Can You Use My Home Warranty Company For Maintenance Repairs?
Are You Considering a Home Warranty?
Before you do so or insist on finding a Professional Property Management Company who is willing to coordinate maintenance and repairs through a home warranty company. Please take the time to read through the information provided below which is based on our past experiences with home warranty companies.
Below is the Q&A from our Owner FAQ section on the QwestPM.com website.
Q: Will you use my Home Warranty Company, such as American Home Shield?
A: No. We will not use American Home Shield or any other Warranty Company for any repair issues at your property under any circumstance. If you have a Home Warranty and wish to use it, you’ll have to hire a different management company.
By working through a Home Warranty Company it takes the repair and maintenance coordination out of our direct control. If, as a property management company, we wanted to damage our reputation with as many tenants as possible by providing the worst maintenance response imaginable, we can think of no better way to accomplish that than by using American Home Shield. They simply are not compatible with the level of service we demand of our contractors, and they don’t make the cut to be one of our preferred vendors. We have been burned so many times in the past that we finally decided we’d had enough!
Q: Why are repairs and maintenance so important?
A: Nothing affects the landlord/investors long-term success and the reputation of a property management company more than the manner in which repairs are handled. Residents judge us by almost no other measure. When maintenance and repairs are not handled appropriately, there is a negative ripple effect put into motion which will cause more work for the Management Company and higher incurred expenses to the landlord/investor. It therefore makes little sense to entrust contractors we do not know, whom we have no relationship with or control over, with the reputation of our company and the relationship with our resident. Instead, when repairs are needed, we will send our trusted contractors with whom established relationships and excellent communication exists, and will provide the quality service we require in a professional and timely manner.
Remember, all money flows from your residents. Happy residents pay their rent and stay enthused to care for your property. If you as the landlord do not properly maintain your property, how can you expect a resident to properly care for your property? The landlord/Property Manager must set the expectation for the resident to follow. Make sure you hold yourself to a high standard before you expect your residents to display the same standard.
Unfortunately, our reasons for taking such a hard line with regard to home warranty companies is due to many past experiences. We had situations where AC units and even furnace replacements would take over a week to complete. And, the one that put us over the edge and forced us to finally draw that line in the sand and say, "Never again," was a refrigerator replacement that took two weeks. Now, imagine if you and your family were paying rent and holding up to your part of the bargain as far as the lease and caring for the property is concerned. You can imagine how upset a tenant would be in that situation. It all but completely destroys the relationship between the management company and the tenant. And, I would like to say that these were just one-off events, but take a look at the customer's reviews for several home warranty companies below.
First American Home Buyers Protection
Here is an article that was written by Angie's List which talks about the pro's and con's of the home warranty, but also talks about how warranty companies will hire the lowest cost contractors and will only allow for the lowest possible repair cost, even if that repair would not be the best long-term solution. It also points out that warranty companies will do anything and everything they can to exclude repair coverage when possible, so most consumers feel like they are paying premiums for insurance which is not being covered when claims are filed. You have to remember that the warranty companies are in business to make a profit. And, in order for an insurance company to make a profit, they must collect more money in premiums than they pay out in claims. They would not be in business if they did not know with certainty that their customers will pay more in premiums than they will need to pay out in repair claims over the long-term. You will spend more money on a home warranty over then long-term then you would if you paid for repairs as needed.
We could give several additional examples of poor experiences we have had with these warranty companies. From a number of misdiagnosed repairs to our clients paying for the warranty companies, contractor service calls only to be told that the repair is excluded from their policy. But, we think we've provided enough evidence above to make our point.
Please save your money for repairs, as they are needed, and done correctly by good contractors and support our efforts to foster a good and mutually beneficial relationship with our tenants. Please do NOT purchase a home warranty for your rental properties.
Qwest Property Management, LLC