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 Home Warranty for Landlords Picks
Top 3 Home Warranty Companies for Landlords
We’ve done the research for you on the best home warranty companies across the country so you don’t have to. Here are our top three picks, and why.
|Provider||Best For||Monthly Cost||Service Fee||BBB Rating|
|Choice Home Warranty||Best Overall||$40 – $48||$85||B-|
|Liberty Home Guard||Best Customer Service||$40 – $60||$60||A|
|American Home Shield||Most Customizable||$50 – $60||$75 – $150||B|
Choice Home Warranty (Best Home Warranty for Landlords)
Choice Home Warranty is the best home warranty on the market for landlords. Being a landlord has many unexpected time commitments that can make the responsibility very stressful and overwhelming. Having been around for more than ten years, Choice Home Warranty has put together two very impressive and reliable plans to help landlords protect their investment properties. Most landlords are in the business to try and create extra income. Anytime an appliance or system breaks down, the potential revenue will decrease. With some home system and appliances repairs costing hundreds and thousands of dollars, it is smart for landlords to consider the Choice Home Warranty policy. The Basic Plan and the Total Plan feature a wide range of coverage from the microwave, ceiling fans, and dishwasher to the heating and electrical systems.
With Choice Home Warranty, the overall policy is quite affordable. Considering both plans are combo plans with appliance and system coverage, the pricing is much lower than the American Home Shield policy. In addition, the deductible for a repair at your rental property is $85, which is about average across the industry. However, the policy limits, which are close to $3000 for almost all Choice appliances and systems, are well above the industry standard. Select Home Warranty only offers $500 limits on most coverages for landlords. When enrolling in the Choice Home Warranty plan, you will see the service contract is very straightforward for the landlord. It is essential for landlords to understand precisely what is covered and ensure your home warranty is used to its full potential.
Although there are many costs involved in being a landlord, it is smart to consider the cost savings that a home warranty can help produce. Choice Home Warranty is currently offering a sign-up incentive that allows $50 off, one month free, and free cancellation for the first 30 days. Landlords that have been on the fence about a home warranty have the perfect reason to jump right in.
American Home Shield (Most Customizable)
American Home Shield is the editor’s choice for the best home warranty for landlords. As a landlord, you probably have an excellent understanding of the home that you rent. Chances are you know the age and the condition of most of the appliances and systems. Therefore, predicting when and where your next problem may arise could be rather easy. American Home Shield is the only plan on the market that allows you to put together a customized warranty for your home. If you are worried about the systems, the appliances, or both, AHS allows you to get exacting coverage. This is different from Choice Home Warranty and Select Home Warranty, which have pre-set options that you will have to choose from.
As a landlord, it is very important to get issues resolved as quickly as possible. American Home Shield has spent the last 50 years in the industry, and they have a very wide base of service technicians and contractors. When you submit a claim, you can expect a quick and timely response to the issue. This will help when communicating to the tenants that help is on the way. AHS tends to understand the problem at hand before they even get to the home to fix it. If you need a partner in your real estate business, AHS is an option you can trust.
The American Home Shield plan is currently being offered with a $50 off sign-on savings. American Home Shield rarely offers these joining incentives, so it is a great time to jump on board with this reliable coverage.
Select Home Warranty (Most Affordable)
Select Home Warranty is the most affordable coverage for the landlord. Chances are, you will have a policy on your own home and on your investment properties. Having all of these different policies will add up relatively fast, and therefore it makes sense to save money where you can. Select Home Warranty has the lowest monthly premiums and the lowest deductible on the market. With a service fee of just $65, Select Home Warranty is cheaper than both American Home Shield and Choice Home Warranty. This savings is vital as a landlord because there are various issues that can come up and need to be adequately addressed.
When it comes to home warranty policies, you typically have to pay for any coverage you purchase. However, Select Home Warranty is the only provider that will give you free roof leak coverage with the purchase of a plan. Having the roof of your rental properly covered for free is a major reason landlords go with Select Home Warranty. WIth affordable policies, more than ten years in the business, and very strict contractor training, SHW is a perfect choice for landlords.
If you are tired of spending money on your investment properties, now is the perfect time to grab a SElect Home Warranty policy. The current sign-up savings consist of $150 off, two months free, and 30 days to cancel without any fee. This is a huge saving and one that every landlord should consider taking advantage of.
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, without home appliance insurance 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.
If you’re looking for a trusted, industry-leading home warranty company, we recommend Choice Home Warranty. They’re a top-rated brand and right now you can take advantage of their current promotions that get you $50 off, plus one free month and free 30-Day cancellation. Get a free online quote or contact a specialist at 929-400-6169 before these deals end. Another great option is American Home Shield which offers $50 off. Get a free quote online or you can call a home warranty specialist directly at 866-464-7521.
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.
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.