Does A Home Warranty Make Sense In A Rental Property?
If you’re starting to get into property management – or even if you have a few rentals under your belt – you’re probably aware that it’s not as simple as buying another house and getting tenants.
Among the various costs, you’ve no doubt come across the question of whether or not to get a home warranty. After all, is it really worth the money when someone else will be living there?
What’s a Home Warranty?
First things first, you should know what a home warranty covers before deciding whether or not it’s worth the investment for your rental.
A home warranty is a year-long, renewable home service plan that covers home systems and appliances when they stop working due to normal wear and tear. Things like your air conditioning, heating system, and water heater are covered, along with certain appliances you put in yourself, like a dishwasher, a refrigerator, a washer and dryer, and more.
Depending on your budget, you can choose the systems and appliances you want covered. And, when something does break, the company that you signed up with will take care of finding a professional. You’ll have to pay a small service charge when you submit a ticket for repairs, but the warranty will actually cover the cost of repairs–which can save a lot of money, considering that home repairs can often cost hundreds or even thousands of dollars.
Can You Even Get A Home Warranty On A Rental Property?
Yes!
Any home you buy is eligible for a home warranty, including rentals. Even if your property is one unit in a condominium or townhouse complex, you’re eligible for everything that’s not shared property (like pipes that go to multiple units, for example).
It is worth mentioning that a multi-family house’s home warranty will be more expensive than a single-family home. But in the long run, you’ll save money on future repairs and replacements. Plus, the cost of a home warranty is tax deductible for rentals!
Can You Get A Home Warranty After Purchasing A Property?
Yes!
Typically, a homeowner will sign up for a home warranty when they buy their home, but don’t worry if you decided to opt-out. You can sign up for a home warranty all year long!
So…Is It Worth It?
Ultimately, it’s well worth getting a home warranty. Not only will you save money on repairs, but you also won’t have to deal with the hassle of finding a professional to fix your appliances – this is especially useful for those whose rental properties are out of town.
If you’re ready to sign up for a home warranty, we are ready to help! Contact us today for a free quote, and we’ll help keep your homes–rental or otherwise–protected.
