The idea is tempting: own a piece of the dynamic Israeli property market while living thousands of miles away. While many people do this successfully, it is not a passive investment. Managing a property from another time zone requires a robust system and a team on the ground you can trust implicitly.
The single most critical decision you will make is hiring a property management company (chevrת niהul nechasim). This is not optional; it is essential. A good management company will handle everything: finding and vetting tenants, collecting rent, dealing with emergency repairs (like a burst water heater on a Saturday night), and navigating the local bureaucracy. Their fee, typically around one month’s rent per year or a percentage of monthly rent, is the best money you will spend.
You also need a financial system. This means having an Israeli bank account from which bills and taxes can be paid automatically. Your property manager can help facilitate this. You must also be prepared for the unexpected. A major appliance could fail, or a tenant could leave unexpectedly. Having a contingency fund set aside in your Israeli account is crucial for handling these issues without stressful international money transfers. With the right management and financial setup, it is entirely possible, but it requires diligent planning from the start.
Too Long; Didn’t Read
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Managing a property from abroad is not a passive investment; it requires a hands-on approach to system building.
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Hiring a professional property management company is non-negotiable for handling tenants, repairs, and daily operations.
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You must set up an Israeli bank account and a contingency fund to handle expenses and emergencies efficiently from a distance.
