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Q & A With America’s Real Estate Professor: Home Warranties

Home WarrantiesQ. What do you think about home warranty for rentals? Best regards. Azhar, San Diego, Calif.A. I’m glad to see that you are a rental property owner now! I’ve been hearing more and more investors that use home warranties, which is quite a turnaround from a few years ago. I’ll note how these work and a few issues to consider.A home warranty costs about $350-$500 per year. Many sellers provide a home warranty to a buyer at the sale in hopes that gives the seller a little extra protection in case an appliance or other item breaks. And some home warranty companies do a decent job servicing their policies, but some don’t do a good job. Home warranty companies, unfortunately, are some of the most complained about service provid

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