Home warranties are often considered a good idea for homeowners, but landlords in Akron, OH, might wonder if they're necessary for their rental properties.
Managing rental homes comes with unique challenges, and unexpected repairs can be costly. A home warranty could help cover the costs of fixing or replacing major appliances and systems, but is it worth the investment for landlords?
At PMI Cuyahoga Valley RAL, a full-service property management company, we help property owners make informed decisions. In this blog post, we'll break down the pros and cons of home warranties for landlords in Akron. Let's get started.
Cost Savings and Budgeting
One of the main benefits of a home warranty for landlords is the potential cost savings. As a landlord, you are responsible for maintaining major systems and appliances. If a furnace breaks, the HVAC system malfunctions, or a water heater fails, a home warranty can cover the cost of repairs or replacements.
This helps landlords avoid large, unexpected expenses, which can seriously impact cash flow. Instead of dealing with unpredictable repair costs, landlords pay a fixed annual or monthly fee for the home warranty, making it easier to plan and manage their budget.
Home warranties also reduce the need for setting aside large emergency funds, as many of the most expensive repairs would be covered by the warranty. This can free up cash for other areas of property management or allow landlords to invest in additional properties.
For landlords with multiple properties, the savings potential is even more significant since unexpected repairs across several homes could add up quickly.
Ease of Repairs
Another benefit of having a home warranty is the convenience it offers. When a covered item breaks down, you simply contact the warranty company, and they handle the rest. This saves you the time and effort of:
- Finding a contractor
- Scheduling repairs
- Dealing with the billing process
As a busy landlord, you might not have the time to manage repairs on your own, so having a home warranty can simplify things. However, it's important to make sure the warranty company works with reliable local contractors.
Potential Drawbacks
While there are warranty benefits, there are also potential drawbacks to consider. Home warranty plans don't cover everything, and some repairs might not be included in your plan.
Additionally, home warranty companies might not always be quick to respond to repair requests, which can lead to delays and unhappy tenants. It's also worth noting that the cost of the warranty may outweigh the savings if repairs are not needed often.
We always recommend carefully reviewing the terms of any home warranty plan before purchasing.
Do Akon Landlords Need a Home Warranty?
The bottom line is that home warranties can provide cost savings and convenience for landlords in Akron, but they're not always necessary. At PMI Cuyahoga Valley RAL, we can help you decide if a home warranty is right for your property.
With our full-service property management, we handle repairs and maintenance, so you may find that a home warranty isn't needed when you partner with us.
Contact us today to learn how we can make managing your rental properties easier and more efficient with our real estate management services.
