Rental agreement in Israel: reviewing and drafting your lease

A rental agreement in Israel is signed quickly, almost always in Hebrew, with rent checks and security checks for the utilities and charges.

Guarantors: in Israel, landlords generally require one or two guarantors with a stable income to sign the contract, or promissory notes.

Guarantees and securities: if you have no personal guarantors, it is customary to ask for a bank guarantee or a cash deposit (the equivalent of a security deposit) of up to three months' rent.

I negotiate or draft your rental agreement and I explain to you in English what you are signing, whether you are the tenant or the landlord.

What does a rental agreement in Israel contain?

• Term: most often twelve months, with a renewal option whose conditions (rent, notice period) must be in writing.
• Payment: it is common to hand over post-dated checks for the whole year at signing, or to pay by monthly bank transfer.
• Guarantees: security check ("check bitachon"), bank guarantee, promissory note ("shtar chov") and personal guarantor ("arev"). The Fair Rental Law of 2017 regulates these guarantees: their total amount may not exceed three months' rent (or one third of the rent for the whole term if that amount is lower).
• Charges: municipal tax ("arnona"), building charges ("va'ad bayit"), water, electricity and gas are generally paid by the tenant; the contract must say so.
• Repairs: the 2017 law requires the landlord to deliver a habitable apartment and to repair, within a reasonable time, defects that are not caused by the tenant.
• Early exit: without an exit or replacement clause, the tenant remains liable for the rent until the end of the lease.

For the tenant: what I check before you sign

• That the person renting to you is indeed the owner (by a Tabu extract) or holds a mandate or power of attorney from the owner.
• The guarantees requested and their proportion compared to the law.
• The clauses on rent linkage, penalties, visits to the apartment and termination.
• Who pays what: arnona, charges, insurance, repairs.
• The move-in inspection report and the return of the guarantees when you leave.
• Unfair clauses, which I point out to you and negotiate with the landlord or his lawyer.

You receive a written explanation in English of every important point of the contract, and you sign knowing what you sign.

For the landlord: a lease that protects you

Do you own an apartment in Israel that you rent out, sometimes from abroad? I draft a rental agreement in Israel that complies with the law and fits your situation: effective guarantees, a payment schedule, a contract with clearly divided responsibilities, a balanced exit clause. In case of breach of contract, I enforce all of the tenant's guarantees. If you are abroad, a notarized power of attorney allows me to sign and manage the lease on your behalf.

How it works

1. You send me the draft lease (or you describe the property to be rented).
2. I review the draft lease or I draft my own, generally within two business days.
3. I negotiate the changes with the other party, or I draft the contract.
4. You sign, understanding every clause.

Frequently asked questions

Does a lease in Hebrew that I do not understand bind me?

Yes. Signing a contract in a language you do not understand does not, as a rule, allow you to get out of it. That is exactly why it has to be reviewed before signing, not after.

Which guarantees are normal?

For a rental agreement in Israel: a security check or a bank guarantee, sometimes guarantors as well. The total amount may not exceed three months' rent.

The landlord refuses to repair, what can I do?

Send a written demand with a deadline. If he does not react, the law allows you, under certain conditions, to have the repair done and deduct the cost from the rent. A lawyer's letter is often enough to unblock the situation.

Can I leave the apartment before the end of the lease?

Only if the contract provides for an exit clause, or if you present a replacement tenant accepted by the landlord. Otherwise you must pay the rent until the end of the term. It is a clause I negotiate systematically for my tenant clients.

Are you about to sign a lease, or to rent out your property? Contact me through the form on the English-speaking lawyer page or on WhatsApp +972-54-777-2548.

See also: buying and selling an apartment.