Today, many home sellers work to “sweeten the deal” by offering a home warranty with the property. These plans typically help pay for the cost of repair or replacement on major home systems like the furnace and water heater, as well as appliances such as the refrigerator, washer, and dryer, if they break due to normal wear and tear.
Depending on the plan, the yearly premium may run several hundred dollars. Plus, there is oftentimes an out-of-pocket deductible required from the policy holder when a claim is filed. Home warranties differ from regular homeowner’s insurance, as the latter covers various perils like damage from natural disasters, as well as theft.
So, as the owner of residential rental property, does it make sense to purchase a home warranty on your investment(s)?
The answer is, it depends.
But in many cases, this type of coverage could end up saving you money in the long run, especially if you have owned – or you plan to own – your property(ies) for many years, as it is likely that many of the covered items will eventually require repair or replacement. So, even with the cost of home warranty’s premium, the amount of money that you save may be substantial.
Owning and operating residential rental homes or units can also be somewhat time-consuming. With that in mind, if your investments are taking up more time than you would like, it may be wise to consider bringing a property manager on board who can take over a long list of tasks like finding and screening tenants, maintaining the day-to-day needs of the property(ies), collecting the monthly rent, and responding to emergencies.
Do you own residential rental property in Orlando or the Central Florida locale? If so, give us a call and we will provide you with more information on how our property management services could help.