How to manage a property in Israel by remote control?
Many Israelis and foreign residents choose to acquire a property in Israel in order to use it as an investment which will provide them with a fixed passive monthly income. Others choose to acquire a holiday apartment inIsraelin which they can stay when on vacation.
The owners of these apartments are sometimes uncertain how to protect, look after and manage their property.
Some transfer the management of the property to relatives who live in Israel, but this can sometimes lead to family conflicts. This is why many times an objective management company can be an attractive solution. A management company is responsible for attending to all the aspects relating to the property and representing their owner's interests.
The property owners who use a management service relieve themselves of the trouble and bother which comes with managing the property and coping with the bureaucracy and Israeli mentality. In this way they allow themselves to enjoy the fixed monthly return and a worry-free property inIsrael.
When you choose to appoint a management company to look after your property, it is important to make sure that the payment to the company includes the following services:
Property owners in Israel who acquired a property in order to use it as a holiday home, and are not interested in renting it, should also make sure to obtain the following services: checking the standard of the property from time to time, paying the bills to the relevant authorities, collecting mail and sending it on, preparing the property before the arrival of the owners and taking charge of the cleaning and laundry services etc.
The service charge which management companies usually take for managing the property varies from 9% – 11% of the income from the property (usually about one month's rent) and is determined according to the state of the property, its location and in accordance with the services provided.
It is important to make sure that the management company does not collect a management service charge when the property is not rented out and that contact with the company can be ended at any time with a reasonable period of prior notice. It is desirable that the management company does not collect a negotiation service charge from the tenants, but represents the interests of the property owners exclusively.
By property manager and advocate Neta Bachrach
www.homeandaway.co.il
The owners of these apartments are sometimes uncertain how to protect, look after and manage their property.
Some transfer the management of the property to relatives who live in Israel, but this can sometimes lead to family conflicts. This is why many times an objective management company can be an attractive solution. A management company is responsible for attending to all the aspects relating to the property and representing their owner's interests.
The property owners who use a management service relieve themselves of the trouble and bother which comes with managing the property and coping with the bureaucracy and Israeli mentality. In this way they allow themselves to enjoy the fixed monthly return and a worry-free property inIsrael.
When you choose to appoint a management company to look after your property, it is important to make sure that the payment to the company includes the following services:
- Locating the tenants after carrying out a professional selection and an investigation of their economic ability.
- Setting a maximal rent for the apartment in accordance with the going rate and market demand.
- Arranging a rental agreement through a lawyer which takes into account the type of property and the needs of its owner. It is preferable that the signing of the contract takes place in the presence of a lawyer who will make sure to obtain suitable guarantees and collateral.
- Preparing the property for occupation and making photographic documentation of the existing state of the property and its condition.
- Transferring of utility bills into the name of the new tenants.
- Periodic checking that the tenant is keeping to his contractual obligations and responding to every problem which crops up with the property.
- Collection of rent from the tenants.
- Continuous maintenance and dealing with all defects after obtaining a meaningful discount from trusted professionals.
- Collecting the property owner's mail and representing his interests before the house committee.
- Providing a periodic report to the client which sums up the activity at the property.
- Continuous legal advice.
- Making sure that the tenants vacate the apartment on time or, alternatively, renewing the contract for an additional period.
Property owners in Israel who acquired a property in order to use it as a holiday home, and are not interested in renting it, should also make sure to obtain the following services: checking the standard of the property from time to time, paying the bills to the relevant authorities, collecting mail and sending it on, preparing the property before the arrival of the owners and taking charge of the cleaning and laundry services etc.
The service charge which management companies usually take for managing the property varies from 9% – 11% of the income from the property (usually about one month's rent) and is determined according to the state of the property, its location and in accordance with the services provided.
It is important to make sure that the management company does not collect a management service charge when the property is not rented out and that contact with the company can be ended at any time with a reasonable period of prior notice. It is desirable that the management company does not collect a negotiation service charge from the tenants, but represents the interests of the property owners exclusively.
By property manager and advocate Neta Bachrach
www.homeandaway.co.il
