New owners who want us to manage their Lee’s Summit rental property often ask about home warranties and whether they should buy one. Today, we’re discussing some of the reasons that warranties might not be a good idea when you’re a landlord.
Property Management Lee’s Summit: Cost of Home Warranties
You’ll need to consider the cost of a warranty on an annual basis. Not only do you have to purchase the warranty and keep it in place, there will also be a deductible every time a contractor is sent out to address an issue.
Maintaining Your Lee’s Summit Investment Property
Even more important than the cost is the time that any repairs may take. You’re stuck with a third party taking care of the repairs at your rental home. That company may not always have your best interests at heart. The process of filing and resolving a claim can be cumbersome. There are often delays in getting the necessary work done. Those delays can lead to tenant frustration. As you know, tenant frustration will turn into tenant turnover. Turnover costs are expensive and will cost you more money in the end.
Home warranties can often make sense when you’re buying a home to live in, but when you purchase an investment property, you have to consider how the cost of that warranty will eat into your profits and what kind of impact it will have on your ability to make timely repairs at your property.
To talk about home warranties in more detail, please don’t hesitate to contact us at Midwest Property Resources. We’d love to know what’s going on in your property and to help you with any of your Lee’s Summit property management needs.