A home warranty is a service plan that helps cover the cost to repair or replace major home systems and appliances due to normal wear and tear.
Is a Home Warranty for a Rental Property Worth It?
AHS Home Team
May 31, 2025
Many landlords often wonder if they should get a home warranty for their rental. Learn the benefits of having coverage for your rental’s home systems and appliances.
The AC goes out on the hottest weekend of the year. Your tenant’s dishwasher floods the kitchen hours before their dinner party. The furnace dies in the middle of winter, and you’re two time zones away.
When you’re a landlord, unexpected and expensive disasters are part of the job. And every breakdown comes with a decision: scramble to find a trustworthy service pro, shell out hundreds (or more) in surprise costs, and hope nothing else fails next… or have a plan in place.
A home warranty for your rental property can help take the pressure off. It gives you a way to handle covered unexpected repairs quickly, affordably, and without the stress of going it alone—so your tenants stay happy and your investment stays protected.
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Key takeaways
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A home warranty can help landlords protect their budget, reduce repair stress, and keep tenants happy with quick, reliable fixes.
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Home warranty costs for rental properties may be considered tax-deductible operating expenses—check with your tax advisor to be sure.
What is a home warranty for a rental property?
A home warranty is a home service plan that covers major home systems and appliances when they break down due to inevitable wear and tear. But can you get a home warranty on a rental property? In short, yes.
Home warranties for rental units help take the headache out of home hassles. If a covered item breaks down, all you have to do is place a service request and a qualified Pro will either repair or replace the covered item, giving you and your tenants peace of mind. The key is choosing the right plan for you and your needs.
Home warranty options for rental properties
An American Home Shield® home warranty covers parts of up to 23 home systems and appliances that break down due to wear and tear.
The ShieldPlatinum™ plan
The ShieldPlatinum™ plan covers just about everything: the major parts of 29 home systems and appliances, plus roof leak repair, one free HVAC tune-up per contract term, unlimited AC refrigerant, and double coverage amount for appliances.
The ShieldGold™ plan
The ShieldGold™ plan covers the parts of 14 major home systems plus kitchen and laundry appliances, including your refrigerator, oven, built-in microwave, garbage disposal, dishwasher, and washer and dryer.
The ShieldSilver™ plan
The ShieldSilver™ plan covers the parts of 14 major home systems, including plumbing, electrical, and heating and cooling.
As a landlord, you know that maintaining a home is expensive, especially a rental property. A home warranty for rental properties can help by:
- Reducing out-of-pocket costs for covered repairs or replacements
- Giving you access to trusted local pros when things break down
- Helping you respond to tenant issues, even from afar
- Protecting your budget from the unpredictability of covered home system and appliance breakdowns
How does American Home Shield cover rental properties?
American Home Shield makes it simple to protect your rental, whether it's across town or across the country. While there isn’t a landlord-specific plan, all homeowners can take advantage of the same dependable coverage and support. Here’s how it works:
- Coverage applies to rental properties—just purchase a separate plan for each property you want to protect.
- Own an ADU or guest house under 750 sq. ft.? You can add Guest Unit coverage within 60 days of membership.
- Eligible for a multi-property discount? You could save more when protecting multiple homes.
- Coverage goes beyond a manufacturer’s warranty, helping with covered breakdowns from normal wear and tear, not just defects.
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American Home Shield members enjoy:
- The ability to request service 24/7 when covered stuff breaks down
- Repair and replacement help from local, trusted Pros
- True peace of mind that comes with coverage
Why should I purchase a home warranty for rental property?
Why do you need a home warranty for a rental property? For the same reason you need a home warranty for your personal residence: obtaining a home warranty is probably one of the smartest investments you can make for any property.
Whether you live in the house or rent it out, it’s still a house, and it’s still going to incur inevitable issues with major components of its systems and appliances. That’s why it’s important to consider a home warranty, even if you have homeowners insurance.
Benefits of a home warranty for a rental property
Here’s how a home warranty for rental properties can help you take better care of your rental property as well as your peace of mind:
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Protects your budget from unexpected costs
Covered repairs and replacements are outlined in your plan, so you know what to expect. That means fewer financial surprises when something breaks.
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Supports landlord responsibilities
You're required to provide a safe, functioning home. A home warranty helps you stay on top of essential repairs without scrambling to find a contractor last minute.
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Cuts down on repair stress
When a covered item breaks down, just place a service request and pay your service fee. We’ll connect you with an independent and local repair Pro to diagnose the issue and work on getting it fixed.
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Helps you plan ahead
With predictable costs like your plan agreement fee and Service Fee(s), it’s easier to budget for the year ahead, no guesswork needed.
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Fills the gap that homeowners insurance doesn’t
Homeowners insurance covers the big, unpredictable events. A home warranty helps with the day-to-day stuff that will wear down over time.
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Keeps tenants happy (and in place)
Quick, reliable fixes mean fewer complaints and less turnover—making your job as a landlord a little easier.
What should I consider when considering a home warranty for rental properties?
Overall, the best home warranty for rental property is the one that fits your specific needs for your wallet and property. Here are some of the main factors to consider as you make your choice:
The age of the property
It’s important to consider the age of the rental home and its accompanying appliances and home systems. If it’s an older home with older appliances and systems, home warranty protection is a no-brainer. Even if it’s a newer condo or house, appliances and home systems can still malfunction, especially under heavy use common in rental properties. American Home Shield covers items, no matter their age.
The number of rental properties you own
Another factor to consider when deciding on a home warranty for your rental property is whether or not you have more than one rental. The more rental properties you have, the more you have to manage—the cost of a home warranty may be a small price to pay for convenience.
What coverage is offered
Also, when purchasing a home warranty, make sure you understand every detail about the warranty. What does it cover and exclude? What do common home warranty terms actually mean? The last thing you want to find out when placing a service request is that a particular appliance or home system is not included in the plan. American Home Shield offers clear and comprehensive coverage that helps homeowners feel confident and in control of their homes.
Not sure what plan makes the most sense? Check out our Home Warranty Guide to better understand your options and choose coverage that fits your rental property.
Peace of mind for your guest space.
With warranty protection for your guest unit, you’ll always be ready for visitors.
Find the plan that’s right for you
Whether you’re managing one rental or juggling a portfolio of properties, a home warranty can help you stay in control when the unexpected happens. With American Home Shield, you get comprehensive coverage, dependable service, and fewer surprises—so you can focus on what matters most: keeping your tenants happy and your property running smoothly.
Our 8 Shield Assurances ensure that you’ll get a protection unmatched by any other home warranty providers. Explore our flexible coverage options and see how easy it is to protect your rental property (and your bottom line.)
AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.
