What Payments are Tenants Expected to Make for a Rental?

In Israel, rent is only one part of the tenant’s financial commitment. Landlords typically require a combination of ongoing payments and financial guarantees, and many of these are regulated under the Fair Rental Law (חוק שכירות הוגנת).

Here’s a clear breakdown of what’s standard—and what the law allows.

What Landlords Expect In Addition to Rent

1. Ongoing Monthly Costs

These are almost always paid by the tenant:

Arnona (Municipal Tax)

• Paid directly to the municipality
• Based on size, location, and property classification
• In a city like Ashkelon, this can vary significantly by neighborhood
• Olim Chadashim may receive a discount on their first year’s Arnona (with limits)

Vaad Bayit (Building Maintenance Fee)

• Covers cleaning, elevator maintenance, lighting, gardening etc.
• Can range from minimal (300 ₪) to over 500 ₪ in newer buildings

Utilities

• Electricity
• Water
• Gas (if applicable)
• Internet/cable

These are not capped by law—they are simply the tenant’s responsibility unless agreed otherwise.

2. Upfront Payments

Advance Rent

• Common to provide post-dated checks for the entire lease period
• Sometimes 1–3 months paid in advance (less common today)

3. Security / Guarantees (פיקדונות ובטחונות)

This is where the law becomes important.

Common Types of Guarantees:

• Security deposit (cash or check, which is usually deposited)
• Bank guarantee or bank check (funds are withdrawn from your account by the bank)
• Promissory note (שטר חוב)
• Personal guarantors (ערבים)

The Legal Limits

Under the Fair Rental Law, landlords cannot demand unlimited security.

Maximum Allowed:

The total value of all financial guarantees combined cannot exceed:

• 3 months’ rent, OR
• 1/3 of the total rent for the lease period

The lower amount is the legal cap.

Example:

Monthly rent = 5,000 ₪ for 12 months

• 3 months =15,000 ₪
• 1/3 of total (60,000 ₪ ÷ 3) = 20,000 ₪

Legal maximum = 15,000 ₪

What About Guarantors?

• Landlords can request guarantors (ערבים)
• BUT they cannot use guarantors to bypass the financial cap
• The law focuses on the total financial exposure, not just cash

4. What Landlords Cannot Legally Do

Landlords are not allowed to:

• Demand excessive deposits beyond the cap
• Require unreasonable or one-sided penalties
• Shift certain structural repair responsibilities to the tenant

They also must ensure the apartment is fit for living (ראוי למגורים), including:

• Proper plumbing and electricity
• No serious safety hazards

5. Repairs and Maintenance – Who Pays?

Tenant Typically Pays:

• Minor repairs (light bulbs, small fixes)
• Damage caused by misuse

Landlord Must Pay:

• Structural issues
• Plumbing failures not caused by tenant
• Major system repairs

These responsibilities cannot simply be overridden in the contract.

What’s “Normal” in Practice (Reality Check)

In cities like Ashkelon, a typical deal looks like:

• 12 post-dated rent checks
• Deposit of 2–3 months’ rent
• 1–2 guarantors
• Tenant pays all utilities + Arnona + Vaad Bayit

If a landlord asks for significantly more than this, it’s worth checking carefully.

Olim Chadashim have a difficult time getting guarantors. Many landlords will accept a deposit of three months rent instead.

Bottom Line

Tenants in Israel pay more than just rent—ongoing costs + guarantees are standard

The law strictly caps financial guarantees

Transparency and balance are key—both legally and for attracting good tenants

Sources

Below are the exact Hebrew statutory excerpts from the Israeli Lease and Borrowing Law, 1971 (חוק השכירות והשאילה) as amended by the Fair Rental Law amendment (תיקון מס’ 6 לחוק השכירות והשאילה, תשע”ז–2017).

Source: Official Israeli legislation database (Nevo consolidated law text)
https://www.nevo.co.il/law_html/law01/999_001.htm

🇮🇱 1. ערבויות (Guarantees Cap)

סעיף 25י (י״א) – ערבויות

“המשכיר רשאי לדרוש מן השוכר להעמיד לטובתו בטוחות לקיום חיוביו לפי חוזה השכירות, ובלבד שסכום הבטוחות לא יעלה על הנמוך מבין אלה:
(1) שלושה חודשי שכירות;
(2) שליש מתקופת השכירות.”

🇮🇱 2. מסירת הדירה והתאמה לשימוש (Habitability)

סעיף 6 – מסירת המושכר והתאמתו

“המשכיר ימסור את המושכר במועד המוסכם כשהוא ראוי לשימוש שלשמו הושכר.”

🇮🇱 3. חובת תיקונים (Repairs)

סעיף 7 – תיקון פגם

“נודע למשכיר על פגם במושכר או נמסרה לו הודעה עליו מאת השוכר, חייב הוא לתקנו בתוך זמן סביר.”

סעיף 9 – פגם מהותי

“היה פגם במושכר המונע שימוש סביר בו למטרת השכירות, רשאי השוכר לדרוש את תיקונו.”

🇮🇱 4. התאמה לדיור ראוי (Appendix – Standard of Habitability)

התוספת לחוק – תנאי ראויות למגורים

“מושכר לא ייחשב ראוי למגורים אם מתקיים בו אחד מאלה:
(1) אין בו מערכת אספקת מים תקינה;
(2) אין בו מערכת ניקוז או ביוב תקינה;
(3) אין בו מערכת חשמל תקינה;
(4) אין בו אוורור סביר;
(5) קיים בו סיכון בלתי סביר לבריאות או לבטיחות.”

🇮🇱 Key Legal Meaning (Direct from the statutory text)

From the combined sections above:

✔ Guarantees

• Capped by law (3 months / 1/3 lease)

✔ Habitability

• Must be “ראוי לשימוש שלשמו הושכר”

✔ Repairs

• Landlord must fix defects within reasonable time
• Tenant may demand correction of material defects

✔ Minimum housing standard

• Water, electricity, drainage, ventilation, safety are mandatory baseline requirements

IMPORTANT: I am not a lawyer and am not giving legal advice. This information is a rough guide and provided to help you research the topic and includes sources. Regulations are constantly changing and it is important to speak with your lawyer before signing a lease or for any legal issue surrounding a rental or purchase.