Are Home Warranty Companies worth the effort? : ezLandlordForms

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Matthew M

started a topic about 6 years ago

I have two four-flat properties, both covered with home warranties. While they're quick to respond, it seems that if the tech recommends appliance replacement, it takes weeks to get a straight answer from the company and, in the end, they just get another tech and start over again until they find one who'll just fix on the cheap. That's been my experience anyways. I would like to hear from other landlords on this subject.

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Wynette S

said about 6 years ago

I most certainly think they are worth it in most cases. I suggest however setting aside money for replacement items in the event you have to pay out of pocket and recouping your money back from the warranty company rather than having your tenant go with out an appliance for days, weeks, or even months. My home warranty is great about reimbursing me for eligible items/services I've had to purchase on my own due to the availability of techs in the area to do the job.

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Matthew M

said about 6 years ago

Thanks. I'm in that boat now. Company told me that it'll be a min of another two weeks 9four weeks total) before they can get a new repairman and a compressor for a fridge. While talking it over with the tenant, she said she saw a Sears Outlet fridge for $500 so I told her to grab it and deduct the bill from the rent. I'm still on the fence. I could have done that first without the call and just cheapened the payments by dropping the fridge coverage altogether.

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Darwin Q

said about 6 years ago

I own several rental properties and personally, I think it's best to simply hire an appliance repairman vs. paying for a home warranty company. Two main reasons: you're paying between $350 - $500 a year for the policy as well as a service fee, per call. I rather put that money aside and actually use it when I need it. Reason number two: the tenant does not have to wait weeks before getting their appliance repaired; your tenant will be much happier. If the appliance is over 12 or 13 years old and starts breaking down, I rather go buy a brand new appliance for $500 than paying a repairman to fix an old appliance.