighting between handling repairs on my own (stressfully understanding the issues and arranging contractors...) as they happen vs buying a home warranty (paying premium and service call fee). Could any pro please kindly share your thoughts and experience on the Pro and Con of having a home warranty for rental properties and your persona advice?
Any inputs are greatly appreciated!
Best regards,
Yan
Most Popular Reply
- Real Estate Broker
- Cody, WY
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A home warranty is generally a waste of money. The system is designed for the warranty provider to make money. IF you file a claim, they may refuse to cover it. If they do cover it, they may be very slow to respond. They will charge a fee for every call they respond to. They send cheap, low-qualified contractors to do the work. They will do what they can to ensure they make money, not spend money.
Most professional property mangers will not even manage a rental with a home warranty because of the delays and shoddy work done.
- Nathan Gesner
