Home Warranty Plans: Can One Benefit You as an Airbnb Host?
This guest post is brought to us courtesy of Kate Bregovic.
Can a home warranty plan benefit you as an Airbnb Host? As a host, you need to consider that no matter how great a home you have, something might go wrong. A leaking pipe or a broken fridge can put a damper on your ability to host travelers. If you have to rely on your landlord to get things fixed before you can move on with your plans, you may have to wait. And who needs that?
Such delays are unacceptable, so getting problems fixed fast should be your priority. You can’t rely on landlords to deal with problems immediately; you need a better solution.
A home warranty plan for rental property can be such a solution. Home warranties can cover a wide range of home systems and appliances. If they break down, the company will dispatch a repair crew fast. The majority of warranty providers offer an emergency service option. This means you can get any breakdowns fixed very quickly.
Adding a home warranty to boost your Airbnb side-business is a good idea. But how can a home warranty make you a better Airbnb host?
The purpose of a home warranty plan is to cut home appliance and system repair costs to the homeowner. If you’re subleasing a property, your subletting agreement should specify who pays for repairs.
As a host, it’s always a good idea for you to take every possible precaution. Start with providing your guests with good tech and appliances. This boosts the comfort level of your home and makes it more appealing to prospective guests. But even the best tech can break down. So be ready. Unless they cause deliberate damage, your Airbnb guests won’t be paying any repair bills. A home warranty can be a real money saver.
Do your research on a home warranty
Not all home warranties are equal. There are over 180 companies offering this type of service today. Most offer some extensive coverage, depending on the plan. But there are hundreds of plans to choose from. So research the options available to you. Look for plans geared specifically towards rental properties.
Make it clear that you are subleasing as you talk with home warranty companies. Accurately describe your situation. Top providers in the industry are flexible, so you should be able to work out a deal tailored to your situation.
Negotiate with the property owner
As the owner of the property, the landlord is usually the one purchasing the plan. Be ready to persuade the landlord about the benefits of a home warranty plan. Explain to them how a good home warranty plan will pay for home system and appliance repairs.
If any of the covered items break down, they only need to make one phone call to the warranty provider. The provider will deal with all contractors and other people involved in the process.
The biggest benefit of using this coverage is that the landlord doesn’t have to get involved with property maintenance or repairs. Find a plan that allows you as the host to make the call to the provider. That way the landlord doesn’t have to worry about it at all.
How to choose a good home warranty plan
One of the ways in which home warranties differ is in their actual usefulness. Unfortunately, it is quite common for home warranties to turn out to be scams. Also, some companies in the industry have a reputation for claim denials.
To get a home warranty plan that really benefits you, look at the following:
The Provider’s Reputation
Check independent professional review websites and platforms like Yelp. Check out the Better Business Bureau website to see the company’s rating and accreditation status.
Study the Terms and Conditions to make sure you understand all the details. Especially how they apply to sub-leasing as an Airbnb host. Only buy a contract which explicitly states that it covers this situation.
The Coverage Limits
Check out what the maximum payout from the home warranty provider is. Study average appliance repair costs to ensure that it will be enough.
Once you have all the information you need, contact the landlord with your proposal.
Airbnb offers Host Protection Insurance and a Host Guarantee, but neither of these covers the things that a home warranty does. Make sure that you’re fully covered for every contingency!
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Kate Bregovic is a freelance writer with 10 years experience in the financial planning and investment services industry. Find her on Facebook!