The COVID-19 pandemic altered the landscape of the U.S. real estate market, as tenants of multifamily housing units sought the freedom that comes with the additional space and outdoor access offered by renting a single-family dwelling.
“Since 2020, property management and how people want to live has been turned on its head,” said Lindsay Tingler, PCF Construction Practice Leader and and Chief Revenue Officer with PWSC, a PCF company headquartered in Chantilly, Virginia. “Occupancy rates have flipped, and the trend shows no signs of reverting course.”
The continued influx of investment into single-family rental homes provides growth opportunities for property management companies of all sizes but also presents additional risk exposure.
“As these property management companies get bigger, they can become a target for an emboldened plaintiffs’ bar to bring lawsuits,” said Tingler, who possesses a decade of construction insurance and risk management experience. “In such an environment, participating in complementary insurance and risk management programs becomes that much more important.”
“Relying solely on insurance is like waiting for something to go wrong,” said Tingler. “It’s a reactive position that leaves real estate companies vulnerable.”
A rental home warranty, on the other hand, offers proactive protection, fixing systems and appliances before they cause severe damage that applies to insurance. Plus, warranties cover everyday wear.
“Securing a rental home warranty to complement your insurance policy forms an important security system for your business and its bottom line,” said Tingler.
What is Warranty Coverage?
Warranty coverage is a valuable tool to thwart illegitimate habitability claims and quickly resolve justifiable ones. Every U.S. state except Arkansas has an implied warranty of habitability. A landlord or property manager breaches the implied warranty of habitability when inattention or negligence creates a problem that causes a reasonable concern for a tenant’s health or safety.
“PWSC’s HomePRO Warranty covers most major systems and appliances within a home that fall under the habitability definition,” said Tingler. “It was expressly constructed to complement manufacturers' warranties, and to offer additional peace of mind.”
How do you access Warranty Coverage?
Renters are empowered to contact PWSC directly to submit a claim, and the company manages the work orders to completion. The company maintains a network of highly qualified, licensed and insured vendors.
In addition, HomePRO Rental Property Protection transfers the liability related to critical system and appliance repairs to PWSC, removing the contractual relationship between vendors and property managers. PWSC takes responsibility for ensuring every vendor in its national network meets insurance and licensure requirements.
What is PCF Construction?
As a top 20 U.S. insurance broker, PCF Construction designs its insurance and risk management solutions to protect general contractors, real estate developers, artisan contractors and others within the construction sector. Well-versed in risk mitigation and loss control, PCF Construction helps set construction projects in motion, covered and in control. Learn more at construction.pcfins.com.