Why We Don’t Work with Home Warranties: Prioritizing Efficiency, Cost-Effectiveness, and Tenant Satisfaction
As a property management company dedicated to delivering the highest quality service to both homeowners and tenants, we’ve made the decision not to work with home warranties as a standard part of our management services. While home warranties may seem appealing at first glance, we’ve found that they often create more challenges than solutions. Here’s why:
1. Cost Inefficiency
Home warranties often come with an initial purchase cost that can range from a few hundred to over a thousand dollars, depending on the coverage. But the expenses don’t stop there. Every time a service is needed, there’s usually a service charge or deductible that homeowners must pay. These charges can add up quickly, making home warranties less cost-effective in the long run.
When you consider the cost of the warranty itself, the service charges, and the potential for delays (which we’ll discuss in a moment), it often becomes clear that home warranties are not the money-saving tool they’re often marketed as. In contrast, our team works with a trusted list of vendors we’ve built relationships with over the years—professionals who provide excellent service at a reasonable cost.
2. Delays and Inconvenience
When something goes wrong in a home, whether it’s a broken HVAC system in the middle of summer or a plumbing issue that disrupts daily life, time is of the essence. This is not just your investment property; it’s the tenant’s home too. Unfortunately, home warranties are notorious for delays. Here’s why:
- Vendor Availability: Home warranties often claim to have “preferred vendors” ready to handle issues, but this isn’t always true. In many cases, they simply call any 24/7 company they can find, often resulting in delays and inconsistent service quality. This “last-minute scramble” approach can put your tenants in a bind, leaving them to deal with the inconvenience of unresolved issues.
- Warranty Parts: Even when vendors are available, home warranties may force them to use specific parts covered by the warranty. These parts may need to be ordered or shipped, causing further delays. In some cases, these parts may not be the best quality, leading to recurring issues down the line.
- Limited Coverage: Another frustrating issue we encounter is contacting a home warranty company only to find out that the specific part or repair needed isn’t covered. This not only adds unexpected costs but also wastes valuable time. By the time this discovery is made, your tenants have already been inconvenienced, and the resolution process is further delayed.
- Service Coordination: Imagine an emergency situation—maybe it’s after hours, and something critical needs immediate attention. Our after-hours service is designed to respond quickly and efficiently, but contacting and coordinating with various home warranty companies for each individual homeowner would create significant delays. This compromises our ability to resolve issues swiftly and keep tenants safe and comfortable.
3. Tenant Satisfaction
The home you own is more than just an investment; it’s where your tenants live. When something breaks or needs repair, it’s essential to resolve the issue quickly and effectively to minimize disruption to their lives. Home warranty delays can leave tenants without essential services, causing frustration and dissatisfaction. As a property management company, part of our job is to keep tenants happy and to ensure they continue to rent from you. Prolonged wait times for repairs can drive tenants away.
4. Our Approach: Efficiency and Quality
Instead of relying on the often sluggish process of home warranties, we’ve built a reliable network of trusted vendors who we know will do the job right, and do it quickly. These are professionals we’ve worked with for years—contractors who have proven themselves time and time again. They’re responsive, trustworthy, and know how to get things done efficiently and cost-effectively.
When urgent situations arise, our priority is to take care of the issue as quickly as possible to ensure your property remains in good condition and your tenants are satisfied. We don’t have time to wait for warranty company approvals or specific vendors; we need to act fast. By using our own vendors, we can provide timely repairs and avoid the complications that often come with warranty services.
5. Our Management Agreement
Our approach is reflected in our management agreement, where we clearly state:
“The Property Manager does not provide accommodations for home warranties as a standard part of its property management services. However, in the event that a home warranty is pre-existing and active at the time when the Property Manager assumes management responsibilities for the property, the Property Manager will make reasonable efforts to collaborate with the warranty company in situations where their response time aligns with the urgency of the matter at hand. The Property Manager reserves the right to assess the situation and determine the most suitable course of action, including utilizing the services of the warranty company if it aligns with the timely resolution of urgent issues. It is acknowledged that the effectiveness and response time of the warranty company are key factors in this determination.”
This policy allows us the flexibility to act in the best interest of your property and your tenants, ensuring issues are resolved quickly and effectively.
Our goal is to protect your investment while ensuring your tenants are happy and well-cared for. By avoiding the pitfalls of home warranties and relying on our trusted network of vendors, we can provide high-quality, efficient service that keeps both you and your tenants satisfied. If you have any questions or would like to discuss this further, we’re here to help!