Rental Contracts (Lease) Overview - Part II
Protected Tenant Law Clause
The first paragraph you will certainly see in a contract is “Protected Tenant Law Clause” referring to an old law whereby tenants, under certain circumstances, received special rights in that they could (with a high probability) not be made to leave the apartment. This is a built in clause in every contract in Israel and it will not affect your rights as a tenant.
The Leasing Period
New Immigrants should be especially concerned about the leasing period. Make sure you will be actually living there for the period agreed in the contract. Otherwise, you will certainly have to pay a fine, or even worse, be bound by the contract for the entire period agreed (which depends on you and your landlord’s agreement).
If you are not sure how long you will be renting the place, make sure that the lease includes an option clause that gives you the choice to extend the lease for another term or part of a term.
Changing and Maintenance of the Property
Usually there is a clause in the lease prohibiting the tenant from making changes without the landlord’s consent, but changes are not repairs. It is the landlord’s responsibility to repair anything that breaks down in the apartment due to normal wear and tear. It is the tenant’s responsibility to repair anything that the tenant (or any visitors) break by a willful act or by negligence.
Insurance
Insurance should be included in the agreement but this depends on the negotiations.
Who pays for the insurance is also to be negotiated but generally it is the tenant’s responsibility. Please note that when taking a mortgage in Israel, automatically an insurance policy is issued to the lender (in your case the landlord) therefore the building itself is covered but it does not mean you are covered. I will explain.
If the policy is not in your name as a renter, the insurance is entitled to pay the landlord’s damage and thereafter sue you for the damages. This can be avoided by changing the policy holder’s name. The policy holder (owner) must not only be in the landlord’s name but yours as well! This will not cost more – never. The cost of the insurance varies but the policy for the walls/building is more or less the same.
Terminating or Subletting the Contract
It would be prudent to add an appropriate clause in which you can terminate the contract earlier with some advanced notice. Sometimes you will have to agree that the landlord has the same right as you in this subject and that means the landlord can terminate the contract before the stipulated end of lease date.
It is recommended you have the option to sublet your apartment. This needs to be stipulated in the contract as well. If this clause is not included and well formulated; you will find yourself depending on the landlord’s mercy should you need to vacate prior to lease termination.
Lawyer’s fees
Who must pay the lawyer`s fees? In general, lawyer`s fees are split between both sides. Each one pays his/her part and the amount can reach up to a month`s rent. It may be the case that the lawyer represents both sides, but if your grasp of Hebrew is limited, please do not sign anything! This can bring about several problems in the future. First receive a full explanation in English!
We advise not to have one lawyer representing both sides because in a case of dispute the same lawyer cannot advise either of the sides due to the clash of interest.
We can help you if you send us the contract by email. We will go over the contract, explain it to you and make necessary changes. This service is free of charge to new olim.
Advice
Remember! Never ever breach a contract without consulting a lawyer. Breaching a contract could have devastating negative financial consequences for you.
Sincerely,
Tzvi Szajnbrum, Attorney at Law