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Should I Put a Home Warranty on My Rental Property?
BanCal Property Management • July 23, 2021
We know you’re interested in keeping maintenance and repair costs down. It’s an important part of building ROI on your investment. A lot of landlords and investors ask about home warranties. Maybe you have one on your own home, and it works out well.
However, you’ll find that most
San Francisco property management companies advise against a home warranty.
Local property managers know that these warranties won’t do much for you when we’re talking about a home that you’re renting to tenants. Warranties actually tend to cost more time and money, and they almost always lead to frustration for you and your tenants.
Here’s what we’ve found can often happen with home warranties:
- Communication is lacking
- There’s no sense of urgency
- Vendors don’t always impress us
If you have a home warranty in place right now, we’ll work with it as best we can. However if you’re trying to decide whether or not to buy one, we recommend against it.
GOOD MAINTENANCE POLICIES VS. HOME WARRANTIES
With preventative maintenance programs and
routine inspections, you can do much better for your investment property than a home warranty. Let’s take a closer look at what they really include.
1. WARRANTY COMPANIES AREN’T GREAT AT COMMUNICATING WITH SAN FRANCISCO PROPERTY MANAGEMENT COMPANIES
You buy a home warranty expecting that when something in the property breaks, the warranty company will replace or repair it – at no cost to you.
That’s not always what happens.
Bad home warranty experiences start with bad communication. Most warranty companies are slow to respond when a claim is filed. We’ve also noticed a lack of transparency between the warranty company and everyone involved; the property owner, the property manager, the tenants, and the vendors.
You may have to wait two or three days just to get a vendor from the warranty company out to assess the problem. That doesn’t mean it will be fixed in those two or three days; typically the vendor has to report back to the warranty company before any work can begin. This is problematic if there’s a habitability issue that needs immediate attention.
2. DREADFUL DELAYS IN MAKING REPAIRS AND RESPONDING TO MAINTENANCE
Safe and habitable San Francisco rental properties are non-negotiable. You have to provide a well-maintained property for your tenants to rent. As property managers, we prioritize responding to
maintenance concerns and repairs, whether they’re emergency issues or routine problems.
Warranty companies do not move so quickly.
Waiting for a home warranty company to complete work in a timely manner will damage your relationship with your tenants and may put your property at risk. They do not work quickly, and there is no sense of urgency.
As you know, providing a great customer experience is one of the most important things you can do when renting out a home. With habitability issues come legal issues. Tenants have a right to live in a home with heat. They need running water and safe electricity. Making them wait for repairs that could be taken care of by our team of vendors in a day or two is not a great way to do business.
3. SAN FRANCISCO PROPERTY MANAGEMENT COMPANIES CANNOT CHOOSE VENDORS WHEN WARRANTY COMPANIES ARE USED
We pride ourselves on using the best vendors and contractors we can find. We have established relationships with these professionals, and we benefit from their attention to our properties and their preferred pricing.
Unfortunately, the vendors a warranty company will send over are not always the best. Their job, when they’re working for the warranty company, is to complete the work as cheaply as possible. That can lead to faulty or incomplete work. Using cut-rate vendors is a great way for home warranty companies to save money, but it’s a terrible way to protect the condition of your investment.
Here’s what we suggest.
Read the fine print of any potential home warranty plan. You’ll realize that not everything you expect to be covered will actually be covered. There’s very little value to be found in a home warranty, even if you buy an older home.
GET HELP WITH SAN FRANCISCO PROPERTY MANAGEMENT
Good San Francisco property management is more valuable than a home warranty. You can be you’re your investment is protected, and you’ll know your tenants are having a great rental experience.
Talk to us before you buy a home warranty. We’ve been doing this since 1987, and we know how to bring you the best in San Francisco property management.
As an investor, you need to know the laws or partner with a professional San Francisco property manager who can keep you above board.
Welcome back to understanding your options for rehab loans. In Part 1 , we explored the benefits and various types of rehab loans available to help you finance your property. We also discussed the key qualifications and terms to consider when applying for a rehab loan. In this second half, we will explore the practical aspects of securing a rehab loan and finding the right lender for your needs, helping you navigate the options, and identifying the best fit for your investment strategy. Additionally, we will dive into the rehab loan application process, providing you with a clear understanding of the steps involved and what you can expect along the way. Whether you're a seasoned investor or just starting, these practical tips and strategies will help you unlock the full potential of rehab loans. So, let's continue our journey toward financial empowerment and dive into the essential steps for securing and utilizing rehab loans effectively.
Are you a real estate investor looking to take your business to the next level? Understanding your financing options is crucial in empowering your success. One popular financing solution for real estate investors is rehab loans. Whether you're a seasoned investor looking to flip properties or a first-time investor wanting to renovate and rent out a property, rehab loans can provide the necessary funds to complete your projects. We will explore the various options available to real estate investors when it comes to rehab loans. From traditional banks to private lenders, we will break down the pros and cons of each option, helping you make an informed decision about which financing avenue best suits your needs. By delving into the world of rehab loans, you will gain insight into the different types of loans available, the eligibility requirements, and how to maximize your chances of obtaining the necessary funding. Unlock the power of rehab loans and take control of your real estate investment endeavors today. So, whether you're a novice or an experienced investor, this is the ultimate guide to understanding your options for rehab loans. Let's get started on your journey to financial empowerment.
Our CEO, Tammy McNaught , was recently interviewed by ideamensch , where she shared insights into her remarkable journey and vision for BanCal Properties. As a real estate pioneer with a sincere passion for making a difference, Tammy built a 25-year career in both retail and property management. Her journey began in the retail world, where she worked her way up from an entry-level position to running multiple categories and managing operations in North and South America, the UK, and Ireland. Driven by a desire to bring her visions to life and work independently, Tammy transitioned to the dynamic and ever-evolving field of property management. As the owner of a woman-owned business, she’s dedicated to tearing down barriers and adding value to every project, distinguishing BanCal Properties from the competition with measurable benefits to investors who partner with her in the competitive Bay Area market. Tammy lives and works in San Francisco. She has a natural ability to inspire and empower others to work toward a common goal, achieving remarkable outcomes both individually and for the company. When she isn’t leading her superstar team at BanCal, Tammy enjoys an active lifestyle, traveling, and exploring the world. Check out her interview below:
Emergencies can strike at any time, and as a property owner or manager in the Bay Area, being prepared is crucial to safeguarding your rental units and ensuring the safety of your tenants. From natural disasters like earthquakes and wildfires to human-made crises such as power outages and security threats, having a comprehensive emergency preparedness plan is essential. Here’s how to create a robust crisis management plan tailored to the unique challenges of the Bay Area.
The road to selling a home can be a long one. To keep up with the competition, landlords are tirelessly seeking ways to boost the value of their rental properties. Strategic home upgrades and renovations are key to attracting sought-after tenants and vastly increasing the property's overall worth. Landlords should consider these essential enhancements when looking to elevate their properties in San Francisco's demanding landscape.
Dealing with difficult tenants can be challenging for landlords. Whether it's frequent complaints, payment issues, or property damage, conflicts with tenants can disrupt the harmony of your rental property. However, handling these situations with professionalism and tact to maintain positive landlord-tenant relationships is essential. Let's explore effective conflict resolution strategies for landlords facing problematic tenants.
The rise of remote work has revolutionized how we approach our professional lives. No longer constrained by the physical boundaries of an office, workers now have the flexibility to work from the comfort of their own homes. As a result, the rental market in cities like San Francisco is undergoing a transformative shift. In this blog post, we will explore the impact of remote work on San Francisco's rental market and provide practical tips on navigating the changing landscape.
The impact of tech companies on the San Francisco rental market has been profound, reshaping the city's real estate landscape in multiple ways. With the rise of technology giants establishing headquarters and attracting a high concentration of top talent, the demand for housing has surged, leading to significant challenges and opportunities for renters, landlords, and real estate professionals in the city.
Becoming a first-time property investor in the competitive Bay Area rental market can be an exciting venture. However, it's important to navigate this new role with knowledge and preparation to ensure a successful and profitable experience. Whether you have a single property or building a rental portfolio, here are five tips for first-time investors to prepare for professional management of your rental property.
With the constant advancements in technology, nearly every industry has experienced transformation, and the property management sector is no exception. In San Francisco, where real estate is a key driver of the local economy, the role of technology has evolved to become an integral part of property management practices. In this blog post, we will explore the impact of technology on property management in San Francisco, discussing how it has revolutionized various aspects of the industry. From leveraging artificial intelligence and automation to optimizing operations and enhancing tenant experiences, technology is shaping the future of property management in the vibrant city.
In the bustling cityscape of San Francisco, a fascinating trend is quietly reshaping the traditional fabric of living spaces—welcome to the era of co-living. As the cost of living continues to skyrocket, residents are seeking innovative solutions to meet their housing needs. Enter co-living spaces – a concept that is rapidly gaining popularity and transforming the housing landscape. Picture a place where shared quarters and amenities redefine how individuals approach housing in the Bay Area. It's all about embracing the spirit of togetherness and community, offering an innovative solution to the ever-growing demand for affordable and sociable living arrangements.
The leasing world can be a complex environment, influenced by many factors that ultimately determine rental rates. As a property owner, landlord, or real estate professional, it is crucial to understand the leasing market's drivers deeply. Each factor plays a significant role in shaping the leasing market dynamics, from the location of a property and market demand to economic conditions and property features. Here are some factors that play a significant role in shaping the leasing market dynamics.
San Francisco, with its vibrant neighborhoods and diverse activities, attracts millions of visitors annually. As a property owner, the idea of capitalizing on the city's popularity with short-term rentals may be appealing. However, before diving into this venture, it is important to consider the pros and cons associated with short-term rentals in San Francisco. This blog post will explore the benefits and drawbacks of operating short-term rentals in the city and provide valuable insights for property owners.
Managing seasonal trends in San Francisco's rental market is essential for landlords and tenants alike. The city's rental landscape experiences significant changes during the summer and winter seasons. By being aware of these trends and implementing effective strategies, landlords can maximize their rental income while tenants can secure the best deals. Follow along to explore San Francisco's summer and winter rental market dynamics.
As a landlord in San Francisco, protecting your investment and ensuring the safety and satisfaction of your tenants are important. One way to achieve these goals is through regular professional property inspections. While San Francisco has a unique rental market and specific regulations, these advantages can apply to landlords in any location. Follow along to explore the benefits of professional property inspections, specifically in San Francisco.
As a landlord in San Francisco, it's important to keep your rental properties in top shape, not just for the longevity of your investment but also for your tenants' satisfaction. So, what can you do to ensure your rental homes are well-maintained and offer tenants a safe and enjoyable living experience? Simple: follow a comprehensive property maintenance checklist. We’ve put together the ultimate property maintenance checklist that's tailor-made for San Francisco landlords - so that you can stay ahead of essential tasks and prevent major issues before they arise.
Deciding whether to sell or rent your San Francisco property can be tricky. Both options have pros and cons, and the best decision depends on various factors such as financial goals, market conditions, and personal circumstances. In this blog post, we will explore the considerations involved in this decision-making process, providing insights into when renting out your San Francisco property might be a better option.
Renting out a property is a great way to earn an additional source of income. However, before that, it’s important to ensure that your rental property is in a condition that will attract renters and persuade them to stay longer. Upgrading your property doesn't only make it look more appealing to renters, but it also helps create an environment they would love to call home. Here are smart upgrades you can make to your property before putting it on the rental market.
At BanCal, we understand the importance of adaptability and continuous improvement to drive success for property owners, landlords, and real estate professionals. With this same spirit, we are excited to unveil our rebranding efforts, representing a pivotal moment in our journey. We present our refreshed logo, symbolizing our growth and dedication to serving our clients better. With careful thought and consideration, we have redesigned our visual identity to embody the professionalism and expertise that BanCal has always represented. Our new logo features a clean and modern design, incorporating elements that reflect the intricacies of property management. These subtle nuances communicate diligence and commitment to delivering exceptional service at every turn. At BanCal, we understand the importance of adaptability and continuous improvement to drive success for property owners, landlords, and real estate professionals. With this same spirit, we are excited to unveil our rebranding efforts, representing a pivotal moment in our journey. We present our refreshed logo, symbolizing our growth and dedication to serving our clients better. With careful thought and consideration, we have redesigned our visual identity to embody the professionalism and expertise that BanCal has always represented. Our new logo features a clean and modern design, incorporating elements that reflect the intricacies of property management. These subtle nuances communicate our attention to detail and commitment to delivering exceptional service at every turn.
When it comes to managing properties in San Francisco, it goes beyond the task of maintaining brick and mortar. At BanCal Properties, our commitment lies in creating vibrant communities that enhance the well-being of residents. With unwavering dedication to exceptional service, we possess a deep understanding of the local market. Collaborating closely with property owners and tenants, we strive to cultivate environments that foster connection, engagement, and a higher quality of life. Our comprehensive range of services encompasses everything from tenant screening to property maintenance, ensuring that properties are well-maintained and visually appealing. However, our approach extends beyond the realm of physical property management. We place importance on nurturing a sense of community, facilitating seamless communication, and supporting local businesses. Through our organization of social events, implementation of sustainable initiatives, and active involvement in supporting local charities, we are more than just property managers - we are dedicated community builders in the heart of San Francisco.
As a property owner or investor in San Francisco, maximizing rental income is a top priority. However, with the city's highly competitive rental market, standing out and attracting tenants willing to pay top dollar can be challenging. By following a few tips and working with a property management team, you can maximize your rental income and achieve your financial goals.
We are thrilled to share some incredible news that fills us with pride and gratitude. BanCal Property Management has been selected as a finalist for the prestigious 2023 IREM REME Awards in the 'Excellence Award - Corporate' category. This recognition stands as a testament to our commitment to delivering unparalleled value to our clients and our unwavering dedication to the field of property management.
As a landlord, creating an ideal rental listing is essential to attract potential tenants. San Francisco is a competitive rental market, and you want to stand out from the crowd. The key is to highlight the features that tenants are looking for in a rental property. By understanding what tenants look for in a rental unit, you can craft a listing that not only captures attention but also ensures happy tenants and high demand for your property.
Renting out your property in the vibrant city of San Francisco can be an exhilarating and highly profitable endeavor. However, it's essential to recognize the risks of this venture and take proactive measures to protect yourself and your investment. That's where renters insurance becomes indispensable, offering invaluable coverage and peace of mind for tenants and landlords.
Take a look at why technology is so important to how we lease, manage, and maintain homes, and why investing in it is such a good idea.
Rental inspections are an important part of protecting the condition and value of your San Francisco investment.
Remote work is more popular than ever, and your San Francisco rental property needs to be attractive to tenants who work from home.
While remote working doesn’t always benefit San Francisco rental property owners, there are still opportunities to be found when attracting remote workers to your rental unit.
We’re talking about all the San Francisco rules regarding mold and mildew in a rental property and some of the things California’s state laws require you to disclose to your tenants.
Here’s our list of 10 amenities that will increase the value of your San Francisco rental property. These things will help you in the short term (think higher rents and better tenants) and the long term (when you sell, you’ll sell for more).
Tenants will insist that everything is wear and tear and landlords will want to believe that anything they need to repair or replace is due to tenant damage.
Every investor has a different definition of success, and as you’re working towards achieving your own goals, make sure you have all the resources you need to become a successful real estate investor.
Here are some best practices in handling those difficult San Francisco tenants.
Onsite managers at your San Francisco building can offer several advantages, but they also come with some unique challenges and difficulties.
We’re here to help. Here’s what you need to know about rent control when you own San Francisco rental properties.
The 1031 exchange allows investors to defer taxes when they reinvest the earnings from one sale into another purchase.
Tenants are subletting their homes without owner approval, or they’re renting out their properties nightly to transient visitors who come and go.
Technology has improved what investors can do and how they do it. If you’re interested in virtual real estate investments in San Francisco, we can help.
The increased rental value is great, but with some of this smart home technology, you’re also attracting benefits like better security, lower turnover expenses, and higher tenant retention.
There are several important documents that you’ll need to keep close as a real estate investor. Let’s take a look at what some of those are.
If you’re trying to build a San Francisco-centric real estate portfolio, you should acquire as many properties as you can. Here are some pros and cons to consider when you’re thinking about what to buy and what not to buy.
We’ve got a brief investment guide, which will help new investors and experienced pros when it’s time to buy a new investment property.
The Americans with Disabilities Act (ADA) requires rental property owners and their property managers to eliminate any risk of discrimination against tenants or applicants who have an intellectual, emotional, or physical disability.
Happy tenants are an important element of a successful rental experience. In San Francisco, tenants have a lot of rights. There are vast tenant protections in place that cover everything from rent control to eviction to security deposits and background checks during the screening process.
We have a few cost-effective ideas that can spare you the expense of a full renovation but also help you reap the rewards of improving your San Francisco rental.
The first responsibility any San Francisco tenant has is to pay rent on time every month. It seems like rent collection should be fairly simple and straightforward. You tell the tenant how much rent is due, and they pay it. The same thing presumably happens month after month.
We’ve found that the owners we work with are usually surprised by three unexpected costs: Vacancy, emergency repairs, and unpaid rent. Here’s how to plan for them.
Multi-family rental properties in San Francisco come with a unique set of challenges for landlords. Keeping up with maintenance and on-time rent collection is something that every property owner knows to anticipate. Noisy neighbors and nuisance complaints, however, and usually unique to apartments.
If you dread tenant turnovers, that’s understandable. They’re often expensive and time-consuming, and while you want to give every detail the attention it needs, you’re also working hard to get new tenants into place quickly.
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