As a landlord, you likely know that a tenant isn’t going to treat your property with exactly the same loving care that an owner would – and because of that, unfortunately, things may break. As a property owner, you are also probably well aware that repairing and replacing mechanical systems and appliances can get fairly pricey. Depending on the situation, these expenses could even eat into your annual profit. One potential solution to the drain on a property owner’s wallet is to purchase a homeowners warranty. These plans – which are not the same as regular homeowner’s insurance – will typically provide coverage for the repair or replacement of major systems, such as the water heater, furnace, and A/C, as well as coverage for appliances like the washer, dryer, and refrigerator.
For many landlords – especially those who own older properties and / or properties with older systems, the purchase of a homeowner’s warranty can make good financial sense. In many cases, these warranties will cost a few hundred dollars each year – but it can be money well spent if you need to quickly replace a costly item.
If you decide to go this route, though, it is important to thoroughly review the warranty plan and get a good understanding of what it will, and will not, cover. In doing so, it can reduce the likelihood of any surprises at the time of filing a claim.
Working with a property manager can also help you to leverage your time and your investment. For example, rather than rushing over to your properties whenever an emergency occurs, a property manager can relieve you of these duties – while at the same time allowing you to net the benefits of owning investment real estate. For more information on how using a property manager can benefit you, Contact Us.