{"id":2833,"date":"2025-03-16T11:39:00","date_gmt":"2025-03-16T11:39:00","guid":{"rendered":"https:\/\/benyacov.com\/?p=2833"},"modified":"2025-05-29T11:46:57","modified_gmt":"2025-05-29T11:46:57","slug":"rental-agreement-guide-idan","status":"publish","type":"post","link":"https:\/\/benyacov.com\/en\/rental-agreement-guide-idan\/","title":{"rendered":"Rental Agreement Guide: Who Pays the Broker \u2013 And What Happens If You Pay Over 20,000 Shekels a Month?"},"content":{"rendered":"\n<p dir=\"ltr\"><strong>By Yael Dral | March 16, 2025 | TheMarker<\/strong><\/p>\n\n\n\n<p dir=\"ltr\">As housing prices in Israel continue to rise steadily and it becomes harder to buy property, more and more people are turning to rentals. According to Israel&#8217;s Central Bureau of Statistics, from 2013 to 2023, the number of apartments offered for rent increased by an average of 3.4% per year \u2014 far outpacing the 1.9% growth rate of overall housing stock.<\/p>\n\n\n\n<p dir=\"ltr\">Along with the growing demand, average rent prices have consistently increased. But for many renters, the biggest challenge isn&#8217;t just the rising cost \u2014 it&#8217;s the relationship with the landlord. Unlike many countries that offer long-term, regulated rentals, most apartments in Israel are privately owned, leaving tenants vulnerable and unsure of their rights.<\/p>\n\n\n\n<p dir=\"ltr\">To help renters better understand what they\u2019re getting into, we spoke with <strong>Adv. Idan Ben-Yacov<\/strong>, a partner at Ben-Yacov Law Firm, which specializes in real estate, family wealth, and cybersecurity.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udd10 What Guarantees and Securities Are Common in Rental Deals?<\/h3>\n\n\n\n<p dir=\"ltr\">Under Israel\u2019s <strong>Rental and Lending Law (1971)<\/strong> \u2014 which, despite being over 50 years old, has been frequently updated \u2014 landlords can require financial or third-party guarantees, such as a <strong>bank guarantee<\/strong>, <strong>cash deposit<\/strong>, or <strong>promissory note<\/strong>.<\/p>\n\n\n\n<p dir=\"ltr\">These are meant to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensure the tenant pays rent and bills.<\/li>\n\n\n\n<li>Protect the condition of the apartment.<\/li>\n<\/ul>\n\n\n\n<p dir=\"ltr\">Landlords of higher-value properties usually demand stricter guarantees, while close personal relationships between tenant and landlord might reduce those demands. It&#8217;s also common to provide <strong>post-dated checks<\/strong> for utilities and building fees, or have a parent cosign as guarantor.<\/p>\n\n\n\n<p dir=\"ltr\"><strong>But there\u2019s a legal cap<\/strong> on financial guarantees:<br>The total amount can&#8217;t exceed <strong>the lower of either<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rent for <strong>a third of the full rental term<\/strong>, or<\/li>\n\n\n\n<li>Rent for <strong>three months<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p dir=\"ltr\">This rule only applies if <strong>monthly rent is up to \u20aa20,000<\/strong>. Above that, the law assumes both sides can afford private legal protection.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">\ud83d\udeaa What Happens If Someone Wants to Leave Before the Contract Ends?<\/h3>\n\n\n\n<p dir=\"ltr\">It\u2019s smart to prepare for early exits <strong>before signing<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Include clauses about <strong>replacement tenants<\/strong>,<\/li>\n\n\n\n<li>The landlord\u2019s <strong>right to refuse<\/strong>,<\/li>\n\n\n\n<li>And rules around property use (e.g. <strong>pets<\/strong>, <strong>smoking<\/strong>).<\/li>\n<\/ul>\n\n\n\n<p dir=\"ltr\">There\u2019s no legal minimum notice period for ending a lease, but one to three months&#8217; notice is common.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udebd The Pipes Are Clogged \u2014 Who Pays?<\/h3>\n\n\n\n<p dir=\"ltr\">&#8220;Pipes are a classic issue, especially in older buildings,&#8221; says Adv. Ben-Yacov.<br>The key legal question is: <strong>Was the tenant&#8217;s use reasonable?<\/strong><br>If not (say, the clog was caused by a tenant\u2019s misuse), the landlord <strong>isn\u2019t required<\/strong> to cover repair costs \u2014 even if the infrastructure is technically the landlord\u2019s responsibility.<\/p>\n\n\n\n<p dir=\"ltr\">Again, the relationship matters. In problematic or older apartments, it\u2019s wise to <strong>document the property\u2019s condition<\/strong> in the contract to avoid future disputes.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">\ud83d\udcb8 Who Pays the Real Estate Agent?<\/h3>\n\n\n\n<p dir=\"ltr\">Commission should be agreed upon <strong>before moving in<\/strong>, and in writing.<\/p>\n\n\n\n<p dir=\"ltr\"><strong>General rule:<\/strong><br>Whoever <strong>hired<\/strong> the broker pays them.<\/p>\n\n\n\n<p dir=\"ltr\">If a landlord is contacted <strong>by a broker<\/strong>, they can agree to show the apartment but clarify that the <strong>tenant will pay the commission<\/strong>.<\/p>\n\n\n\n<p dir=\"ltr\">Can both landlord and tenant pay?<br>Yes \u2014 but <strong>only if both agree in writing<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-left\">\u26a0\ufe0f Renting in 2025? Beware of War-Related Delays<\/h3>\n\n\n\n<p dir=\"ltr\">The ongoing war has delayed many new construction projects.<br>If you\u2019re signing a lease for an apartment <strong>still under construction<\/strong>, make sure the contract covers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Delivery delays<\/strong><\/li>\n\n\n\n<li><strong>Contractor responsibilities<\/strong><\/li>\n\n\n\n<li><strong>Compensation or cancellation options<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p dir=\"ltr\"><strong>Disclaimer:<\/strong> This translation is a simplified version of the original Hebrew article. For legal accuracy or detailed interpretation, consult a Hebrew-speaking attorney or refer to the original publication on <em>TheMarker<\/em>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Yael Dral | March 16, 2025 | TheMarker As housing prices in Israel continue to rise steadily and it becomes harder to buy property, more and more people are turning to rentals. According to Israel&#8217;s Central Bureau of Statistics, from 2013 to 2023, the number of apartments offered for rent increased by an average [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":2835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,3],"tags":[361,88,362,360,363,364,359,358],"class_list":["post-2833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-news","tag-agreement","tag-ben-yacov","tag-contracts","tag-housing","tag-housing-prices","tag-idan-ben-yacov","tag-rent","tag-rental-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rental Agreement Guide: Who Pays the Broker \u2013 And What Happens If You Pay Over 20,000 Shekels a Month? - Ben-Yacov Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/benyacov.com\/en\/rental-agreement-guide-idan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rental Agreement Guide: Who Pays the Broker \u2013 And What Happens If You Pay Over 20,000 Shekels a Month? - Ben-Yacov Law Firm\" \/>\n<meta property=\"og:description\" content=\"By Yael Dral | March 16, 2025 | TheMarker As housing prices in Israel continue to rise steadily and it becomes harder to buy property, more and more people are turning to rentals. 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