PWSC Launches Industry’s First Warranty Designed for Build-to-Rent Homes

Rhea-AI Summary

PWSC has launched a revolutionary warranty program targeting the build-to-rent housing sector, providing 10 years of structural insurance alongside comprehensive system and appliance protection. This program addresses a significant gap in the market, where build-to-rent properties often lack adequate warranty options. As rental properties gain prominence, this initiative aims to safeguard investors against potential construction defects, fostering better relationships among builders, property managers, and investors. PWSC’s HomePRO warranty is structured for B2B needs, enhancing operational efficiency in property management.

Positive

• Launch of a unique 10-year structural warranty program for build-to-rent homes.
• Addresses the market gap for warranty options in rental properties.
• Enhances relationships between builders and investors, reducing negotiation risks.

Negative

• None.

New warranty program provides 1^st party coverage to protect rental home assets.

CHANTILLY, Va.--(BUSINESS WIRE)-- In a first for the warranty industry, PWSC recently launched a program specifically for build-to-rent homes. The program provides 10 years of structural insurance to PWSC's industry leading system and appliance protection for an all-in-one solution designed to serve institutional investors and property managers.

Single-family rental homes have been growing more popular in recent years, and they now comprise more than 5% of all new builds annually. Construction of these homes as long-term investment properties aligns with growing consumer preference to rent versus buy. Now build-to-rent neighborhoods are popping up across the country, but most are under-protected from construction defects.

Commercially owned homes often lack the same warranty options consumer protections afford traditional homeowners. Insured structural warranty coverage has traditionally been available for purchase by the home builder, not the homeowner, leaving institutional buyers at the mercy of builders who are not obligated to provide them with the standard consumer warranty protections. PWSC filled this market gap by adding its longstanding and trusted structural home coverage to its rental property-focused system and appliance warranty program to meet the unique needs of build-to-rent investors.

“We know that most home defects are latent and happen after the fourth year. Investors felt exposed with no financially viable way to protect their homes or manage major structural defects. PWSC stepped in creating the first warranty solution that puts those investors in control of their coverage,” said Tyler Gordy, president and CEO of PWSC.

Beyond protecting physical assets, PWSC designed the HomePRO build-to-rent warranty to enhance the relationship between builders, investors, and property managers. With demand outweighing current supply by an estimated three million homes and billions of investment dollars pouring into the single-family rental space, both sides of the negotiation could find themselves in a competitive situation. Those who come to the bargaining table with a simple answer to the warranty question will gain a competitive edge.

“Negotiations and defect disputes between builders and investors can be challenging. With rising costs and increased litigation, neither side wants to take on additional risk. PWSC’s warranty eliminates unnecessary exposures for both parties so the relationship focuses on the business of building, not breakdowns,” said Lindsay Tingler, senior director of enterprise sales.

PWSC’s newest HomePRO warranty also helps property owners meet renter expectations with improved operational efficiency and a unique program structure designed for commercial use.

“Warranty programs are supposed to make life easier, but that hasn’t always been the case when large property management companies try to use a program designed for direct-to-consumer applications. We built this program with business-to-business needs in mind. From the coverage and the $0 deductible to the account set-up and system integrations, every component of this program was created with the success of our clients and the satisfaction of their renters as our top priority,” said Russ Weaver, senior vice president of operations.

For more information on HomePRO for build-to-rent homes, visit https://www.pwsc.com/property-managers/build-to-rent-warranties/.

About PWSC

PWSC is nationally recognized as a risk management partner in the home building industry, protecting more than 1.7 million homes from America’s top builders and investors through warranty programs. As the housing market continues to evolve, so does PWSC. With over a century of combined in-house builder experience, the PWSC team is uniquely positioned to lead the charge in offering groundbreaking, comprehensive warranty solutions for every home and every budget. Find more information at www.pwsc.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005054/en/

Lindsay Tingler

800.850.2799

317.306.0083

lindsaytingler@pwsc.com

Source: PWSC

FAQ

What is the new warranty program launched by KFS?

The new warranty program by KFS provides 10 years of structural insurance and comprehensive system protection tailored for build-to-rent homes.

How does the HomePRO warranty benefit investors in build-to-rent properties?

The HomePRO warranty protects investors from construction defects, enhancing their financial control over rental properties.

What impact does the warranty program have on property management with KFS?

The program improves operational efficiency and satisfies renter expectations, benefiting property management practices.

When was the warranty program for build-to-rent homes announced?

The warranty program for build-to-rent homes was announced recently by KFS.

What gap does KFS's new warranty program fill in the housing market?

It fills the gap by providing warranted coverage for institutional investors who previously lacked adequate protection against construction defects.