Despite ongoing global economic fluctuations, the continuous positive performance of Israel’s property market is nothing short of remarkable. Eye-catching headliners and off-the- charts statistical figures attest to this phenomenon and has attracted many investors, such as yourselves, to consider moving their financial resources to Israel. While the Israeli real estate market is no doubt attractive, it can be challenging to make your way through the bureaucracy and red tape. This article will describe some of these challenges and how a property management lawyer can help you navigate them smoothly.
The term ‘property management’ refers to all operations related to a property – its management, renting and maintenance. Though it may not seem obvious, managing real estate assets involves a lot of moving parts and each component requires comprehensive services. Property management starts with finding the tenant, checking their ability to pay and maintain the integrity of the property, while simultaneously dealing with the concerned authorities. These are the steps that a full-fledged investor would have to take, had they invested in the property and rented it themselves. In many cases, however, owners (especially foreign investors) prefer to leave property management to a property manager. Property managers and property management lawyers have become an essential part of the business, and choosing the right one is key.
Role of a Property Manager
A property manager acts as a “substitute” for the actual owner, and they are responsible for managing the property and dealing with issues that require attention. A property manager coordinates and cooperates with the owner, keeping them in the loop throughout. The service of a property manager starts off by finding the right tenants to rent the property. The manager will then assess a potential tenant’s ability to pay through routine checks. Securing responsible and loyal tenants is crucial to helping reduce costs over time. A loyal and responsible tenant lowers the likelihood of damage to the property, and this can go a long way to avoiding undesirable economic loss. This service provided by the property manager lawyer relieves owners of the otherwise added burden of finding the right tenants.
Managing a Residential Property and a Commercial Property – Is there any difference?
Though there are some overlaps, speaking, managing a residential property is different from managing a commercial property. The main difference is in the status of the tenants. In the case of commercial properties, tenants are owners of businesses like shops, hair salons, studios, offices and the like. Given that business set-ups such as these are subjected to numerous monthly overhead costs, it is common for business owners to delay their rental payments or, at times, to even avoid payments altogether. Dealing with business owners who are renters make for a much more complex task. Fortunately, a commercial property management lawyer is equipped with these issues. A residential property management lawyer, in contrast, is only concerned with determining the renter’s payment abilities by checking their income and monthly expenditure. This makes it simpler in comparison to the services of a commercial property management lawyer.
Choosing the right Property Management Lawyer and why it is important.
While a property management lawyer is a necessary component in any property investment – residential or commercial – choosing the right lawyer is equally important. In Israel, there is no limit to the choice of companies offering property management services. Initially, this may seem attractive, given the wide range of services as well as competitive prices. However, a further inspection into it shows that an abundance of options does necessarily mean better services. It is incredibly important to do a thorough check of how reliable the services are, as well as whether the lawyers are trustworthy. Bear in mind as well, that appointing lawyers whom you know personally may not always be ideal since property management involves monetary aspects and it is easy for things to turn awkward. Note that lawyers are obligated by the laws and ethics of the Bar Association to be loyal to their clients. They are, for instance, required to let you know if something illegal is happening during the process of managing your property, and to inform you of any “red flags” that you need to watch out for. Also, lawyers – unlike ordinary individuals – have access to legal tools to check the quality of tenants, which can be highly beneficial for investors in the long-run. Simply put, the right property management lawyer will help you and your investments reach their potential.
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*The above is only general information and should not be considered a substitute for advice or a recommendation to perform a specific action