Creative Estates is all about saving landlords money, particularly absentee landlords who do not live in Israel. We can help to reduce landlords’ Israeli tax liability and make successful insurance claims.
One of the issues that many non-Israeli landlords are not aware of is the options that exist for reducing their Israeli tax liability. Since all income earned in Israel is liable to taxation, even a property owner who lives overseas is obligated to file and pay income tax on their rental income. It is crucial to take expert advice on how to take care of this properly, particularly if you want to make sure that you are not taxed twice on the same income – first in Israel and also in your own domicile.
Shaun Isaacson, CEO of Creative Estates Israel, is a qualified lawyer and MBA who understands all the ins and outs of income tax. “We are usually able to reduce our clients’ tax liability with careful management of their finances”, he explains. “One of our overseas clients had been paying 10% tax on his rental income, but in consultation with our accountant we were able to reduce his liability to zero by offsetting the depreciation on the value of his property. Any landlord who does not take advantage of our expert advice risks losing money that can easily be saved!”
Creative Estates specializes in saving its clients from getting ripped off by unscrupulous contractors and making short-sighted decisions. “The polite Israeli expression for this is “fryer” – it means someone who is naïve and easily taken advantage of. Insurance companies are notorious for taking advantage of innocent landlords who do not realize that they need to negotiate more aggressively to get the pay-out that they legally deserve”, says Shaun.
“Shimon was managing his own property in Kfar Saba from his home in Canada. He called us one day because a number of pipes under the floor had burst and he didn’t know who to trust to fix them properly. Our maintenance crew took care of it and we took over management of the property. We then turned to his insurance company to make a claim for the costs of repairing the water damage.
“It took a few phone calls and we had to state our case very strongly in order to convince them that we were not willing to settle for their low offer. Being an Israeli lawyer by training meant that the negotiation was easier for me than it would have been for Shimon! Speaking Hebrew like a native means that the person on the other end of the phone does not think that they can get one over on me!”
Shimon’s apartment had clearly been built with sub-standard copper piping, and there were further pipe bursts. Creative Estates took care of them one by one, replacing them with stronger plastic piping so that the problems would not recur, and making successful insurance claims to cover the cost of the work. Not only did we save Shimon a fortune in repair costs, but he also saved on the air fares that he would otherwise have incurred to visit his property and take care of the problems.
Another client, Graham, recently wrote to us: “I have had a home in Israel for over 26 years and my only regret is that I only met up with Shaun two years ago! He is without doubt one of the most professional , efficient, trustworthy and organised person I have met. Nothing is ever too much trouble, no job is too small.”
Many absent landlords are recognizing that deciding not to use a property management company in Israel will cost them more money than paying someone to take care of their interests. We have proven time and time again that taking care of insurance claims and taxation issues on behalf of our landlords can save them a great deal more money than we charge.
Don’t be a fryer! Talk to Creative Estates Israel about managing your property in Israel. We’ll take away your headaches and ensure that tenants are happy, your property is well maintained, and your investment is profitable!