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Property Management Blog

Rental Property Home Warranties

James Alderson - Tuesday, October 29, 2013

This is a very important topic to discuss if you own a rental property and enforce a home warranty for repairs.

As we exit the busiest time of the year, summertime, it reminds us of how terrible a home warranty is for a rental property.  Summer always demands AC repairs and when the repairs can’t be done in a timely fashion because a home warranty has to be used, it creates a hostile relationship between the tenant and the management company because they have to go a few days without air.  All the while, we easily and expediently can have one of our AC vendors at a property usually within 12-24 hours for the same if not cheaper cost.

Our relationship with the tenant is purely based on superior customer service.  When we can’t make repairs in a timely fashion, the relationship gets shaky and on average we lose more tenants at renewal time because of  poor maintenance customer service performance than if we use our preferred and trusted vendors.

The amount of money owners believe they save by implementing a home warranty are lost during times of vacancy and annual turnovers and make readies from poor customer service.

Retaining your tenant should be a top priority.  Nothing cost more than a vacancy and a make-ready.

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