The Standard Israeli Rental Contract
In Israel, renting is called שכירות (Schirut) and the contract is a חוזה (Chozeh) (literally "contract"). The standard rental agreement is for exactly 12 months. This is not just convention — it reflects Israeli practice where landlords expect annual renewals and tenants budget in yearly cycles.
The contract is almost always in Hebrew, even if the landlord speaks English. Before signing anything, have it translated or reviewed by someone who reads Hebrew fluently. Real estate agents (metatvchim) can assist, but they typically represent the landlord's interests first. For a significant commitment like a rental, paying a lawyer 300–500 NIS to review the contract is worthwhile.
Deposit Requirements
Israeli landlords almost universally require a security deposit — called ערבון (Erbon) (guarantee or collateral). The most common deposit structure is:
- 3 months' rent as a security deposit (the legal maximum is 3 months)
- Often paid via post-dated checks — you hand over 3 checks at the start of the tenancy, each dated several months forward
- The landlord may cash these only if you default on rent or cause damage beyond normal wear and tear
The deposit must be returned at the end of the tenancy minus any legitimate deductions. Keep a written record of the property's condition when you move in — photograph every room, every scratch, every stain. Without this documentation, disputes over deposit returns are hard to win.
Bank Guarantees (Arevut Bankait)
Some landlords, particularly for higher-value properties, ask for a bank guarantee (arevut bankait) instead of or in addition to a cash deposit. A bank guarantee is a document from your bank pledging to pay the landlord if you default. Banks charge a fee to issue these — typically 0.5–1% of the guaranteed amount per year.
As a new oleh without an established local credit history, landlords may request a bank guarantee even for ordinary apartments. This is not a red flag — it reflects Israel's standard practice for tenants whose financial standing cannot be easily verified.
What Is Typically Negotiable
Israeli landlords often present contracts as non-negotiable, but several terms commonly are:
- Rent price: In a softer market or for longer vacancy periods, landlords may reduce the asking price by 2–5%
- Annual rent increase: Contracts often include an automatic annual increase linked to the CPI (madad). You can try to cap this at a flat percentage or remove it entirely for a 1-year contract
- Permitted works: If you want to repaint walls or install shelves, get explicit written permission in the contract
- Pet policy: Must be explicitly agreed in writing if the landlord is willing
- Break clause: Some landlords agree to a break clause after 6 months with 1–2 months' notice. This is rare but worth asking for, especially as a new arrival who does not yet know which city or neighborhood suits them
Protecting Yourself as a New Oleh
A few practical protections specific to your situation as a new immigrant:
- Verify the landlord owns the property — ask for a Tabu extract (niskha) confirming ownership before signing. A legitimate landlord will have no objection
- Confirm who pays arnona — in Israel, tenants typically pay arnona (municipal property tax), but this should be explicit in the contract. As an oleh you are entitled to a significant arnona discount (see the Arnona Discount article)
- List all included appliances — Israeli landlords often leave furnished apartments, but the condition of furniture and appliances should be listed in an annex to the contract
- Understand the notice period — standard contracts require 60–90 days' written notice before the end of the lease if either party does not wish to renew
Finding a Rental as a New Oleh
The primary rental listing site in Israel is Yad2 (yad2.co.il). Facebook groups for English-speaking olim in your target city are also active marketplaces. Nefesh B'Nefesh and local Jewish Agency offices maintain lists of oleh-friendly landlords.
Many new olim find their first apartment through their aliyah community networks. For your first rental, prioritize being close to your Ulpan or workplace over finding the perfect apartment — you can always move after year one once you know the landscape.