Owning a rental property can be an excellent way to build income and help with financial security. Vacation rentals are a popular way for entrepreneurs to make extra money or even grow a real estate business. By maintaining an attractive property, you can have a continuous flow of tenants.
Of course, like owning any property, there are challenges to having a vacation rental. You need to be committed to upkeep and making updates and renovations when necessary. To protect your investment, it’s helpful to purchase a home warranty on this property.
Renters will love your property when you can offer state-of-art home systems and convenient appliances. By purchasing a home warranty for your Maryland home, for example, you can protect these items and your bottom line. You can also have peace of mind that when something breaks down, you won’t have to spend extra cash or deal with the hassle of trying to find someone reliable to do repairs.
What Every Vacation Rental Needs
When a person rents a vacation property, they’re not just looking for a place to rest for the night. A home or condo should have the latest and up-to-date systems as well as efficient appliances. These will offer all the comforts that tenants want during their time of rest and relaxation.
Your rental property needs a large-capacity refrigerator and a dishwasher that can handle large loads. A built-in microwave, top-loading washers and dryers, and large-volume water heater will come in handy. Because peak vacation times are in the summer, your tenants will need a well-functioning HVAC system to keep them cool. The plumbing and electrical system need to be in good working order as well.
How the Warranty Works
Insurance covers your home against losses and destruction due to catastrophes. These may include fire, high winds, violent hailstorms, or even break-ins and theft. But a home warranty covers issues that insurance wouldn’t. Your plan would take care of repairs or would replace items that stop working properly because of wear and tear. If your appliances stopped working suddenly and without warning, a warranty would come to the rescue.
A warranty typically lasts for one year, though you can renew it. This plan is a good purchase once the manufacturer’s warranty on the item has expired. It will cost around $500 a year and requires no other out-of-pocket costs other than paying for the service call.
Appliances Don’t Last Forever
You could buy the most expensive, high-end appliance available, and it still is going to falter at some point. Hopefully, you’ll get your money’s worth out of it, but you have to expect that it will break down in the future. You need to be prepared for this event, especially if you want to keep a consistent flow of renters in your place.
Having a warranty on hand protects you from having to panic at the moment when a system or appliance goes haywire. At the first sign of trouble, you can file a warranty claim. Then, a technician will come over and assess what needs to happen to get things working well.
You Can Save a Bundle
If you’ve enjoyed success with your vacation rental business, you want to keep more of your income. Aside from paying a property management company, you will have some other maintenance costs here and there. But paying for major appliance and system repairs — or replacing these items altogether — can be expensive for anyone.
When you have a warranty, you won’t have to pay huge repair and installation bills. Consider that putting in a new HVAC system can cost up to $10,000, depending on the size of your property. Fixing complex problems with a fridge, water heater, or washer and dryer can run you hundreds of dollars. If multiple issues happen at once, you could be out several thousand dollars or more.
Instead of having to pay these large bills, you can rely on your warranty to get everything as good as new—without having these massive costs. If you have several properties, these savings can add up and make your business even more profitable.
No Fussing With Finding a Repair Professional
When you need to fix an appliance or system for your rental property, you won’t have to spend the time tracking down someone to provide service. The home warranty company would take care of this. The company will contract with servicers to do all the work — diagnosis, repairs, and installation. This can help you avoid a lot of stress and hassles. You can also have confidence that the technician has the experience and skill to handle the job quickly, so your tenants won’t feel any inconvenience.
If you have a vacation rental, a home warranty is a must. Don’t neglect this benefit if you intend to rent out your place this year. The cost savings are well worth the effort.
All images captured at the stunning Villa Magnan in Biarritz for the latest Zara Home furniture collection.