Today I’m going to show you 3 rental management strategies in Israel. You’ll be able to decide what’s right for you and your property.
What compels people to rent out their property is the term we hear a lot of on the internet, which is “passive income”.
Passive income is the idea that you can start something up and let it run itself. Bringing you in an endless stream of revenue.
Of course, this is ideal. So many people explore options for opportunities that fit into this business model. One of these opportunities is property rental. You get your tenant and the money comes in continuously.
It seems like a no-brainer. However, to make good money you generally need more than one property in the long term market and in the short term market of rentals, you need excellent property and guest management.
With that said, let’s say you’ve decided to go for it and rent out your property. You’re going to need a rental management strategy.
In the following text, we are going to look at 3 rental management strategies in Israel. These will help you decide what is the best way for you to rent out your property and make that passive income.
3 Rental Management Strategies
1. Self Management
Self-management is appealing to the novice property owner. You don’t have to give up any of your revenue. You’re in complete control and have a say over every aspect of the business that is the renting out of your property.
However, the issues are that it’s really all on you to get this right. If your goal is passive income than you being on top of everything is not what you want.
While things are running smoothly you may be able to manage things well. However, as soon as more of your time and resources are required you will begin to understand the full extent of the job that you took on in managing your property rental.
Self management may work perfectly for you, but there are many reasons why it won’t. Such as:
- Issues with guests
- Getting guests
- money management
- rental management
- property maintenance
- building repairs
- issues with nearby tenents
- legal issues
You will find soon enough that as far as rental management strategies go, that this is the equivalent of setting up a small business.
You may love it, or it could drive you crazy to the point of just wanting to sell the property and be done with it.
2. Co-Hosted Property
Some OTAs (Online Travel Agents) such as Airbnb run schemes so that you can share the responsibility of managing your property with another individual who will act as a co-host.
This may be a great idea, if you can find the right co-host to share the responsibility with. Of course there would likely be some sort of monetary compensation for the co-host for taking care of the reservation for you.
The idea is that the workload and responsibilities are shared, so there is less pressure on you to make sure you are on top of everything.
The major issue with this is that a co-host may not treat your property or guests with the level of professionalism that you want.
Because they are individuals with other responsibilities it’s hard to treat a co-host like they are your staff, which is what you really need in order for them to do the job well.
While co-hosting may be the perfect solution for you, it can be messy in terms of how things work in your online OTA dashboard and when it comes to the payouts and how payments are divided.
Of course because there are no two of you involved there is a greater opportunity for miscommunication which ultimately will lead to a poor guest experience. This has significant ramifications when it comes to your property getting more and more reservations.
3. Property Management Company
There are a lot of advantages when it comes to the strategy of partnering with a property management company, which you can read about in my other article – 10 Great Advantages of Working with a Property Management Company.
The biggest disadvantage, however, is that property management companies come at a price. However, it’s not really a disadvantage, when you consider all the advantages you are going to get. It’s more of an exchange of resources that will ultimately result in you maximizing your property’s earning potential.
But at Happy Owner, we encourage all property owners to be cautious when selecting a property management company, which is why we published this article – 10 Things to Ask Before Signing with a Property Management Company.
When managing our Sea N’ Rent Israel properties we have a full operation from A to Z which guarantees success when it comes to the guests of your property and the upkeep of your property.
Working with a property management company really does play into the idea of passive income. You basically have to hand over the keys and watch the money come into your bank account.
Working with a property management company is really for people who don’t want to spend the time it takes to manage a property like a business and yet still want all the benefits of additional revenue.
Have you got a property in Tel Aviv that you’re considering renting out as a vacation rental?
Set up a call with Happy Owner today and see if we can help you with earning the most from your property.
Scott D. Renwick is the Head of Operations at Sea N’ Rent Ltd., working with them since 2015. His skills have helped the company structure its operations to ensure stability and future growth in the property management business.