My wife and I live in Tampa FL and have built a rental portfolio of 42 SFHs in the past year and a half. We have left our full-time jobs and do our own property management. We have a staff of 5 full-time rehab contractors and buy mostly very distressed properties and hold for rental income. We plan to grow our portfolio to 60 homes in the next year.
As we grow our business the cost and time to manage the repairs on the properties is also growing. i.e. our phone rings a lot. So our question is...
Does anyone have experience using a Home Warranty company to perform the maintenance on their portfolio of homes? I found an article that some landlords pay the $400 per home a year and stipulate in the lease that the tenant pay the $75 deductible per service call. The tenant is provided the Home Warranty company 800 phone number at the lease signing.
If I run the financial on this, It would cost $400 per SFH times 60 homes = $24K per year vs hiring a contractor for $600 - $800 a week on average. $700 times 52 weeks = $36,400.
What are pros and cons? has anybody used a company they can recommend?
Thank you.
Joe and Ericka Franz, Tampa, FL