What Should be Included in my Lease in Israel?

Renting in Israel comes with unique challenges, especially if you’re unfamiliar with local norms. While not legally mandatory, a written rental agreement (lease) is highly recommended as it protects both the landlord and tenant by outlining all rental terms and responsibilities. Leases are typically in Hebrew but can be drafted in English (or any other language) if both parties agree. If you are renting from abroad or unfamiliar with Israeli rental contracts, consulting a real estate attorney can help ensure the lease protects your rights and complies with current laws and regulations.

Here are the key elements that should be included in your rental agreement to protect your rights and prevent disputes:

1. Property Description and Ownership Rights

• The rental agreement should clearly outline details about the property, such as its address, legal registration, size, and any included features or amenities. Tenants should request documentation from the landlord to confirm their legal right to rent out the property.

2. Lease Term and Renewal

• Ensure the lease specifies the exact start and end date.
• If you want the option to extend, negotiate renewal terms in advance, including rental increases and notice periods.

3. Rent and Payment Terms

• Clearly define the rent amount and ensure the lease specifies any planned increases during the term or upon renewal. If a fixed rent increase is not outlined, the landlord can raise the rent to any amount upon renewal, as rent controls are not enforced in Israel.
• Rent is typically paid monthly in Israel, but the lease should explicitly state the payment frequency, due date, and accepted payment methods, such as post-dated checks, bank transfers, or another form.
• Confirm the currency in which rent is paid and whether it is linked to exchange rate fluctuations or inflation.

4. Additional Costs

• Determine who is responsible for municipal taxes (Arnona), building fees (Va’ad Bayit), maintenance fees, and utilities.
• If the building has management fees, clarify what they cover and whether they are subject to change.

5. Security Deposit and Guarantees

• Understand the type and amount of security required, such as a cash deposit, bank guarantee, promissory note, or post-dated checks. By law, a security deposit that restricts access to funds cannot exceed three months’ rent, though standard deposits are usually one to two months’ rent.
• The lease should specify under what circumstances the landlord can use the security deposit, how long they must return it after move-out, and how the refund will be processed (e.g., bank transfer, check). The landlord may hold the deposit for up to 60 days after the lease ends to cover outstanding bills or damages.

6. Repairs and Maintenance

• Define responsibilities for repairs—who covers minor issues versus major structural problems.
• Agree on response times for urgent repairs.
• Confirm who handles warranty claims if the property is new and still under the contractor’s warranty.

7. Condition of the Apartment

• Get an itemized list of included appliances, furniture, and fixtures.
• Confirm whether the apartment will be freshly painted before move-in and whether you must repaint before moving out.
• Discuss whether you can make modifications, such as hanging pictures, installing shelves, or adding security bars.

8. Use of the Apartment

• If you plan to have a pet, confirm that the lease allows it.
• If you need to use the space for work or other non-residential purposes, ensure the lease permits it.

9. Breach of Contract and Penalties

• Clarify penalties for late rent payments and whether there is a grace period.
• Ensure the lease specifies what happens if you must leave early and whether you can find a replacement tenant.
• Agree on compensation if you cannot move in on time due to delays from the landlord.