Are you a landlord looking for the best home warranty to cover your rental property?
Perfect, you’re in the right spot. In this guide, you’ll learn:
- What are home warranty plans for landlords?
- How much does a landlord’s home warranty cost?
- Is a home warranty service contract for landlords worth it?
- How does home warranty coverage for landlords work?
- What are the best home warranty companies for landlords and their rental properties?
- And much more!
We’ve reviewed 68 different home warranty companies, and below are our top picks for landlords specific to your state. Want to find out which coverage is most suited for your rental property? Continue reading!
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Our Top Picks Overview
What's In This Guide?
As a landlord, you have a lot on your plate. Not only do you have to routinely find new tenants and stay ahead of utility bills for your rental property, but you have a life and perhaps another job to deal with at the same time.
On top of all that, you often have to deal with late-night calls from your tenants asking you to fix the refrigerator, air conditioning, or some other major appliance or system. Unfortunately, these regular maintenance and repair requests aren’t just time-consuming – they eat away at your bottom line.
Thankfully, there’s a way to keep your rental property fully functional and in good working conditions, all while protecting your bank account. The answer? A quality home warranty plan.
With a home warranty policy, you can get peace of mind and protection from huge maintenance bills, all while simplifying the entire home repair process on your rental property. Plus, you can keep your tenants happy and increase the rental value of your building.
We know you have a lot of different home warranty plans to choose from, so it can be tricky to decide on just one as a landlord. To get you started, here’s everything you need to know about warranties for landlords, plus our reviews of the best plans from the top home warranty providers on the market today.
Top 5 Best Home Warranties For Landlords
What Are Home Warranties Meant For Landlords?
A home warranty for landlords is a way for property managers to reduce their overall annual repair costs on their rental property. In exchange for annual premium and a small service call fee, home warranty plans help cover the cost of repairing and maintaining appliances and major systems in your rental home or building.
When you submit a repair claim, your home warranty company will also send a qualified service provider to your property to assess, diagnose, and fix any damaged home appliances or systems. That way, you can spend less time worrying about maintaining your rental property each day and save money each year on your operating expenses.
What Does A Home Warranty For Landlords Cost?
Home warranties for landlords usually cost between $300-$600 per year. However, the cost of a warranty will vary based on your rental property’s size and location.
Moreover, your policy’s cost will also depend on the type of plan you choose and the amount of coverage you want. In general, you can choose between the following coverage options:
- Appliance or Systems Plans. Appliance plans cover only items, such as dishwashers, refrigerators, and stoves, while systems plans will protect things like your heating, plumbing, and electrical. Both are good options if you want affordable coverage on certain parts of your rental property. They are also known as Basic Plans for some companies, as they are the most cost-effective options to protect essential aspects of your rental home without breaking the bank.
- Combo Plans/Comprehensive Plans. Combo plans or comprehensive plans are perfect for landlords that want to maximize their warranty coverage. These policies will protect all of the basic appliances and systems in your home.
- Build Your Own Plans. Finally, if you want truly customizable coverage, a build your own plan is probably your best bet. This option allows you full flexibility in what you choose to cover. So, they’re a good option for landlords that have very specific coverage needs.
- Add-on Coverage. You can often supplement any with add-ons for your pool, spa, septic system, or sprinklers for even more coverage. Optional items are an additional fee and items cover usually differ between companies.
Is Coverage For Landlords Worth It?
If you own a rental property, you’re probably not too terribly excited by the prospect of tacking on the cost of a home warranty premium to your annual operating expenses. But, home warranties for landlords are worth it. Here’s why:
Reduces Your Annual Repair Costs
Owning a rental property isn’t cheap. Regular systems and appliance repair costs can quickly eat away at your monthly income, leaving you wondering why you decided to invest in rental properties in the first place.
Home warranties can help reduce your annual expenses by covering all or most of the cost of repairing and replacing aging or malfunctioning appliances and systems. Although you have to pay an annual premium, the total savings you can see each year in repair costs by owning a home warranty makes them a solid bet for your property management business.
Protects Your Real Estate Investment
Real estate isn’t cheap, so you want to be sure that you’re protecting your investment by keeping it in full working condition at all times. When you have a home warranty, you’re less likely to put off those much-needed repairs simply because you don’t want to spend the money right now.
So, your warranty plan can help you get a better return on investment should you ever choose to sell your rental property in the future.
Best Home Warranty For Landlords With Rental Properties?
Choice Home Warranty is our top pick for landlords. Why? Choice covers rentals up to 5,000 ft, reasonable annual premiums and won’t deny you coverage if you own an older property.
Increases The Rental Value Of Your Property
People are willing to pay more to rent a house or apartment that’s well maintained. Therefore, having a home warranty that helps you stay on top of regular appliance and systems maintenance issues can help you provide a higher-quality living experience to your tenants.
That means you can charge more for your rent, putting more money into your pocket each month.
Covers What Homeowners Insurance Won’t
You almost certainly have a home insurance or business insurance policy on your rental property. However, these policies will not protect you if you need to replace the electrical system in your building or update all of the old appliances.
In reality, homeowners insurance is designed to help you when there’s a fire, flood, or natural disaster. On the other hand, home warranties are there to support you when you need to pay for the repair and replacement costs to home systems and appliances that are the result of regular wear and tear.
Simplified Home Repairs Service
As a landlord, the constant requests for repairs and maintenance can be quite a drain on your time. Not only do you have to keep your tenants up to date on the repair progress, but you have to go out and search for a reputable contractor that can go to your rental property on short notice.
Home warranty plans help to simplify the home repair process for everyone involved. When you need a repair, you just need to submit a claim to your warranty provider. Then, they will send someone to your rental property to fix the issue as soon as possible. What could be easier than that?
Savings On Your Tax Bill
One of the best, yet least appreciated, benefits of a home warranty for landlords is the fact that you can actually use them as a tax-deductible expense. Your home warranty premium and service fees are all considered qualified expenses on your annual tax bill for your rental property business.
So, not only do you save money in regular repair costs with a home warranty, but you can actually lower your total liability come tax time.
How Do Warranties For Landlords Work (Are They Unique)?
Interestingly, home warranty plans for landlords are similar to the plans that other homeowners can get on their properties. Here’s what you need to know about how it all works:
Step 1: Get A Home Inspection
While most home warranty companies don’t technically require this step, it’s generally a good idea to get a home inspection before you sign your service contract. Since most warranties will not cover pre-existing conditions, you’ll want to be sure that your rental property doesn’t have any underlying issues that can catch you off guard down the line.
After you get a home inspection, you can make any necessary repairs before taking out a warranty policy. That way, you can be confident that any future issues will be covered under your contract terms.
Step 2: Choose A Home Warranty Plan
Once you’re ready to commit to a home warranty, it’s time to decide which plan is right for your rental property. Landlords have a great selection of different plans to choose from, including basic coverage, appliance or systems plans, combo policies, and build your own plans.
Step 3: Wait For The Grace Period
After you sign your home warranty contract, you’ll have to wait for the grace period to end before you can make your first claim. The length of this waiting period varies from company to company but is usually around 30 days.
However, if you already have a home warranty plan and are just looking to switch providers, you can usually ask for a grace period waiver. That way, you can make your first claim as soon as you sign your contract.
Step 4: Submit A Claim
As soon as your grace period is complete, you can submit a repair claim whenever a covered item breaks or malfunctions in your rental property. Most companies have a 24/7 call center or an online portal to help process your claim.
Step 5: Pay The Service Call Fee
Every time you submit a new repair claim, you’ll have to pay a small service call fee. This fee is usually between $60-$125, and it covers the cost of sending someone to your rental property to assess the damage. You can think of this as similar to a copay at a doctor’s office.
Step 6: Get Prompt Home Service And Repairs
Your home warranty company will process your claim as soon as possible and then send a qualified repair technician to your rental property. With your warranty policy, you don’t have to worry about finding a contractor to come to your tenant’s home. Instead, you can sit back and relax as you get prompt and efficient repair service on your property’s systems and appliances.
Want to learn more tips and tricks for as a landlord? Check out this video below.
Top Home Warranties For Landlords Reviewed
There are plenty of great home warranties for landlords out there, so it’s understandable if you’re a bit overwhelmed with your options. To help ensure that you get the coverage you need, here are our reviews of the best home warranties for landlords on the market today:
Choice Home Warranty
Choice Home Warranty earns our award as the best warranty plan for landlords because of their affordable, yet quality coverage options for single and multi-family properties up to 5,000 square feet. The company has two plans to choose from, both of which protect your rental property’s most essential appliances and systems.
In particular, their cost-effective basic plan covers the following:
- Dishwasher and garbage disposal
- Oven, range, cooktop, stove, and built-in microwave
- Plumbing and stoppages
- Hot water heater and whirlpool bathtubs
- HVAC (heating and cooling) and ductwork
If you want even more coverage that doesn’t break the bank, Choice Home Warranty’s Total Plan will protect everything in their Basic Plan, plus your clothes washer, clothes dryer, and refrigerator.
We chose Choice Home Warranty as the best option for landlords because their plans offer the coverage you need at a reasonable annual premium. Plus, they won’t deny you coverage on your appliances or systems just because you own an older property.
The company also has low service fees to help you save money whenever you need to call for a repair for one of your units. We also like that they have a highly responsive 24/7 call center that can assist you whenever your tenants request maintenance on your property.
- Affordable premiums help keep your annual expenses low
- Will cover your rental property even if it’s an older building
- Good selection of comprehensive coverage items to protect your real estate investment
- No customizable or build your own plan option
American Home Shield
American Home Shield is a solid option for home warranty protection for landlords that are interested in having maximum flexibility with their coverage options. Landlords can get an American Home Shield plan on their single-family or multi-unit rental properties that are up to 5,000 feet in size.
With the company, you can choose between an Appliance Plan, a Systems Plan, or a Combo policy that includes coverage for nearly everything in your property. Alternatively, you can Build Your Own Plan if you want to customize the protection you get for your rental property completely.
American Home Shield also has a nice list of different optional coverage items if you want to protect your rental property’s pool, spa, well pump, or septic system. That way, you can be confident that you’re protected from any unexpected repair costs.
Something we also really like about American Home Shield is the fact that they allow you to choose your own service fee. If you have tenants that frequently ask for repairs, having the option to pay a bit more on your annual premium in exchange for a lower service call fee can save you quite a bit of money down the road.
- Ability to customize your own plan to best meet the needs of your rental property
- Can choose your own service fee for savings down the line
- Multiple standard plan options to help you get good coverage for your property
- Some plans have annual premiums that are slightly higher than the industry average
Select Home Warranty
For landlords that want the ultimate in flexibility and control over the home repair process, Select Home Warranty is a great choice. The company offers three different plan options, each designed to meet the unique needs of various single and multi-family rental properties up to 5,000 square feet in size.
With Select Home Warranty’s Bronze Appliance Plan, landlords get the following protection:
- Built-in microwave, oven, and stove
- Clothes washer and dryer
- Garbage disposal and dishwasher
Additionally, with their gold systems plan, Select Home Warranty will cover:
- Air conditioning and heating system
- Plumbing system
- Electrical system
Finally, for landlords that want maximum coverage for their rental properties, the company’s platinum combo plan protects all the appliances in systems in both the gold and bronze plans, plus ceiling fans, exhaust fans, and plumbing stoppages
Select Home Warranty’s plans are a good choice for landlords that already have good working relationships with local contractors. Since the company allows you to choose your own repair technician, you can feel confident that you’re getting the service that you expect on your rental property.
- Affordable service call fee
- Plenty of different plan options to choose from
- Allows you to select your own repairman for more peace of mind during the repair process
- No option to build your own plan
Total Home Protection
Total Home Protection offers two different coverage options for single and multi-unit rental properties up to 5,000 square feet in area. Their plans are particularly attractive to landlords because they have reasonable annual premiums and low service fees.
The company’s Gold Plan provides coverage for the following systems and appliances:
- Oven, stove, range, and cooktop
- Plumbing system and stoppages
- Electrical system
- Dishwasher and built-in microwave
- Ductwork and exhaust/ceiling fans
- Water heater and interior sump pump
- Garbage disposal and trash compactor
- Whirlpool bathtubs
- Garage door opener
Meanwhile, their platinum plan covers everything in the gold plan, plus added protection for your rental unit’s clothes washer and dryer, heating and air conditioning system, and refrigerators.
We also particularly like Total Home Protection’s plans for landlords because they offer emergency repair service that can help you ensure that your tenants are getting the best care possible in their rental unit.
- Low annual premiums and affordable service call fees help save you money as a landlord
- Emergency repair service helps to maintain your home and keep your tenants happy
- Coverage limitations in certain states
First American Home Warranty
First American Home Warranty is a popular choice among landlords because they have some very affordable coverage options and low service fees on single and multi-family rental properties. Their basic plan is designed for property managers that want to protect their investment’s appliances, including their:
- Clothes washer and dryer
- Garbage disposal and trash compactor
- Oven, cooktop, and built-in microwave
For landlords that want even more coverage, First American Home Warranty’s premier plan covers all the appliances listed in the Basic Plan, plus major systems such as:
- Central vacuum system
- Heating system
- Electrical system
- Plumbing system
First American Home Warranty also makes it easy to get customizable coverage with their selection of add-on items for pools, spas, septic systems, and more. The company also has a list of different protection upgrade options available for home sellers should you ever decide to put your rental property on the market.
- Affordable annual premiums to reduce your upfront costs
- Reasonable service fees whenever you submit a claim
- Protection upgrade options should you want to sell your property
- Air conditioner coverage is only available as an add-on
Final Thoughts On Home Warranties For Landlords
If you’re a landlord, there’s nothing better than knowing that you’ll be protected financially if you have to have major repairs on your rental property. With a home warranty plan, you can worry less about property management and repair costs as a landlord.
For rental properties, home warranty plans are a must-have. When it comes to protecting the value of your property and keeping your renters happy, without all the hassle a warranty plan is essential.