On paper, a home warranty sounds like a dream...

“Low monthly cost.”
“Covered repairs.”
“Peace of mind.”

What rental property owner wouldn’t want that?

But in the real world — especially in long-term rental property management — home warranties often turn out to be one of the most expensive ‘cheap’ decisions an owner can make.

Let’s pull back the curtain.

The Sticker Price Is Just the Beginning

Most home warranties cost anywhere from $600–$900 per year, plus a service call fee (often $75–$125 per visit). That alone surprises many owners.

But the real cost doesn’t show up neatly on a receipt.

It shows up in:

• Tenant frustration
• Delayed repairs
• Repeated service calls
• Higher turnover
• Lost rent
• Management inefficiency

In other words… death by a thousand paper cuts.

The Contractor Problem No One Talks About

Home warranty companies don’t use your trusted local vendors.

They use contractors willing to accept extremely low payouts — sometimes less than what a reputable company charges just to show up.

That usually means:

• New or inexperienced technicians
• Overloaded schedules
• Minimal incentive to fix the issue correctly the first time
• Temporary or patchwork repairs

Great contractors don’t need to accept bargain-basement pricing — and most won’t.

The Customer Service Black Hole

If you’ve ever called a home warranty company, you know the drill:

🎶 Hold music.
⏳ Long wait times.
🔁 Transferred again.

Now imagine doing that multiple times, for multiple properties, while tenants wait.

Most property management companies face a tough choice:

• Sit on hold for hours (time = money), or
• Bill the owner for the additional administrative time required to chase updates

Either way — someone pays.

And it’s usually the owner.

Communication Breakdown (With Real Consequences)

One of the most consistent problems with home warranty claims is poor communication:

• Tenant contact info not passed to the contractor
• Contractors not scheduling directly with residents
• Missed appointments
• “We tried to call” when no call was made
• No updates provided to management or ownership

From the tenant’s perspective, it feels like no one cares.

And perception matters.

The Biggest Cost: Tenant Experience & Turnover

Here’s the part most owners never see — but property managers do.

When tenants are surveyed, home warranty service calls consistently receive the lowest satisfaction scores.

Why that matters:

The #1 reason tenants move within the same geographic area is poor maintenance experience — not rent increases.

That includes:

• Slow repairs
• Repeated visits for the same issue
• Unprofessional contractors
• Feeling dismissed or inconvenienced

A bad repair experience doesn’t just annoy tenants — it plants the seed to leave.

Turnover Is Expensive (Very Expensive)

One tenant moving out can easily cost:

• 1–2 months of lost rent
• Marketing & leasing costs
• Cleaning & turnover repairs
• Utility bills during vacancy
• Wear-and-tear accelerated by vacancy cycles

Suddenly, that “affordable” home warranty has contributed to thousands of dollars in indirect losses.

That’s the hidden cost.

What Works Better Than a Home Warranty?

A smarter strategy focuses on prevention, preparation, and professionalism.

1. Preventative Maintenance (The Unsexy Hero)

A good property manager doesn’t wait for things to break.

They:

• Change filters on schedule
• Flush HVAC drain lines
• Inspect water heaters
• Monitor roof and plumbing red flags
• Address small issues before they become emergencies

This alone can add years of life to major systems.

2. Trusted, Local Vendors

Local vendors care about:

• Their reputation
• Repeat business
• Doing the job right

They communicate better, show up when scheduled, and stand behind their work.

Tenants notice.

3. The “Rainy Day” Fund (Your Secret Weapon)

Instead of paying hundreds each year to a warranty company, set aside 2–3 months of rent in a dedicated maintenance reserve.

This fund:

• Covers unexpected repairs
• Softens the blow of vacancies
• Prepares you for larger ticket replacements
• Keeps you in control

No approvals. No call centers. No delays.

4. Planning for Major Systems (Yes, There’s a Timeline)

Here’s a realistic snapshot of common home systems:

• HVAC: 12–15 years (longer with maintenance)
• Water Heater: 8–12 years
• Roof (shingle): 15–20 years
• Appliances: 7–12 years
• Plumbing Fixtures: 10–20 years

A knowledgeable property manager can review the age and condition of these systems and help you plan ahead, instead of reacting under pressure.

The Bottom Line

Home warranties promise peace of mind.

But for rental properties, they often deliver:

• Slower repairs
• Poor tenant experience
• Higher turnover
• Hidden costs that quietly erode returns

The best investment you can make isn’t a warranty. It’s good management.

Ready for a Better Approach?

At Back Stage Realty, we believe great property management isn’t about cutting corners — it’s about protecting your asset, your income, and your tenant relationships.

We:

• Prioritize preventative maintenance
• Use reliable, local vendors
• Communicate clearly with tenants and owners
• Help you plan for future expenses
• Focus on long-term returns, not short-term fixes

📞 Call us at 850-729-0399
🌐 Learn more at  www.RentwithBSR.com

Let’s stop paying for problems — and start managing smarter.