Safeguarding Your Israeli Real Estate Investment

For individuals who invest in real estate in another country, a property management company can be a real lifesaver. Property management companies perform a variety of duties that would otherwise be assumed by the property owner; e.g., marketing properties, screening and approving tenants, collecting rent, responding to complaints from tenants, and overseeing maintenance and repairs. A property management company also brings professional experience and knowledge to what can be the bewildering world of real estate to unseasoned property owners. There are many distinct advantages to using a property management company. Here are just a few: 1. Better tenants. A responsible property management company will take the time to properly screen rental applicants and ensure the best candidates are chosen for your rental. Better tenants translate to: more timely payments, longer occupancies, less damage to units, and fewer complaints. 2. Less legal risk. Because of their experience in this area, property management companies can better assess information on potential tenants that could leave you vulnerable to scams or lawsuits. Real estate laws vary from country to country, and it’s critical that an out-of-area property owner be protected from unintended violations of law or code. Property management companies can also handle the unpleasant task of evicting tenants with less risk of triggering litigation. Property management companies can also ensure that owners are in compliance with tax laws and advise on proper deductions, as well as maintain necessary documentation and forms. 3. Reduced repair and maintenance costs. Most property management companies have their own maintenance staff, as well as access to a network of bonded and licensed contractors. Savings can come from more timely initial repairs, volume discounts, and close oversight of maintenance and repair work by knowledgeable managers. Systematic preventive maintenance will also help maintain and increase the value of your investment over time. 4. Reduced stress. Landlords often are forced to deal with such unpleasant tasks as evicting tenants, handling emergencies that occur in the middle of the night, repairing wrecked properties, and completing mounds of paperwork. A property management company relieves property owners of such burdens, creating less stress and more time for its clients. Property owners also find more freedom when they are not forced to live near properties in which they invest. Overseas real estate investments suddenly seem no more troublesome than ones in the same city. We’ve talked about the advantages to using a property management company, but are there any downsides? Well, there is a cost. Property management companies typically charge about 5 – 10% of each monthly rental for their management fee, as well as an initial fee usually equivalent to one month’s rent. However, when you consider what you are paying for, going this route is usually a bargain. If you are person who loves hands-on work in real estate, who plans to live near the properties you own, and who has a great deal of extra time on your hands, you may not need a professional property manage. Otherwise, we encourage you to consider the service a bargain!