People often ask me how to get the best rate of return by renting their property in Israel. At Creative Estates, we recommend and manage the long-term rental of unfurnished real estate for maximum ROI.
If you own a home near the sea or in an area popular with tourists, you may want to offer it for use by others as a vacation apartment. Particularly if you plan to visit Israel once or twice a year, a short-term rental arrangement may be more convenient, so that you can reserve certain dates for yourself and your family. However, if you choose this option, you would need to charge higher rents during peak rental seasons, to cover your costs during those months when your property will generate no income.
At Creative Estates we generally recommend choosing long-term contracts for maximum rental income, and we advise our clients to rent their Israeli properties unfurnished. This is because the best and most reliable tenants are people who have accumulated their own furniture, and who generally want to stay in one place for a number of years. They tend to pay their rent on time, and they are usually less “needy” and cause fewer problems than short-term tenants, because there is a clear correlation between the arrival of new tenants and things needing fixing!
People often tell me that they don’t need a property management agency because their son, or a neighbor or good friend, has offered to take care of their apartment for them. That’s usually fine until something goes wrong. A leaking pipe on a Friday afternoon, or problems with tenants who prove difficult or demanding, can test the strongest of friendships.
The person looking after your property should check on it at least once a week, opening all the faucets and checking for leaks and blocked drains, particularly in anticipation of changes in the weather that can cause flooding or freezing. They need to be “on-call” 24/7 to respond to emergencies, and they need to know how to get things fixed quickly and competently by reliable tradesman who won’t overcharge you.
If you would like to know more about professional property management and how Creative Estates can help you to maximize the ROI of your real estate in Israel, please contact us today at: shaun@CEIsrael.com or +972-52-652-1096.