Home Warranty For Rentals

[Daniel Sabato]

Has anyone ever used a home warranty service to cover the small issues with appliances & such throughout the year? For example, America Home Shield? Wondering how well it works & if it’s proven to be worth it for anyone here!

[Julie Hartman]

@Daniel Sabato We used to have several properties with home warranties and now we have none because the owners realized they weren't worth it. American Home Shield specifically was called out to repair a fridge at one of our properties. It was a higher end fridge and it needed to be replaced but AHS wouldn't budge. They sent a repair tech 7 different times before finally electing to replace the fridge. In that time, our tenants lost all of their food at least 3 times and required a loaner mini fridge (which the owner provided). It was a complete nightmare. If you decide to use one, I would read the exclusions VERY carefully. For major repairs/replacements, they don't cover everything. A new a/c or furnace will typically not be covered 100% and most people don't realize that. They also contract with the lowest bidder when it comes to local repair companies and you get what you pay for. The other issue is they aren't necessarily fast. As a PM, we are obligated to make the fastest repair, not the cheapest. We have habitability laws to be abide by and warranty companies don't. Perhaps others have had better luck with them so just do your research before jumping in. Good luck!