Is a Home Warranty Plan for a Vacation Home Worth It?
If you have a vacation home, you should consider getting a home warranty plan. Things break and wear down, even when you don’t use them regularly. Air conditioners stop spinning, freon leaks, the dishwasher pipes can burst. You never know what can happen, and since you’re not there, having a home warranty can protect you and your home away from home.
Sense of Security
If you decide to purchase a second home to use as a vacation property, you know ahead of time that it is a significant financial obligation. You don’t want to put yourself in a situation where you’ll be stuck paying for things that break entirely out of your pocket if you can help it.
The last thing you want to deal with is an air conditioner that doesn’t work when you’re ready to spend some time with your family at your vacation home. Replacing an air conditioner can run anywhere from $3,000 to more than $10,000 to replace. That is a lot of money in one shot for most people. When these headaches happen, you will wish you had a warranty to fall back on.
The best home warranty plans will cover your broken appliances or systems, even if you don’t run them all the time. Home warranties give you peace of mind because you won’t have to deal with an unexpected expense. Instead, you’ll make a phone call and have someone come out to fix the problem right away.
Vacation homes are typically significant investments for owners. If you have home warranty coverage, you can protect your investment. With a home warranty plan, you can rest assured that a trained professional will be available to handle whatever problems come up. By having access to prompt service, you will protect your vacation home.
When you’re at home and something breaks, you’ll probably catch it quickly and take care of it as soon as possible. With vacation homes, it doesn’t work that way. Instead, you might not be there when the plumbing has problems. If you have a representative on-site, you can contact your home warranty company to have a pro go out and take care of the problem.
Rental Vacation Homes
Using a vacation home as a rental doesn’t mean you can’t ever use it. You can use it for up to two weeks every year. As long as you make it available for rent for the remainder of the year, it counts as a vacation home. Realistically, you won’t be booked all of the time, but it creates extra income when you are.
If you’re using your vacation home as a revenue stream, it is even more crucial that you protect the home from damages. Working as a landlord for renters can be difficult, but when you toss in a problem like a broken air conditioner in 100-degree heat, the situation is frustrating for everyone. To keep your 5-star rating from going down, you’ll want to get the issue fixed as soon as possible.
With a home warranty plan, you are a phone call away from getting someone out to the home to get the air blowing cold. Some people prefer to fix these issues themselves, but it’s less of a headache for you to call someone to come out. Instead, having a professional get it done in a timely manner creates the most favorable impression for your clientele.
Possible Tax Deduction
Home warranty plans attached to vacation homes may even qualify you for tax deductions every year if you’re using the home as a source of income. It’s an expense that you can write off on your taxes because the home is not your primary residence. Since your vacation home would otherwise sit empty for most of the year, by making it available to rent, you’ll pull in some extra income and reap a few additional benefits like a tax deduction, too.
Other deductibles include other things you pay for, like regular maintenance or updates outside the home. These expenses do not count like they would at the house you live in full time. Being able to use them as deductibles lowers the taxes you owe every year. It’s a sound financial investment to have a home warranty because it reduces your taxes and protects your rental vacation home in one fell swoop.
Why a Home Warranty Plan Is Worth It
Coping with problematic appliances is not something anyone looks forward to, especially when you’re supposed to be on vacation with your family. You could get it taken care of before or soon after arriving with a home warranty. If a professional is a phone call away, you can handle issues quickly. When you use your vacation home as a rental, it’s even more critical to deal with problems as soon as possible. As a bonus, you can use the expense as a tax deduction, too.