Updated Mar 23, 2023
Updated Mar 23, 2023
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Investing in real estate can be a great way to earn passive income over time. Still, whether it’s a career choice or a side hustle, managing a rental property requires careful planning in order to best accommodate your tenants and maximize your profit. A home warranty can provide rental property owners with a hands-off, low-cost solution for fixing major household appliances and systems as they inevitably break down.
Read on for more information on what a rental home warranty plan covers, where to find the best home warranty company for rental properties, and other practical ways to protect your real estate assets.
Our in-house team of home services experts researched 60+ top-rated home warranty companies across the U.S. and hand-picked the following five providers specifically for the clarity of their contract terms, customer service responsivity, and overall competitively low prices.
Choice Home Warranty (CHW) offers the best overall coverage for rental properties. As one of the top providers in the industry, Choice currently protects over 1.6 million homes nationwide from expensive appliance and system breakdowns. CHW does a tremendous job of wrapping affordability, attention to detail, and simplicity into its rental home warranties.
Choice Home Warranty covers short-term and long-term rental properties of all kinds, from single-family vacation homes to residential townhomes to luxury condos.
No matter what type of rental property you own, you’re guaranteed prompt and professional repairs or replacements through Choice with a workmanship guarantee of 90 days on parts and 60 days on labor.
Fill out this form or call 929-400-6164 to get a free quote from Choice Home Warranty.
Read our full Choice Home Warranty review for more.
Delayed updates and prolonged repair work can reflect poorly on you as a landlord once your tenant has notified you of an issue at the property. As the most trustworthy provider in the industry, Liberty Home Guard (LHG) prides itself on responsive and solutions-oriented customer service.
Even though LHG only has four years of industry experience, it currently stands as the only home warranty provider with an A rating from the Better Business Bureau (BBB).
Liberty Home Guard offers exclusive savings opportunities for landlords with multiple rental properties. Each additional property you cover with an LHG home warranty will earn you additional discounts on your premium. Also, LHG will remind you that, as a landlord, the cost of your home warranty is tax deductible.
Standard coverage prices for a rental property home warranty start as low as $1 per day, and come with over 41 optional add-ons with specialty coverage options like carpet cleaning, pest control, re-keying, and more. New AHS policyholders will receive $200 off their premium plus free roof leak protection and two bonus months of coverage (for a limited time only) on their rental property.
To get a free quote from Liberty Home Guard, fill out this online form or call 866-451-2281.
Continue reading about LHG in our Liberty Home Guard review.
Select Home Warranty (SHW) is the most cost-effective option for rental property protection on the home warranty market. SHW keeps upfront costs low for rental homeowners with competitive rates and a generous assortment of discounts for new customers.
When real estate investors and landlords first sign up with Select, they’ll receive $150 off their premium, free roof leak protection (a $99 value), and two complimentary months of coverage. SHW also only charges a $60 service call fee — one of the lowest deductibles industry-wide.
SHW also makes it free to transfer your policy between homeowners should you ever decide to put your rental property up for sale
For a free quote from Select Home Warranty, fill out this online form or call 888-370-3953.
Read our full Select Home Warranty review for more details.
American Home Shield (AHS) offers the most customizable rental home warranty plans in the industry. Founded in 1971, AHS has been in the home warranty business long enough to know that no two rental properties are created equal. For that reason, American Home Shield has a customizable service fee and three versatile rental home warranty plans for its policyholders to choose from based on their unique coverage priorities.
Rental property coverage will include all that a regular home warranty does for a homeowner; it will cover appliances and systems regardless of age, make, or model. With AHS, landlords also get the benefit of coverage for undetected pre-existing conditions and damage caused by improper routine maintenance.
If your rental property is on the same site as your primary residence, you can use the Guest Unit add-on to cover the rental unit so long as it’s under 750 square feet. In other words, you’ll be able to stretch your protection across two properties while still only paying for one plan.
For a free quote from American Home Shield, fill out this online form or call 888-365-2839.
To learn more about AHS, visit our American Home Shield review.
If you’re looking for rental home warranty coverage that kicks in sooner rather than later, The Home Service Club (HSC) is the best provider for you. With a waiting period of only ten days — compared to the 30-day industry average — HSC offers the quickest rental property protection. The Home Service Club also guarantees a claim response within 24 hours, ensuring your tenants won’t have to wait on service for a broken system or appliance.
Like American Home Shield, HSC also offers a customizable service fee of $60, $75, or $95. Selecting a higher service fee will result in a lower monthly or annual premium and vice versa.
The Home Service Club guarantees a replacement if your rental property’s appliances or systems can’t be repaired. When purchasing a home warranty from HSC, landlords or real estate investors who opt to pay annually will receive a $125 discount and one month of free coverage.
HSC also offers real estate protection plans that can protect you as a homebuyer when acquiring a new rental property.
To get a free quote from The Home Service Club, fill out this online form or call 800-842-9334.
Continue reading about HSC in our complete The Home Service Club review.
Being an owner of a rental property can be rather stressful. You’ll have to pay quite a bit of attention to the property to make sure that tenants keep it in good shape. And between property advertising, tenant screening, managing the lease, and more, eventual maintenance issues inside the property are just an added headache.
Having a home warranty for your rental property in your back pocket can ensure that appliance and system malfunctions will be resolved without draining you of time or money. When a tenant reports an issue to you, all you’ll have to do is notify your service provider with one phone call or online submission. The rest is off of your plate.
A rental home warranty is a key financial protection tool for successful real estate investors. Given that the average cost of an emergency home repair sits at around $1,400 per issue, a home warranty can pay for itself after just one appliance or system breakdown.
And remember that, as a landlord, your premium is tax-deductible. Your investment property’s inevitable maintenance needs are taken care of at little or no cost to you.
A home warranty is a service contract that covers major appliances and built-in home systems as they break down due to normal wear and tear. Securing a home warranty for your rental property ensures that your investment is protected against expensive maintenance issues at all times.
Because plenty of landlords live far away from their investment properties, it can be difficult to track down a reputable service technician in the area for a fair rate. Having a home warranty for their rental properties grants landlords access to prompt and affordable service professionals without needing to be present. Here’s a step-by-step for how this would work:
Landlords and real estate investors have a unique advantage when it comes to financing premiums because rental home warranties are tax-deductible. So long as your rental property is not owner-occupied and generates steady cash flow, your home warranty premium can be written off as an operating expense.
Any real estate investor or landlord seeking peace of mind when it comes to their rental properties will benefit greatly from a home warranty plan. Household maintenance issues are inevitable for all homeowners, but especially so for owners of older homes. Landlords leasing out an older property should always have home warranty coverage at the ready for when any original appliances or systems eventually succumb to their age.
Home warranties are also a great tool for real estate investors who own multiple properties. Instead of juggling maintenance needs from all your current tenants at once, a home warranty can help you streamline your property management duties. With the right service contract in place, the renter, property manager, and landlord will be kept up-to-date on when to expect a fix for the issues at hand.
Tenants can’t purchase a home warranty for the property they’re renting. Still, renters insurance is always an alternative option for anyone needing individual coverage for their belongings while leasing your home.
Yes! Home warranties on rental properties are considered an operating expense, and therefore can be claimed and deducted from your taxes.
Home insurance for rental properties differs greatly from a home warranty. Rental property owners will typically invest in landlord insurance, which protects damage to rental properties from wind, fire, and other covered disasters.
Landlords cannot purchase the typical homeowners insurance policy as they do not live in the house. Most landlords have Landlord insurance and require their tenants to have rental insurance as well.
A home warranty for rental property will only offer coverage on normal wear and tear on the properties home appliances and systems. This type of contract will not cover damage from natural disasters.
Home warranties can be purchased for all types of homes, including condos, apartments, mobile homes, single- and multi-family homes. The only variance may be cost, as some policies will be cheaper if the square footage is smaller.
At House Method, transparency and trust are our most important values for the reader.
To create this rating system, our team spent hours researching over 60 companies, analyzing 2500+ key data points, getting the thoughts and opinions of 1000+ homeowners, and speaking to home warranty company representatives directly. We also dug into the fine print on each company’s service agreement to ensure no detail was left out.
We developed an objective home warranty review and rating methodology to score each home warranty company based on several criteria. We used a five-point scale with a point index ranging from 0.00 to 1.00. The minimum awardable value is 0.0, whereas 1.00 is the maximum. These numeric points are translated into star ratings, using whole star increments between one and five.
Here is a quick breakdown of our five core scoring categories:
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