Many property owners buy a home warranty in Atlanta, GA thinking that they are investing in extra protection against possible damages and repair costs. This might work out well for the home that you’re occupying, but as an investor, home warranties don’t always work well for your rental property. Many professional managers have had difficulties making warranties work for their clients.
The Home Warranty Business Model
Every company that provides a home warranty knows that the best way to make money is by collecting premiums and avoiding claim payouts. They will pay the claims eventually, but time is rarely of the essence when it comes to making a repair that is covered under your warranty. Waiting is fine when you’re the owner and the occupant of the property, but when you’re legally required to keep your home functional and habitable for a tenant, you can run into problems.
Home Warranties and Service
Service can also be unreliable with a home warranty company. Professional property managers are responsive, fast, and efficient when it comes to handling repairs and maintenance. However, when a home warranty company is involved, there are often multiple phone calls that are required, and a lot of follow-up in order to get anyone’s attention. Someone will eventually look at the problem, but it probably won’t be fixed right away. This can create a lot of liability for property owners. If your tenant has no heat in the winter, you want same-day service, and not weeks of back and forth with your warranty company.
You’re also required to work with the vendors and the contractors that the warranty company chooses. If you get a vendor that doesn’t do excellent work, you’re going to have additional problems down the road. It’s also important to realize that having a home warranty doesn’t mean you won’t have any out of pocket costs. You’ll probably need to pay a fee that can be more than $!00 just to have someone come out and fix the problem. This is going to add up if the problem isn’t fixed the first time, and you’ll be left with additional costs if the problem turns out to be something that isn’t covered by your warranty.
Consider whether a home warranty is really worth your money before you buy one. Talk to your property manager about other ways to protect your investment. If you have any questions, contact Title One Management.