Why You Shouldn't Use Home Warranties on Your Rental Properties

Home Warranty Isn't the Safety Net You May Believe

Home warranties have become increasingly popular in recent years, promising peace of mind for homeowners and landlords alike. These service contracts claim to cover the repair or replacement of major appliances and systems in a property, offering a sense of security against unexpected expenses. While home warranties may seem like an attractive option for landlords, there are several reasons why they should be approached with caution or, in our belief, avoided altogether.


The Promise of Home Warranties

Home warranties are marketed as a safeguard against costly repairs and replacements, making them appealing to landlords who want to minimize their maintenance expenses, especially the costly expenses that can arise with appliances. Typically, a landlord pays an annual or monthly premium to a home warranty company, which then promises to cover the repair or replacement costs of specific items, such as HVAC systems, plumbing, electrical systems, and major appliances, when they break down due to normal wear and tear.


Drawbacks of Home Warranties for Landlords


Limited Coverage:

Home warranties often come with a laundry list of exclusions and limitations that landlords may not be fully aware of when signing up. Common exclusions include pre-existing conditions, improper maintenance, and certain parts of covered systems or appliances. This limited coverage can lead to disputes with the warranty provider, leaving landlords with unexpected out-of-pocket expenses.


Service Call Fees:

When landlords request service under a home warranty, they typically have to pay a service call fee, which can range from $50 to $125 or more per visit. This fee adds up quickly, especially if multiple service calls are needed in a short period, removing any potential cost savings.


Delayed Repairs:

Landlords often find that the repair or replacement process through a home warranty company is slow and inefficient. They may need to wait for extended periods before technicians are dispatched to their property, causing inconvenience to tenants and potentially affecting their satisfaction.


Subpar Service:

Home warranty companies have a reputation for working with contracted service providers who may not always deliver the highest quality of service. Landlords may find themselves at the mercy of these contractors, who may prioritize cost-cutting over providing a lasting solution to the problem.


Lack of Control:

Landlords who rely on home warranties for maintenance and repairs may lose control over the choice of contractors and the quality of work performed. This can be particularly problematic if the landlord has a preferred vendor or wants to ensure repairs are done to a certain standard.


Cost vs. Benefit:

When you consider the annual premium, service call fees, and potential out-of-pocket expenses, the cost of a home warranty can quickly exceed the actual value of the repairs or replacements covered. Landlords may find that setting aside a maintenance fund or carefully vetting contractors is a more cost-effective approach.


All of these outlined drawbacks are exacerbated when landlords and homeowners contract with property management companies. The additional communication required can result in horrible experiences for tenants, homeowners, and property managers alike. While home warranties may initially seem like a prudent investment for landlords, the drawbacks and limitations associated with these service contracts often outweigh the benefits. Landlords are better off exploring alternative strategies for managing maintenance and repair costs, such as setting aside a dedicated maintenance fund or establishing relationships with reputable contractors.

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Tucked away in the heart of Downtown Las Vegas, just steps from the flashing lights of Fremont Street, the Mob Museum offers something wildly different than the typical Vegas experience. Officially known as the National Museum of Organized Crime and Law Enforcement, this one-of-a-kind destination invites you to step into the gritty, gripping world of the American mob—and the people who tried to stop it. Housed in a historic 1930s U.S. Post Office and Courthouse—where real mob hearings took place—the building itself sets the tone. This is no ordinary museum. It’s immersive, intense, and at times, jaw-dropping Your journey begins at the top, tracing the rise of organized crime through Prohibition. Real artifacts tell real stories, including the actual bullet-riddled brick wall from Chicago’s infamous St. Valentine’s Day Massacre. As you make your way down each floor, the exhibits dive deeper into how the mob operated, how Las Vegas became a haven for crime families, and how law enforcement fought back - with wiretaps, undercover agents, and televised trials that captivated the nation. One of the museum’s standout features is its fully restored courtroom, where the 1950s Kefauver Hearings were held - bringing mob activity into the public spotlight for the first time. It’s surreal to sit in the very space where America watched the mob be put on trial. Downstairs, visitors can try hands-on exhibits like a police training simulator, or step into a forensics lab to test their CSI skills. But the real hidden gem is in the basement: The Underground, a fully functioning speakeasy and distillery that serves up Prohibition-style cocktails and house-made moonshine. It's a delicious way to end your tour through history. Beyond the drama and intrigue, what makes the Mob Museum truly special is how educational and engaging it is. It’s not just about the mobsters—it’s about the impact organized crime had on American culture, law, and justice. Whether you're a true crime junkie, history buff, or just looking for something different to do in Vegas, the Mob Museum is a must-visit. It’s raw, real, and fascinating from start to finish. L ocation: 300 Stewart Ave, Las Vegas, NV Hours: Daily 9am–9pm Admission: Starts around $35; discounts available for Nevada residents, students, military & law enforcement Don’t Miss: The Underground speakeasy (open later hour s)
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McKenna Property Management is proud to have earned over 800 five-star reviews on Google — real feedback from property owners, investors, agents, and tenants all across Las Vegas who’ve experienced the difference working with us makes. Led by our owner and broker Jenni McKenna, with over 30 years of local real estate experience, we focus on making property management smooth, efficient, and refreshingly personal. We don’t believe in one-size-fits-all service or sending you in circles with automated systems. When you call our office, you’ll get a live person on the phone — not a robot or endless phone tree. Our team is organized into specialized departments, so whether it’s leasing, maintenance coordination, accounting, or HOA coordination, you’re always connected with the right person who knows how to help. That means quicker responses, clearer communication, and less frustration all around. Owners and investors trust us to handle everything from marketing and tenant screening to rent collection and repairs, helping maximize returns without the usual headaches. Agents feel confident referring clients to us because they know we respect their relationships — when it’s time for their clients to buy or sell, we never interfere or poach. Our focus remains solely on providing top-tier property management, while preserving and protecting their business. And tenants enjoy well-maintained homes, easy online systems, and a team that truly listens and responds. At McKenna Property Management, we treat every property like it’s our own and every person like part of our community. If you’re looking for reliable, experienced property management in Las Vegas with real people and real results, we’d love to connect.
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