Eli Shimony - Israeli law firm who represent on all civil/commercial legal issues in Israel.
For any questions please contact us and we will be happy to assist. Email: [email protected], Tel: +972-52-2769773, +972-3-5507155.
Buying a luxury property in Tel Aviv, despite all of its advantages, also entails many costs. Apartments for investment in Tel Aviv can offer a wonderful investment channel, which may produce very handsome profits in the future, but one cannot ignore the many costs entailed in such a property, especially as recently the purchase tax on apartments for investment has been increased. Many people spend the best of their money on an apartment for investment, but at the end of the day try to save on the apartment's management, of all things. Unprofessional management of a property for investment may reduce the property's value drastically, and at the bottom line might even cause the owner significant financial losses. This holds even truer for a property located in Tel Aviv, where managing the property continuously and professionally is even more important in order to protect its value. Before buying an apartment for investment in Tel Aviv, you need to know a few things about the property's management following its purchase.
What is property management in reality?
Many people believe that the hard work ends with the property's purchase, but this is not the case in reality. The truth is that the hard work only begins after the property is bought. The property owner, to make a profit off it, must be knowledgeable about the property's condition at any given moment, and must ensure it is serviced, cleaned, repaired, find a tenant and of course must take care of any problem arising for the lessor. Regular property management can be a full time job in itself. Often, property owners assign the property's management to others.
Property management companies
Property management companies offer property owners regular property management services. Usually, the companies manage the property and everything involved, from finding a lessee to cleaning and repairing the property. In addition, they monitor the property's market value and can even recommend the property owner when he should sell it, or even when dealing with a property buyer, recommend the most relevant and attractive property for him. It is important to remember that property management companies are not volunteers, and they demand large amounts of money for the services they offer. A property owner who wants to save on such costs may also opt to perform himself all property management tasks, however doing so properly requires time and professional knowledge. It is best to conduct cost benefit analysis before deciding on hiring the services of property management company.
Importance of property management for foreign residents
Tel Aviv is the city with the highest percentage of apartments bought by foreign residents in Israel, and in general the percentage of apartments for investment in the city is the highest in the country, with many businessmen who keep an apartment in Tel Aviv while residing outside the city, for whom property management is crucial. An experienced, professional lawyer who manages properties in Tel Aviv is bound to manage the apartment regularly and in real time, out of his commitment to the apartment owner. The roles of the lawyer are many and general, including: preparing the apartment prior to its lease, presenting the apartment to potential lessor, sorting and filtering potential lessor by the apartment owner's criteria and the lawyer's recommendation, negotiating, setting guarantees, collecting and depositing payments, dealing with taxation, dealing with legal problems and day-to-day problems. An experienced attorney will assume the apartment owner's unnecessary work and maximize his or her benefit from the property.
The lawyer as a property manager
A good lawyer who specializes in real estate and is proficient in Israeli law can supervise property management regularly and in the best manner. A "real-estate" lawyer knows market prices, and can recognize the best time to sell or buy a property. Unlike a management company, the service is personal and ensures compliance with the law and securing the best guarantees for the property owner. It is important to ensure that the lawyer's office is in Tel Aviv or its surroundings. Familiarity with the Tel Aviv market, which is significantly different from other markets in Israel, can be very difficult for an outside lawyer. Therefore, it is best to check with the lawyer, that in addition to knowledge and experience in the field of real estate, he or she is also experienced in managing luxury properties in Tel Aviv.
Eli Shimony - Israeli law firm representing clients on all civil/commercial legal issues in Israel. For any questions please contact us and we will be happy to assist.
Email: [email protected], Tel: +972-52-2769773, +972-3-5507155.
The above article is a general information only and it is not intended to replace a legal advice.