Should you or should you not turn your long-term rental into a short-term rental in Tel Aviv, Israel? It turns out you should and here’s why!
When a property owner has a property that they want to make a passive income through their rental management strategy they are presented with a crucial decision, which is:
What is better long-term or short-term rental in Tel Aviv, Israel?
This can be a conflicting decision for many reasons. But at this point there has never been a better moment in your life to address those reasons.
Long-Term or Short-Term Rental in Tel Aviv
The key to analysing this is the location in which your property rental is based.
If you are lucky enough to have your property in a great location in the heart of Tel Aviv, or perhaps a sea front property that very much points you in the direction of the short-term rental market.
The short-term rental market is generally much more lucrative than the long-term market. It is common for you to double, triple of even quadruple your earnings when compared to the long-term rental market.
Understanding you are in a prime location in a highly sought after area is key in your decision making here.
The long-term market may seem safer. It may give you a lot less work to do. But that is why you need to assess the risk factor when committing to the short-term rental market.
Assessing the Risk Factor
The best way for you to enter the short-term rental market, capitalise on the rewards and mitigate on the risk is to work with a property management company in Tel Aviv.
You can learn about some of the benefits of working with a property management company. Check out my article – 10 Great Advantages of Working with a Property Management Company.
A professional property management company will take 99% of the risk out of the equation for you.
Playing it Safe in the Long-Term Rental Market
There are of course advantages to committing your property to the long-term rental market. The biggest advantage is increased consistency and no seasonality.
Seasonality is a big factor in the short-term rental market. You must consider this or suffer the consequences.
If however you have a vacation rental property in Tel Aviv, seasonally is not a big issue.
Of course Israel does experience peaks and lows, but the market never really switches off completely. There is literally good earnings to be made all year round.
The COVID-19 Effect
Even COVID-19 couldn’t kill the Israeli short-term rental market. Earnings dropped as they did for many businesses across many industries. But there was still a local market for short-term rentals in Tel Aviv.
As a property management company, we switched our efforts. Going from being primarily aimed at the international market to being aimed at the domestic market.
The market is adaptable and can thrive in adverse conditions. This makes it one of the most robust industries in existence today.
If you are entering the short-term rental market for the first time and you are doing it solo, you may seriously want to reconsider. It may be better to go with the long-term rental market, even if you happy to have a property in a great city like Tel Aviv in Israel.
The investment is greater for the short-term rental market. In terms of time, energy and expertise, but the rewards are much greater.
An Individual Decision
Really it’s down to you as an individual. What you are willing to put in, who you are willing to parent with and where your property in located.
With the long-term rental market in Tel Aviv, the idea is that you put the tenant in and forget about it. Taking a consistent, but relatively small income each month.
This may suit you and if it does go for it.
If not, my advice is to seek out a property management company in Tel Aviv. They will be ready to manage your property on your behalf.
For advice on choosing a property management company don’t miss my article. 10 Things to Ask Before Signing with a Property Management Company.
The bottom line is that this should be business decision for you. Look at what you can earn and make a decision accordingly. The market is clear for both the long-tern and the short-term marketing. A professional property management company should be able to give you some indication of what you can earn.
They can do this by referencing other properties that they manage which are similar to yours.
For some of the properties we manage make sure you check out our website at Sea N’ Rent
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.