For anyone interested in renting a place to live in Israel, it is important to understand legal rights. Unfortunately, too many people sign a legally binding contract without first becoming educated, which leads to an array of problems. The following information outlines some of the key factors associated with renter’s rights while living in Israel.

• The rental agreement needs to be captured in a contract. This document would contain information and wishes from the property owner, as well as the renter, with the exception of legal provisions. Typically, the renter’s contract is standard, which could be downloaded from the internet but of course, the form could be modified as necessary. One important note specific to the rental contract is that if it was executed by a corporation and the representative from that corporation refuses to make amendments, this might be an illegal act.

• The most important aspect of any contract, which includes one used for renting a place to live in Israel, is that every detail needs to be written down. Although sometimes a verbal contract works, it would be impossible to prove something said. For this reason, disagreements involving a verbal agreement must often be resolved in a court of law.

• Remember, both the property owner and renter need to put everything agreed on in the contract. Additionally, if the contract has not been typed up, both parties would be required to initial and sign next to each modification, as validation.

• Renters have the right and responsibility to verify that the property owner is who he or she says, which could be verified with current identification. Now, if the individual does not own the property being rented but has a Power of Attorney and is acting on behalf of the owner, the renter could go online and search using “nesah tabu”, which is an official government approval and reliable means of verifying ownership.

People interested in renting in Israel should also be informed of a few key issues when it comes to legal rights as a renter in Israel. For one thing, most leases or contracts are setup for one year but if both parties agree, this period could be shortened or lengthened. The benefit of a contract is that once it expires, the renter would have the opportunity to renew and stay longer (if the place were still available), or move. However, if the renter decided to continue renting past the initial contract duration, the property owner would have the legal right to raise the rent, although some do not.

When preparing the contract, one option that could benefit the renter would be an “option clause”. In this case, the renter would have the option of extending the lease for the same period as the first contract or for a different timeframe, as agreed. Additionally, this clause would state the terms of the contract, whether remaining the same, or changing. In most cases, the property owner would increase the amount of rent but usually this would only be a small percentage. Typically, both the property owner and renter would agree on this ahead of time.

However, if the property owner were interested in adding an “option clause” whereby both parties would be involved in making decisions, the renter should be wary. Although the clause would state decisions are made by each party, the truth is that the property owner would have more power and thereby, the final say whether the rental contract would be renewed or not. For this reason, experts strongly recommend that a renter avoid any contract with an option clause requiring both parties to make decisions.

The renter should also request an early termination clause. Life changes unexpectedly so having a clause that would allow the renter to break the lease early under certain circumstances would be beneficial. Most standard clauses allow the property owner and the renter to terminate early but only with a two to three-month notice. If an early termination clause were not added, the renter would still be bound by law to continue paying rent throughout the duration of the contract even if no longer living on the property. One solution would be to have the option of subletting the property listed in the contract.

Until about a year ago, the price of rental property in Israel was quoted in United States dollars but we are now seeing the NIS currency being used more often. For the rental contract, either currency could be used but if the renter were unfamiliar with NIS, it would be important to complete a currency conversion to make sure the rent was listed correctly. Usually, if United States dollars were used, the property owner would set a minimum exchange rate. However, it would be wise for the renter to insist on a maximum exchange rate being set as well, although this might be a challenge.

As a part of the rental contract, the calculation method used for determining the exchange rate would need to be outlined, as well as when calculated, which is typically done on a daily basis. Now, if no exchange rate was established and the renter paid monies in advance, it would be imperative that the contract state at the end of the contract, both the property owner and the renter would calculate the difference. At that time, any money owed would be paid to the appropriate party.

Whenever rent in Israel is quoted in NIS, no special information or instructions would be required regarding calculation and payment. In this case, rent would simply be paid according to the terms outlined in the legal contract. The due date for rent should also be listed in the contract, whether paid on a monthly, quarterly, bi-annual, or annual basis. Even the day of the week on which rent would be due should be listed. Usually, a property owner would require rent to be paid on the first or last day of the month but if needed, special arrangements could be made. For rent increases, unless the contract has a special clause, the property owner would not be allowed to raise the rent until the contract expires.

It is also important for renters to understand rights pertaining to making changes to the property. Traditionally, a rental contract would prohibit any changes without the renter first receiving written permission from the property owner. In addition, the condition in which the property was turned over to the renter is the same condition it must be returned. Most often, renters can hang artwork as long as nail holes are filled and paint touched up when ready to move.

In most cases, the property owner would have the place freshly painted prior to renting but if permission were granted, the renter would likely have the opportunity to paint the walls but only if they were painted the original color at the end of the contract. As far as repairs, the property owner would have the responsibility to fix anything that breaks due to normal wear and tear, a term that would need to be clarified in the rental contract.

On the other hand, if something were broken by the renter or someone visiting the renter as the result of negligence or willful act, the financial responsibility would belong to the renter. Even so, before any repairs were made, the renter should address the situation with the property owner regarding making the repairs and materials to use. Often, another clause would be added to the rental contract stating that if the property owner failed to make repairs in a timely manner, which would be stipulated in the document, the renter would have the right to fix the problem at which time expenses would be reimbursed.

Any rental contract should also include a clause whereby the renter could deduct monies paid for repairs from a future rent payment. It is important to know that unless the rental contract states this specifically, the property owner would be breaking the law by reducing the amount of rent for expenses associated with repairs. Additionally, the renter should have an inspection performed on the property so any defects, damages, or potential problems could be identified and listed in the contract. With this, the renter would be protected from blame for damage done while living in the property.

The infrastructure of the property would also be the full responsibility of the property owner, which would include electrical, plumbing, walls, floors, ceiling, and so on. For the renter, utility bills, taxes on the property known as arnona, standard maintenance expenses, and applicable homeowner’s association fees called va’ad bayit, as well as the rent would be the responsibility of the renter. One note – if the property were being rented to a new immigrant or olim, this individual could claim a discount or ask for exemption from the municipal property taxes but only for the first year after coming into the country.

Sadly, immigrants have been misled by dishonest property owners into paying bills that have nothing to do with renting the property. For instance, there have been cases of a property owner or landlord and renter having an apartment in the same building. However, utilities for both units were being run off the renter’s meter, which means the immigrant was paying utility bills for two households. Because of this, renters in Israel have the legal right to ask to see current utility bills for electricity, gas, water, and so on.

Regarding furniture or furnishings within the property, the rental contract should clearly state what items would be provided. For instance, when renting an apartment in Israel, some do not have refrigerators. However, if the renter were to view a space with a refrigerator but it was not listed in the rental contract that a refrigerator would be provided, more than likely it would be gone on the day of move in.

It is common for a rental contract to include a clause whereby the renter would wave rights under the Renter’s Protection Law. While it would seem more important for this clause to be excluded, the truth is there is not much merit to this particular clause. Therefore, if a renter were to find this clause in a rental contract for a place in Israel, there would not be much reason for concern. The reason is that whether the clause is or is not in the contract, the renter would still be protected under this Israel law.