Comprehensive Guide to Leasing a Property in

Israel

Leasing property in Israel has unique characteristics and legal requirements that differ from other countries. This comprehensive guide covers everything you need to know whether you're a tenant or landlord in the Israeli rental market.

Understanding Israel's Rental Market (2025)

Current Market Overview

The average rent in Israel stands at NIS 4,853 per month (Q1 2025), representing a 4.9% increase year-over-year. The market varies significantly by location:

**Tel Aviv **(Most Expensive):

ï           3-room apartment: NIS 6,963/month average

ï           4-room apartment: NIS 8,632/month average

**Jerusalem **(Mid-Range):

ï           3-room apartment: NIS 4,641/month average

ï           4-room apartment: NIS 5,755/month average

**Haifa & Be'er Sheva **(More Affordable):

ï           Haifa 3-room: NIS 3,019/month; Be'er Sheva 3-room: NIS 2,716/month

Key Legal Framework

Israel's rental market is governed by two primary laws:

**1.        The Rental and Borrowing Law (1971) **- Traditional tenant protections

**2.        The Fair Rental Law (2017) **- Modern regulations addressing market imbalances

For Tenants: Renting in Israel

1.  Preparing Your Search

Budget Considerations:

ï           Monthly rent (typically one year contract)

ï           Security deposit: maximum of three months' rent or one-third of total lease rent, whichever is lower

ï           Real estate agent fee: typically one month's rent plus VAT (17%)

ï           Arnona (municipal property tax): NIS 400-2,000/month depending on size and location

ï           Va'ad Bayit (building committee fees): NIS 300-350/month (can be higher in luxury buildings)

ï           Utilities: approximately NIS 600-1,000/month (electricity, water, gas, internet) **Understanding "Unfurnished" in Israel: **In Israel, "unfurnished" apartments come with no appliances, closets, or even a stove or refrigerator, unlike many Western countries. Consider "partly-furnished" options if you don't own appliances.

2.  Finding Properties

Common Search Methods:

ï           Online platforms: Yad2, Madlan (primarily in Hebrew)

ï           Real estate agents (recommended for new immigrants and English speakers)

ï           Facebook groups for English-speaking communities

ï           Local bulletin boards

**Important Note: **Many English listings on Israeli websites may be outdated or unavailable, making a reliable agent particularly valuable.

3.  The Lease Agreement (Chozeh Sechirut)

Standard Lease Terms:

ï           Most standard lease agreements in Israel are signed for one year

ï           Contracts are typically in Hebrew (translation services cost NIS 200-500)

ï           Legal review by attorney recommended: NIS 500-2,000

Essential Contract Components:

A valid lease contract must include full names of landlord, tenant, and any guarantors, along with:

ï           Property address and full description

ï           Lease duration with specific start and end dates

ï           Monthly rent amount and payment due date

ï           Security deposit details and return conditions

ï           Payment responsibilities: tenants typically pay for electricity, water, gas, additional shared services, and property taxes

ï           Maintenance and repair responsibilities

ï           Subletting provisions

ï           Early termination conditions

4.  Understanding Your Rights Under the Fair Rental Law

**Habitability Standards: **Apartments must have functional utilities, proper ventilation, natural light, and a lockable front door

An apartment is uninhabitable if it has burst pipes, lacks sewage connection, has no electrical system, lacks ventilation or natural light, has no lockable front door or closing window, no drinkable water system, no separation between bathroom and apartment, or if the state is a safety/ health hazard.

**Lease Renewal and Termination: **For contracts with landlord's option to extend, landlords must notify tenants at least 90 days before lease expiration; for tenant's option, tenants must notify at least 60 days before expiration

**Breaking the Lease: **The right to break the lease requires a minimum of 90 days' notice by landlords and 60 days by tenants. The contract cannot allow only the landlord to break the lease; both parties must have equal rights, or only the tenant.

**Security Deposit Protection: **Landlords may not access security deposits without first giving the tenant notice of breach and 7 days to remedy the breach

5.  Guarantors (Arev)

Landlords often require substantial guarantees to secure the contract, especially for new immigrants (Olim) without local income. Guarantors typically need to provide:

ï           Proof of Israeli residency

ï           Income verification

ï           Ownership of property in Israel (in some cases)

6.  Move-In Process

Before Signing:

ï           Verify the identity of your landlord and confirm they are the property owner by contacting your local Deed Register's office

ï           If the lease is for a sublet, ensure the primary tenant has the landlord's written authorization

ï           Document apartment condition thoroughly with photos and videos

ï           Complete a detailed move-in checklist

ï           Have contract reviewed by a lawyer (especially important if in Hebrew)

At Move-In:

ï           Pay first month's rent and security deposit (held in bank account)

ï           Transfer Arnona and utilities to your name

ï           You will be held liable if you default on Arnona payments

ï           Obtain keys and access codes

ï           Purchase renter's insurance (recommended)

7.  During Tenancy

Tenant Responsibilities:

ï           Tenants are responsible for repairing damage caused by unreasonable use

ï           Pay all utilities and taxes on time

ï           You have the right to request to see utility bills if you believe your landlord overcharges

ï           Maintain the property in reasonable condition

Landlord Responsibilities:

ï           Landlords must fix or repair defects related to building structure and ensure everything is in working order

ï           Maintain communal areas

ï           Respond to maintenance requests promptly

ï           Cannot interrupt essential services (electricity, water, gas)

8.  Rent Increases

Landlords may raise rent at the end of a lease term with tenant agreement, with no legal cap on increases as long as both parties consent

However, during an active lease, landlords cannot increase rent unless the contract specifically allows for it, such as annual increases or CPI adjustments

9.  Special Considerations

**Luxury Properties: **Luxury apartments with monthly rents of NIS 20,000 or more are not subject to the Fair Rent Act, making contract terms crucial

**Protected Tenancies: **Protected tenancy agreements under the Tenant Protection Law (1972) offer more stability but come with restrictions and are less common today

**Property Sales: **An apartment owner may sell the property while you're renting, but Israel's 1971 Law of Leasing & Borrowing protects tenants to usually complete their lease term

For Landlords: Leasing Your Property

1.  Property Preparation

ï           Complete all necessary repairs and maintenance

ï           Ensure compliance with habitability standards

ï           Install functional smoke detectors and secure locks

ï           Provide utilities in working order

ï           Document property condition with photographs

2.  Setting Rental Terms

Determining Rent:

ï           Research comparable properties in your area

ï           Consider current market rates by location and size

ï           Landlords and tenants can freely agree on rental prices as long as both consent and the agreement complies with Israeli law

**Security Deposits: **The deposit must not exceed the lower of three months' rent or one-third of the total rent for the full lease period, and must be held in a bank account

3.  Creating a Compliant Lease

Required Elements:

ï           Full legal names of all parties and guarantors

ï           Complete property description and address

ï           Lease term (duration)

ï           Specify that tenants are responsible for paying utilities and transferring them to their names, with documentation of payments

ï           Maintenance responsibilities clearly delineated

ï           Lease extension and breaking terms that comply with minimum notice requirements (90 days for landlord, 60 days for tenant)

Important Clauses:

ï           Include mechanisms for continuous rental if you sell the apartment to ensure rights transfer

ï           Specify sanctions for refusing to vacate, such as agreed-upon compensation for each day of refusal, with legal counsel to ensure enforceability

ï           Subletting authorization requirements

ï           Property access terms

4.  Tenant Screening

ï           Request proof of income and employment

ï           Verify references from previous landlords

ï           Check credit history if available

ï           Confirm guarantor financial standing

ï           Provide tenants the right to verify your identity and property ownership

5.  Fair Rental Law Compliance

**Cannot Be Waived: **The Fair Rental Law applies to all residential long-term rentals regardless of contradictory contract clauses; for instance, landlords remain responsible for repairing reasonable wear and tear even if the contract assigns that to tenants

**Notice Requirements: **When including lease extension or breaking clauses, landlords must give minimum 90 days notice, tenants minimum 60 days; shorter periods have no legal validity

**2025 Updates: **Eviction rules became stricter in 2025; landlords must present legitimate legal reasons to evict even at lease end, with evictions for personal/family use requiring concrete proof

Security deposit regulations updated: maximum three months' rent held in bank account with mandatory documentation for deductions, and tenant consent required before altering lease terms

6.  Digital Modernization

Digital lease agreements are now legally valid in Israel, and mandatory mediation must occur before proceeding to court

7.  Eviction Process

**Legal Grounds: **Landlords can evict during lease term only for violations such as non-payment, property damage, or breach of contract, requiring formal legal process through Magistrate's Court

Self-help evictions like changing locks or cutting utilities are illegal, and landlords attempting illegal evictions can be subject to damages

Process:

ï           File an "unlawful detainer suit" against tenants refusing to leave after contract expiration

ï           Court authorization required

ï           Parallel process available for financial compensation

Additional Cost Considerations

Monthly Expenses (Average Estimates)

For a 4-Room Apartment:

ï           Arnona: NIS 400-500 (varies by location and size)

ï           Va'ad Bayit: NIS 300-350 (standard building with elevator)

ï           Utilities (family of four): NIS 600-700

ï           Internet/phone: NIS 150-200

One-Time Costs:

ï           Agent fee: One month's rent + 17% VAT

ï           Contract translation: NIS 200-500

ï           Legal review: NIS 500-2,000

ï           Security deposit: Up to 3 months' rent

Tips for Success

For Tenants:

ï           Learn basic Hebrew real estate terms or work with an English-speaking agent

ï           Budget for all additional costs beyond rent

ï           Document everything in writing

ï           Consider renter's insurance

ï           Join expat communities for advice and support

ï           Consider areas like Yad Eliyahu or Givatayim near Tel Aviv for more affordable alternatives

For Landlords:

ï           Ensure full compliance with Fair Rental Law

ï           Provide clear, written contracts

ï           Maintain good relationships with tenants

ï           Document all communications and agreements

ï           Seek legal counsel for complex situations

ï           Stay updated on regulatory changes

Key Cultural Differences

ï           Most properties are unfurnished (no appliances)

ï           Tenant pays nearly all utilities and taxes

ï           One-year leases are standard

ï           Guarantors are commonly required

ï           Contracts are typically in Hebrew

ï           Real estate agents represent both parties

ï           Digital lease agreements now accepted

Resources

ï           Ministry of Construction and Housing: Tenant rights and obligations

ï           Israel Tax Authority: Property tax information

ï           Central Bureau of Statistics: Market data and statistics

ï           Local municipalities: Arnona information and payments

ï           Real estate platforms: Yad2, Madlan

ï           Legal services: Contact local bar association for lawyer referrals

Conclusion

Leasing property in Israel requires understanding unique local laws, customs, and market conditions. The Fair Rental Law of 2017 has significantly improved tenant protections while establishing clear obligations for landlords. Whether you're a tenant seeking your first Israeli apartment or a landlord preparing to lease your property, thorough knowledge of your rights and responsibilities under Israeli law is essential for a successful rental experience.

The Israeli rental market remains dynamic with strong demand, particularly in major cities. With proper preparation, legal guidance, and awareness of the Fair Rental Law provisions, both tenants and landlords can navigate the system effectively and establish fair, legally compliant rental relationships.

Updated on: 02/02/2026