If you’ve been a landlord for any length of time – or even if you’re a home owner – you likely know that things can, and often do, break, malfunction, and even just plain stop working. This goes for appliances like the fridge and washer / dryer, as well as the furnace, air conditioner, and water heater.
In some cases, the repair and / or replacement of these items can be extremely costly – and, if you need to take care of quickly fixing or replacing such items for tenants in a rental property, the cost can oftentimes eat into your overall profit.
There are ways to help you with reducing the cost of these unexpected items, though. One way to do so is through the purchase of a home warranty. These types of contracts will help to pay some or all of the cost of necessary repairs due to common maintenance issues and normal wear and tear, and also for the replacement of an appliance if it is unable to be repaired.
A basic home owner’s warranty will usually cover the following items:
- Heating
- Cooling
- Plumbing
- Electrical
- Appliances
There are also premium plans available that will cover the above items, as well as others such as:
- Plumbing fixtures
- Roof
- Septic system
- Lawn sprinkler system
- Sump pump
- Pool
Home owner’s warranties can be purchased usually for between $400 and $800 per year, depending on the type of coverage you choose. There is typically a small co-payment required when a repair or replacement is necessary.
As with other types of insurance, though, all home owners warranties are not the same. So, be sure to read over all of the fine print before moving forward with the purchase of one of these plans.
Is being a landlord taking up too much of your time? If so, working with a property manager could be the answer. Give us a call and we can provide you with more information on the benefits of working with an experienced property management team.