Overseas buyers of property in Israel: What to expect from your property management company
Posted on 31. Jan, 2010 by buyitinisrael in Miscellaneous
By Ruth Rose
Property Manager in Israel ©iStockphoto/Kelly Talele
For many foreign resident buyers of Israel real estate, a pivotal part in their investment decision is the question of who will look after the property in Israel once purchased. The easiest and most convenient solution is to employ a professional property manager to take care of all matters pertaining to the rental and/or maintenance of the property.
If the home is to be rented out then the property manager should manage all issues relating to the tenancy. These may include:
- Finding suitable tenants
- Approving the tenants’ guarantors
- Liaising with the tenants throughout the tenancy period
- Helping with the rental contract and extension after the initial tenancy period
- Collection of deposit and securities on rental
- Collection of rent
- Cleaning before and/or after tenants move in
- Ensuring bills are put into the tenants names
- Regular checks with the relevant authorities that the bills are being paid
- Ensuring the apartment is vacated on time
- Maintenance (in the case of a new apartment, this includes liaising with the builder during the first year/s after taking possession of the property). Every good management company should have an excellent team of plumbers, electricians, handymen , shutter repairmen, airconditioning technicians, damp experts, painters and locksmiths.
- Inspections and meter readings at the beginning and end of tenancy periods
- Liaising with the cooperative body where relevant
In some cases, property in Israel is purchased for personal use as a vacation or holiday home. In this case, the property manager should perform the following duties:
- Bi-monthly inspections of the property
- Cleaning on a regular basis, or as required
- Collection of mail and bills
- Ensuring the bills are paid
- Doing the laundry and making the beds for the return visit
- Liaising with the cooperative body where relevant
- Coordination of deliveries and/or renovations as ordered by the owner.
In all cases, it’s imperative that there is clear and open communication between the property owner and manager. Some management companies maintain such information on a secured website, which property owners can access with a personal code in order to track expenses incurred, and all other information pertaining to his property.
In Israel, the client can expect to pay between 10%-14% plus VAT (16%) of the annual rental income or the potential annual rental income in the event the property is not rented. This service is invaluable to foreign resident homeowners in Israel offering peace of mind knowing that there is someone on site to deal with matters as and when they arise.
The writer works for Yarden Property Services and manages properties in Modi’in, Jerusalem, Beit Shemesh and Yad Binyamin. She can be reached by email at ruth@pskrealty.com or by telephone at +972 8970-0467.
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