I hate Home Warranties!!

I hate Home Warranties!!

Investor · Pawleys Island, SC · Member since 2015 · 324 posts · 385 votes

As the title suggests, I have home warranties. I get they are a great selling feature if you are selling a house, but they are usually more trouble than they are worth for me. I purchased a vacant house off the MLS that I just finished rehabbing and rented out on May 1. The property came with a home warranty which includes the AC. I haven't had one on any properties in probably 5 or 6 years. Well the tenant calls and says the AC worked for about 8 days and then started blowing hot 3 days ago. I call the warranty company. They finally come out this afternoon. He is there for all of 5 minutes says they breaker was flipped that was the problem and left without even checking to see if the house was again cooling. The primary tenant's elderly mother who lives with her was the one home as she was at work. She gets home to an 89 degree home, the mother relays what happened, and calls me.

I assume the breaker tripping is a symptom of the actual problem, which the tech would have known if he had stuck around.  I call the warranty company raising a fuss.  They say they may or may not get someone out tomorrow though we "are a priority".  I requested a different contractor come out as this one is obviously not competent.  I plan to call the new contractor first thing in the morning.

So, do I wait out the warranty company or just have my contractor fix it out of pocket.  At least I know he is competent (I've been using him for 6 years) and available (He has a crew working on another of my properties tomorrow which isn't as big of a priority.) ?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y

Most professional Property Managers I know will not manage homes with a home warranty. It sounds like a great deal as a buyer but home warranty companies are in the business to make money, not protect your purchase. 

A/C problems are usually pretty simple to fix: CLICK HERE

If you can't figure it out on your own, just hire a tech and be done with it.

The DIY Landlord Book4.7247 Reviews
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    Most professional Property Managers I know will not manage homes with a home warranty. It sounds like a great deal as a buyer but home warranty companies are in the business to make money, not protect your purchase. 

    A/C problems are usually pretty simple to fix: CLICK HERE

    If you can't figure it out on your own, just hire a tech and be done with it.

    The DIY Landlord Book4.7247 Reviews
  • Investor · Pawleys Island, SC · Member since 2015 · 324 posts · 385 votes
    8y

    Thanks @Nathan Gesner  

    I see why PM's don't like them.  It came with the house, so I figured why not.  Know I remember why not.    

    Thanks for the DIY link.

    I'm leaning toward having my usual contractor fix it.  He is doing some work for me at another location tomorrow, I may ask him to come to this house first and just pay out of pocket.  

  • Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
    8y

    I agree with having your guy take care of it.

  • Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    8y

    Get a $130 window unit and milk that warranty for all it's worth.  If you wait it out and squeak enough, you'll save bunches.

    Since they have to be called out again for the same issue, you shouldn't have to pay another service fee.

    We got an inside condenser, fan, compressor, capacitor and outside fan replaced for $180.  They replaced an 11 year old fridge with a $900 new one, 20 year old cook top with a new $1600 one and a 20 year old double wall oven with a new $2200 one.

  • Specialist · Las Vegas, NV · Member since 2018 · 2 posts · 1 vote
    8y

    You should't have to pay the service call fee again since it's within 30 days of the original call. I say get it fixed fast since one of your tenants is elderly. You could end up with a bigger problem if she ends up sick from the heat. Wish you the best!

  • Baltimore, MD · Member since 2018 · 432 posts · 281 votes
    8y

    My vote would to inform them that it will be fixed tomorrow or they will be invoiced for the repair. :).

  • Rental Property Investor · Aurora, CO · Member since 2018 · 288 posts · 117 votes
    8y
    Agreed. The couple I’ve dealt with are pretty worthless and came w properties I purchased. Once something went wrong and I tried to use them they basically added no value and I was getting the run around. That’s just my $.02 though.
  • Investor · Pawleys Island, SC · Member since 2015 · 324 posts · 385 votes
    8y

    After today, I hate home warranties even more.  I had my usual contractor come by and have a look.  The Freon was bone dry.  What competent HVAC guy doesn't check the Freon!?!?

    For me the potential saving from the warranty are not worth the run around and potential injury to the tenant-landlord relationship.    

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    HSA Home Warranty story. I'll keep brief...

    Tenants fridge stops cooling in January. Warranty company calls tech. I have to pay $100 deductible. Tech visits a total of 3 times, replaces two parts. He's clearly guessing. Fridge works for 6 weeks. I call again. Warranty company charges me another $100 charge (because I didn't call within 30 days so it must be a separate problem). I'm thinking we need a new fridge. Warranty says that has to be decided by tech. Of course, why would the tech say that, when he can keep coming back and "fixing" the fridge?! So, I request new tech. He's a no show (Sears). Ask for yet another tech. They call the first one back. He now says; "I'm not coming out there because all you want is a new fridge, and I can fix the old one". So, request yet another tech. He comes out and says; "You need a new fridge. That first tech has no idea what he's doing". Yay, a new fridge! It took a total of three months, $200 out of pocket, 5 tech visits/appointments, but I did get a new $750 fridge. I also gave tenants $100 off rent for troubles and thawed food from freezer. So, complete headache. But, I did get a new fridge and a reference for appliance tech, as I now have somebody I think I can trust. 

      ***of note, I had told the tenants if this final tech didn't recommend a new fridge I would buy one out of pocket and have it delivered that week, as there would not be a fourth tech called out for the same problem. 

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    I forgot to mention, if I had to buy a fridge out of pocket, I was still going to have warranty company fix that old fridge, even if it cost a fortune. I'd then keep that fridge for an extra for another unit. No way I was letting the warranty company off scott free after that headache!

  • Investor · Pawleys Island, SC · Member since 2015 · 324 posts · 385 votes
    8y

    @Anthony Wick That sounds like every home warranty experience I've ever had.  To me the money saved isn't worth the tenant relationship damage.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Anna Buffkin bone dry coolant means there is a leak. They need to find the leak and fix it or they will be back every couple months filling it up.

    I would never buy a warranty for anything. They are mostly profit for the people who sell them, which tells you how good a deal it is for the buyer. I worked at an electronic retailer when I was younger and they would pay us 15% commission for selling warranties because they are "pure profit" in their words. 

    They get you several ways:

    - You pay a deductible that is over half the cost of a service call in many cases

    - They get someone out so slowly that your tenant is angry so you hire someone faster that they refuse to pay for

    - They find ways to deny coverage, such as not calling fast enough to report an issue or exclude the repair due to user misuse

    People are way better off putting that $500 or whatever into a repair account. Even when it comes to insurance, always use the highest possible deductible and if you get big enough, consider self insurance.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Anthony Wick must be nice tenants if you got a 750 dollar fridge. My last fridge was 400 bucks from Home Depot. Not even worth putting a warranty on something like that. I considered a warranty for like a furnace or something then I read all the nightmarish things about them on BP, so no thanks. I have a friend who does service calls like this for appliances on the side (day job he’s an engineer) and usually it’s very cheap to fix your dish washer or fridge with just the part, but throw in the deductible and service call fee and it goes up quickly.
  • Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    8y

    @Anthony Wick

    Yeah when they replaced the 11 year old fridge with a new one, I sold the old one for $300 bucks lol.  People forgetting they have warranty or not wanting to mess with it is how these companies can afford contracts like mine I guess.

    And when Lowe's delivered the fridge I was like, "See that ding?".  Gave me a ~15% refund back on the card.  That old fridge done me good. 

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    @Caleb Heimsoth

    I could have bought same fridge for $450. But warranty company has goofy contracts with people. Standard top freezer 18 cu ft, with ice maker, color black. Warranty on both sides of duplex came from seller in January. I won’t be buying one later. 

  • Baltimore, MD · Member since 2018 · 432 posts · 281 votes
    8y

    If the leak is fixable, it’s worth it for now to get more coolant. However...sometimes you can’t fix it without replacing the unit. With a very slow leak, you may have to charge the lines only yearly, but it’s STILL not worth it to do because the old coolant is no longer manufactured and only recycled is available. You’re looking at $500 this year with yearly increases of $100 per year and possibly more for the future. 

    The home warranty companies know all this and pull stunts to avoid paying the high costs involved, starting with lying about the cause and going from there. The technician knew what was wrong. He is doing what the warranty company tells him. 

  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    8y

    I wouldn't waste my time with the warranty company, just get it taken care of and move on. I will no longer manage homes with a warranty or if I do take it on I refuse to use the warranty.

  • Real Estate Agent · Burlington MA · Member since 2018 · 114 posts · 142 votes
    8y

    I recently bought a three family house in Lawrence MA that came with a home warranty. Called them on three separate issues, found a reason to exclude all three from coverage.

    These companies are nothing but one big scam!!!

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