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One of the questions we hear from new property owners is —
“Should I buy a home warranty plan for my rental?”
It sounds appealing — a fixed annual fee that covers repairs when things break.
But in practice? Home warranties often create more problems than they solve.
I’m Mendell Gosnell with Centurion Real Estate Management, and in this blog article, I’ll explain why we generally do not recommend using home warranty companies for rental properties — and what we suggest instead.
WHAT A HOME WARRANTY IS
A home warranty is a service contract that covers the repair or replacement of systems and appliances for a set annual fee — usually around $500 to $800 per year, plus service call fees each time a technician visits.
In theory, it sounds great — predictable costs and less surprise expenses.
But rental property owners quickly learn that these plans are designed for owner-occupied homes, not investment properties.
THE BIGGEST PROBLEMS WITH HOME WARRANTIES
Here’s why Centurion typically advises against home warranty companies for rental properties:
1️ Slow Response Times — Warranty companies use third-party contractors who often take days or weeks to respond.
That means frustrated tenants, longer downtime, and increased risk of property damage.
2 ️ Lack of Control — You don’t get to choose who does the work, when they show up, or how well the repair is done.
Many of these contractors prioritize warranty work last — because the pay is low and approvals are slow.
3️ Limited Coverage — Most warranties exclude “pre-existing conditions,” “improper installation,” and even normal wear — meaning you still end up paying out of pocket.
4️ Poor Communication — You’re stuck in the middle between the tenant, the warranty company, and the contractor — and no one is fully accountable.
5️ Tenant Satisfaction Drops — When the air conditioner fails in August or the water heater dies before the weekend, waiting a week for warranty approval is unacceptable — and it reflects poorly on you as the landlord.
HOW CENTURION HANDLES REPAIRS DIFFERENTLY
At Centurion, we’ve spent years building a network of trusted, local vendors who know our standards — fast, reliable, and cost-effective service.
When something breaks, we can typically dispatch the right professional within 24 hours, and many times the same day.
Our vendors know our systems, your properties, and how to communicate directly with tenants and our team.
We don’t waste time waiting for approvals or dealing with call centers — we focus on getting it fixed quickly and correctly the first time.
That keeps tenants happy, protects your asset, and often saves you money compared to a delayed or low-quality warranty repair.
THE BOTTOM LINE
Home warranties sound convenient, but for rentals, they usually cause more delay, stress, and cost than benefit.
At Centurion Real Estate Management, we recommend direct vendor relationships, preventative maintenance, and proactive management instead.
That approach delivers faster service, better communication, and higher tenant satisfaction — which means fewer turnovers and better returns for you.
If you’re considering a home warranty for your rental — talk to your property manager first.
We’ll help you understand what’s covered, what’s not, and whether it’s really worth it for your situation.
