By Jill Sallis, Property Manager | PMI Navigate | San Antonio, TX
Home warranties sound great on paper. Pay a monthly fee, and when a system or appliance breaks, you call the warranty company, they send someone to fix it, and you're covered. Easy, right?
Well… not exactly.
For homeowners, home warranties might make sense.
But for rental properties, they often create more problems than they solve.
Here’s why property managers—and even landlords—should think twice before relying on a home warranty for rental maintenance.
If you don't have time to read the full details, check out our YouTube video where I break it all down for you! https://youtu.be/bhySVKRc6HM
What Is a Home Warranty?
A home warranty is a service contract that helps cover the cost of repairs or replacements for your home's major systems and appliances due to normal wear and tear.* You pay a monthly premium and a service fee each time a repair is needed.
But buried in the fine print are limitations, delays, and exclusions that can frustrate both landlords and tenants.
The Top 5 Reasons Home Warranties Don’t Work for Rentals
1. Slow Response Times
Tenants expect timely repairs—especially for HVAC, plumbing, or water issues. But most warranty companies:
Take 2–4 days to review a claim
Another 2–4 days to assign a technician
Then more time to schedule the visit
That’s up to 10 days before the issue is even addressed. In property management, that’s unacceptable.
2. Limited Contractor Network
You don’t get to choose your vendor.
Home warranty companies use their approved contractors, who may not be local, reliable, or responsive. If you already have trusted maintenance pros, you won’t be able to use them under the warranty.
3. Frequent Coverage Denials
Even if you’ve paid every month, many companies deny claims based on:
Pre-existing conditions (even if unknown)
Improper maintenance
Partial coverage caps that don’t match the repair cost
So you pay hundreds upfront, and still get stuck with the bill.
4. No Urgency for Emergencies
HVAC outages, plumbing leaks, broken toilets—these are emergencies in rental homes. But warranty companies often treat them like routine calls. That can violate habitability laws, upset tenants, and put your lease agreements at risk.
5. The Math Doesn’t Math
Here’s a real example:
You pay $55/month x 7 months = $385
Add a $100 service fee = $485
All for a leaky faucet that could’ve been fixed faster and cheaper by your usual plumber.
Not Suited for Property Management
Home warranties don’t align with how property managers operate:
You lose control over vendor quality and scheduling
Repairs take too long, frustrating owners and tenants
Multiple visits, repeated denials, and unexpected costs all reflect poorly on the management team
Real-World Examples from My Desk This Week
Case #1: Leaky Bathtub Faucet
8 days from claim to repair
Total cost via warranty: $485
A trusted plumber could’ve handled it in a day for less
Case #2: Running Toilet
6 days just for a denial due to “unknown pre-existing condition”
Still had to call our own plumber after all that
Case #3: Shower Drain Leak into Second-Story Ceiling
Claim denied, even after plumber cut a hole and documented the issue
Owner paid:
$794 in warranty fees
$450 for plumber
$350 to fix drywall and paint
= $1,594 out of pocket
And the warranty company offered to come back—for another $700. That’s not okay.
A Better Alternative: Maintenance Reserves
Instead of relying on warranty companies:
✅ Set aside a percentage of rent each month
✅ Use vendors you trust
✅ Fix issues quickly
✅ Keep tenants happy
✅ Maintain full control over your property’s care
Final Thoughts
As a property manager, I’ve seen firsthand how maintenance issues affect tenant retention, owner satisfaction, and your bottom line. Home warranties are marketed as protection, but in rentals, they often create delay, disappointment, and unnecessary expense.
Want help building a better maintenance strategy?
Let’s connect. At PMI Navigate, we believe in proactive, transparent management—and that starts with taking care of the homes we manage and the people who live in them.
Jill Sallis
Property Manager | PMI Navigate
San Antonio, TX
Sales@pminavigate.com
