Pros & Cons of Home Warranty for Rental Properties
Pros:
1. Peace of mind: Gives you peace of mind that your systems and appliances will be covered when they inevitably break down.
2. Financial stability: Provides financial stability when your systems or appliances break down.
3. Network of professional service providers: Access to a network of experienced, licensed service providers for all of your systems and appliances, saving you the time of finding professional contractors for each of your needed repairs.
4. Convenience: Only one phone number or website needs to be saved to file a claim on any appliance or system in your home.
Cons:
1. Cost in the long run: What we have found is you will pay more in the long run by having a home warranty than not having one. This is how home warranty companies make money.
2. Long wait and Ability to pick your service technician: Many home warranty companies do not allow you to pick your favorite service technician, if you have one and most of the time it takes days before you can schedule a technician out. Therefore the tenant is not happy. If the tenant is not happy, nobody is happy.
3. Potential claim denial: We have also found that If your system or appliance is not being improperly maintained, your home warranty company will not cover it. Reasons for claim denials are detailed on a company’s sample home warranty contract, which is typically uploaded to its website and in very fine print. Be ready to squint.
4. Exclusions: Home warranty companies’ plans only cover some appliances and systems, and some exclusions may apply. These are also detailed on a home warranty’s sample contract.
In Conclusion. Home Warranties seem like a great investment but they are NOT. MF CashFlow has in house Property maintenance with systems in place controlling this piece giving everyone peace of mind and saving you Cash & Time.
