Legal tips for tenants in Israel

A rental contract that is good for tenants is one that leaves them with peace of mind and as much certainty as possible regarding the length of the rental. Many tenants feel that they cannot significantly affect the contents of their lease. They are afraid that trying to negotiate will cause the owner to rent the property to someone else. Nevertheless, it is very important to understand what you are signing and how to make the lease benefit the tenants. In this article, an attorney from our office who specializes in contracts and real estate law will explain how to draft a lease for tenants in Israel

Our law offices in Jerusalem and Tel Aviv, specialize in contract and real estate law. The office provides a variety of legal services to tenants and landlords, both private and commercial. Services offered by our office include: legal counselling regarding rental contracts, writing apartment leases for residential use, representation in legal disputes related to rentals, etc.

Renting an apartment? Commitments undertaken when signing a lease for tenants in Israel

If you are seeking a residential apartment to rent, you would surely like to find a pleasant apartment with honest landlords who will enable you to enjoy the rental period and maintain your peace of mind. However, anyone who has been exposed to the Israeli housing market knows that this is not easy to find. The rental market in Israel is characterized by significant power imbalances in favor of landlords and apartment owners, given the high demand and low supply of apartments for rent.

Most tenants feel that they are at a disadvantage, and that if they try to bargain on the terms of the lease, the landlords are likely to turn to other potential tenants. Nevertheless, this does not mean that you must accept the conditions of the lease verbatim. Just the opposite – you should not take a rental contract lightly just because it is “standard” or “common”. The legal obligations it contains may have significant consequences down the road. Therefore, it is entirely legitimate to ask to study the lease in depth before signing it. Below we will explain the main issues that you should pay attention to, and offer some tips regarding recommended sections that will benefit tenants.

Before signing the lease – make sure you know who owns the apartment

Before we discuss the lease itself in depth, there are some basic issues that must be clarified from the very beginning. First of all, you must always find out whether the owner of the apartment is in fact the person with whom you are signing the lease. It may sound trivial, but our experience shows that there can be cases of fraud regarding apartment rentals. It is easy enough to steer clear of such cases by obtaining the registration in Tabu, which shows the names of the property owners.

If you are uncomfortable asking for the Tabu registration from the landlords, you can obtain it independently online, on the Land Registry website. On the site, you must fill in the block and lot numbers (which generally appear on the rental contract) in order to view the registration, subject to a minimal fee (as of 2021, the price is 10 NIS).

Contents of the apartment

An additional issue is how well the apartment specifications match the actual situation in the apartment. It is important to make sure that the lease stipulates precise figures for the number of rooms, infrastructure connections (electricity, water), etc. In addition, the apartment often contains furniture and electrical appliances which are owned by the landlords. Here too, you must make sure that the items match what is written in the lease, and that they are in good working order. You would not want to discover problems with the refrigerator or oven after having committed yourself to pay for any damage caused to them.

Fulfilling the contract

Many times conflicts arise over the payment obligations in the rental contract. Landlords tend to insert sanctions for late rental payments. These sanctions may be an obligation to pay a fine, calling on the guarantors for payment, or even cancelling the lease. Such clauses in the lease should serve as a “red light” for tenants.

A late payment can stem from a range of technical reasons beyond your control. A bank transfer that was delayed, or a check that bounced due to a bank clerk’s error, is likely to be considered as violating the terms of the lease, leading to sanctions. The solution is to demand that such clauses be changed to read that the landlord is obligated to send a warning in case of a delayed payment.

Another thorny issue regarding contract fulfillment is connected to the landlord’s right to visit the apartment. Landlords of course want to reserve the right to come to the apartment at any time. This is not convenient for the tenants, however, and it violates their privacy. Therefore, it is preferable for the lease to include a clause that landlord visits are subject to advance notice and coordination ahead of time, to the extent possible.

Exit clause

Tenants may find themselves forced to move out of the apartment before the end of the period stated in the lease. This phenomenon is even more common now during the period of the Corona virus. Many people lose their jobs, or must move to another location for other reasons. As much as possible, it is important to avoid the error of leaving the issue of breaking the lease undefined.

It is recommended that conditions under which the tenants can break the lease if needed are explicitly written into the contract. For example, a clause could allow the tenant to find a replacement if he or she must move out of the apartment. Another clause could limit the landlord’s right to oppose the choice of replacement tenant without good reason.

Option to extend the lease

It is always better to define in advance the amount of rent and its conditions in the case that the lease is extended. But given the dynamism of the rental market, landlords tend to wait until the last minute to see what their opportunities look like. It is important to know that the Rental Law defines time periods for giving notice of actualizing the option to extend the lease, both for landlords (at least 90 days’ notice) and tenants (at least 60 days’ notice). In an additional article on our site, we have discussed this in detail, along with other important instructions in the Fair Rental Law. If the landlord refuses to insert a clause giving the option to extend the lease, it is possible to agree on a predetermined period before the end of the lease, at which time the issue will be discussed.

Contact an attorney specializing in contract and real estate law

In this article we have discussed central issues that require tenants’ attention in any rental contract. However, there are many other issues that may arise, so it is advisable to examine a rental contract carefully before signing it. If you have more questions or require assistance with a rental contract, you can contact us and an attorney from our office will be happy to be at your service. Our law offices specialize in contract and real estate law, and provide their clients with comprehensive, professional legal solutions for tenants and landlords in any issue regarding rental contracts.