Warranty Companies to help me with my rental

[AL DURAN]

I have invested in a out of state rental and will have a property management co. managing it. I plan to buy a home warranty to cover appliances and plumming. They will repair appliances, $30  or $70 fee  depending on which company I use.

What do you guys think of this idea? And what warranty co's do you recommend?

[Kim Meredith Hampton]

Al,

Here is my two cents on home warranties;
First, as a Property Manager for over 20 years I have found that Home Warranties to be an absolute nightmare when it comes to tenants, owners and warranty companies.
I find that most of the time they magically don't cover the item that you are calling about, and you end up paying a service call fee, calling another vendor and then paying for and repairing it anyway.
They also take forever to get someone out to take care of anything. I think that most of the time they make people frustrated and you end up losing money in the end.
Typically the vendors they send out undercut each other to get the work, but then end up making no $, so your job falls to the bottom of the list!
Waiting for them to replace or warranty is a real issue with tenants in the property. The tenant, the property manager or owner must pay for the service fee immediately, and then we play the hurry up and wait game!
If you do purchase, it's important to make sure that you know your policy inside and out, what does it and does not include.