According to Bankrate, per home renovation platform Thumbtack, maintaining a single-family house in the U.S. had cost Americans an average of $10,433 in the third quarter of 2024. Worse, this doesn't even include other ongoing expenses, such as property taxes and homeowner's insurance! With these other expenditures, the overall cost of home maintenance has ballooned to over $18,000 yearly.
As a Kansas City property investor and landlord, you must do everything possible to minimize those costs, as they can significantly reduce your profits. Getting a home warranty is one of your options.
In this investor guide, our team at PMI Station will discuss the top home warranty benefits. So, read on, as what you learn here can help you decide if you need this rental property protection product.
Save on Repair or Replacement Costs
As InterNACHI points out, many appliances, such as window air conditioners and dishwashers, typically last under ten years. Others, like gas ovens and ranges, are hardier, lasting over ten years, while integral systems, such as plumbing, roofing, and electrical, can last several decades. Still, many of their components have shorter lifespans and will break down within a few years.
When such repairs and replacements occur, you, the property owner/landlord, are responsible for their costs. You must pay for them out of pocket, as you can't use your tenants' security deposits to cover repairs or replacements caused by normal wear and tear.
If you do a quick Google search for home appliance and system repairs, you'll learn that they can range from hundreds to thousands of dollars. A home warranty covering many appliances and integral systems can protect you from these expenses.
Enhance Tenant Satisfaction and Boost Retention
Tenants appreciate landlords who are responsive to their needs. The more appreciative they are of their landlords, the happier and more satisfied they'll be, and the more likely they'll want to stay and renew the lease.
Since a home warranty provides financial coverage for property maintenance solutions and repair costs, you can immediately address property upkeep and repairs without worrying about your budget.
Maintain Property Value
Home appliance and system repairs won't go away on their own, and the longer they remain unaddressed, the worse and the more expensive the problems can get. They can also result in other issues (e.g., leaky plumbing pipes can lead to costly water damage and harmful mold growth). All these can significantly affect your property's integrity and reduce its value.
With a home warranty, you can act immediately and have covered repairs or replacements addressed promptly.
Should You Invest in a Kansas City Rental Home Warranty?
A home warranty for your Kansas City rentals can help you save a lot, keep your tenants happy, and protect the value of your properties. All these benefits make them a good investment.
However, a much better choice, especially if you don't have the time to manage your rentals yourself, is to partner with PMI Station. As a full-service property management firm, we'll handle all your rentals' managerial, administrative, and maintenance tasks. Our owner, Farhad Mohazabrad, is a licensed REALTOR, mechanical engineer, and master plumber who brings years of real estate and rental property management experience to the company.
Speak with us today for your free property analysis and to learn more about our management services!
