Sweets are my weakness. When I'm in a foreign city, there is no way I won't go into some patisserie or fancy café to taste the local cakes. With Shlomi (a pseudonym) I used to meet at a neighborhood café in his city of residence on every visit. Each time I sampled a different cake from the display case, and they were all impressive in their beauty.
Shlomi manages, for several of the office's clients, the apartments they bought. Sometimes I helped him resolve some dispute with a client, and mostly we simply enjoyed catching up and passing clients to one another.
Shlomi knows the city inside out. He is well versed in the secrets of local and national politics. But what I like most about him is his integrity and honesty.
At our last meeting, shortly before the war, we departed from our custom and went out to a restaurant together with one of our shared clients (our office had accompanied the purchase of the apartment managed by Shlomi). When we left the restaurant on the way back to the hotel, the client informed me that he wanted to find another management company. I tried to understand the motive, but really could not get to the bottom of his thinking. From the hotel room I called Shlomi to try to understand whether he understood what had happened, but he had no idea either.
Let's run the film a year forward…
The client arrives at a meeting and tells me that he had an offer through a friend to manage the apartment at a cost of about 50% of Shlomi's cost. He jumped at the opportunity to earn a bit more from the apartment, and he regrets it.
The management fees were indeed low, but it turns out that every few days a payment demand/offset notice arrived for another fault discovered in the apartment, at prices that seemed to him higher than he knew from working with Shlomi. The rent was not transferred to the bank account on a fixed date, as Shlomi used to take care of. The apartment, rented on a daily basis, began to receive less and less flattering reviews. Until a week ago he discovered that the company was not providing him with true data, and on some of the nights for which he was told the apartment stood empty it turns out there were tourists in it, and apparently the company pocketed the proceeds. He fired them immediately.
Choosing a property management company abroad is an important decision for every investor. A good management company can ensure that your property is managed efficiently and profitably, while keeping it in good condition.
- Track record - it is recommended to choose a long-established property management company, one that has been in the market for years and manages a large number of properties successfully. Experience and stability are very important.
- Make comprehensive inquiries - before signing a contract with a property management company abroad, it is important to do comprehensive fieldwork. Ask for recommendations from existing clients or run an online search for reviews and learn from them about the service and the way of day-to-day management.
- License - every management company has a license suited to its field of activity according to local requirements. It is important to ask for licenses to make sure the company operates lawfully.
- Contract - pay attention to the contract clauses, read it carefully and check whether it meets your needs. What is included in the management services and what you will pay extra for.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית