SFR self-management, Millionaire Real Estate Investor

[Nicolas Ake]

I'm reading The Millionaire Real Estate Investor by Gary Keller and Jay Papasan and I came across this tip about managing single family houses.

"Many single-family investors sidestep the issue( in regards to hiring a PM) through home warranties and lease agreements. For example, they purchase a warranty for their property that covers common repairs with a $50 deductible. They then write into the lease that all repairs are the tenant’s responsibility, along with the deductible. This can be marketed as a win for both the owner and the occupant, since the renter can call for any repairs at any time for a small out-of-pocket cost, while the owner doesn’t have to book repairs around the tenant’s schedule."

Has anyone had experience with home warranties? Are there more convenient ways of making self management more hands off than this technique?

Thank you

[Nathan Gesner]

Good luck with that. Home Warranties suck which is why many property managers will not manage a home that has one. You have to call them to report a maintenance issue and wait for them to find a vendor. They always hire the cheapest vendor available to cut their costs. Many claims are denied. Many things aren't covered that you thought may be.

Home warranty businesses are in it to make money, which requires them to maximize income and minimize expenses.