Should I purchase warranties for my rental property appliances or equipment?

Feature	Manufacturer Warranty (e.g. Whirlpool)	Home Warranty Plan for Rental Property
What’s Covered	Defects in materials or workmanship for that specific appliance. Usually limited to the appliance itself (parts + labor) during warranty period.	Usually covers many appliances and systems—HVAC, plumbing, electrical, water heater, etc.—for breakdowns due to normal wear and tear. (Liberty Home Guard)
Duration / Term	Often limited (e.g. 1 year base), maybe longer for certain parts, may require registration.	Home warranty contracts are typically annual and renewable. (Green Residential)
Cost Predictability	Lower cost for the warranty itself (for that appliance), possibly free with purchase. After term, repair/replacement cost falls entirely on landlord.	Fixed premium + service fees per claim. Helps budget unexpected system/appliance failures. (Liberty Home Guard)
Out-of-Pocket Expenses	If defect covered, little to none. If damage due to use/misuse, you pay fully. After warranty expires, full cost.	You pay the service call fee/claim fee each time. Also may need to pay beyond coverage caps or for exclusions. (Liberty Home Guard)
Control Over Service / Speed / Quality	More control: you can choose service techs once out of warranty; manufacturer may require certain conditions for valid service. While under warranty, Whirlpool uses authorized service. Usually good quality.	Less control. Warranty companies usually send contracted vendors. Could be delays, vendor quality varies. Critical repairs may take longer. (Pleasanton Property Management)
Scope of Liability	Just the specific appliance; doesn't cover systems or other items. Doesn’t cover tenant damage, misuse, wear‐and‐tear beyond what warranty defines.	Much broader: multiple items across the house. But also many exclusions: pre-existing conditions, improper maintenance, certain parts not covered. (Mass.gov)
Appeal to Tenants / Marketing	Having good brand appliances with valid warranties is a plus, but less visible than whole-house protection.	Could be a marketing advantage: tenants feel more secure that breakdowns will be handled without long waits. Can affect tenant retention. (Liberty Home Guard)
Overhead / Admin	Less overhead (fewer claims, fewer parties). Mostly just keeping track of warranty, receipts, calling for service as needed.	More administrative work: submitting claims, coordinating with warranty provider and contractors, possibly dealing with delays or denials. (Pleasanton Property Management)

⚖️ Which makes more sense – in which scenario

• If the appliance(s) are new and still under manufacturer warranty, that warranty gives very strong protection at low marginal cost. It’s usually your best deal for that appliance.

• If you manage many properties or have older systems/appliances that are more likely to break, then a home warranty might help smooth out costs and reduce emergency surprises.

• If you want high quality / fast repairs, you may prefer sticking with your own contractors rather than going through a warranty provider’s network.

• For critical items (heating, air conditioning, plumbing) in climates with extremes, delays from a home warranty provider could lead to tenant dissatisfaction or even legal issues if habitability is compromised.

✅ Renew if…

1. The appliance is under 5 years old and expensive to replace For dishwashers, fridges, and washers/dryers that cost $700–$1,200+, a $60–$120 warranty renewal can easily pay for itself with one repair call.

2. You want hands-off management Whirlpool’s factory service simplifies coordination — no hunting for repair techs or quotes when a tenant calls.

3. It’s a built-in or specialty model Repairs or parts for built-ins, stainless, or smart appliances tend to be pricier and slower to source. Warranty service gets priority access.

4. Tenant damage risk is low If you rent to careful tenants or screen well, warranty claims are more likely to be accepted.

⚠️ Skip or Drop the Renewal if…

1. The appliance is older (6–10+ years) Warranties often exclude “wear and tear” or cap payouts on aging units. You’ll end up paying service fees for little coverage.

2. It’s a lower-value or easily replaceable appliance If a new dishwasher costs $400–$500, you’re usually better off saving the warranty fee for a future replacement.

3. You already carry a home warranty or maintenance contract Double coverage means wasted money. Choose one plan — preferably the broader one.

4. You prefer your own repair network Warranty companies require use of their service techs. If you already have reliable contractors, the warranty adds friction.

💡 Rule of Thumb for Rentals

• Renew warranties on newer, high-end, or built-in units.

• Self-insure (set aside a small reserve fund) for mid-range or older appliances — you’ll spend less over time and have more control.