This series of blogs is to help my friends and clients that have taken the gamble of renting their current home and purchasing their next home. Being the accidental landlord is not easy, but with some planning and evaluation it can be a fantastic financial move for your future.
Everything breaks! So why not be ready for that expenditure that throws off the entire years cash-flow. Each time a client begins a rental term on a decent property as a landlord, I suggest to them to purchase a warranty. These warranties can be life savers and at a minimum give you the piece of mind that a major equipment failure won’t put you in the red. By purchasing a home warranty you can cover all different levels of equipment and makes replacement a breeze These warranties are typically 1 year terms and they can cover anything from a hot water heater to a furnace. The coverage amount is determined by the size of policy you purchase, which the dollar amount goes up depending on the coverage amount. Up front you spend a few hundred dollars and potentially you save thousands by keeping the warranty active. What happens to many landlords is they have a piece of equipment break and then they go into rescue mode. They do not have time to shop around and make good decisions but they need it fixed quick. With a warranty you know that your problem will be solved quickly and at a very low cost deductible to you. I personally use Home Warranty of America and if you have any questions Julianna Bareford would be a great place to start email@example.com Best of luck and happy Land-lording!