rental agreement in israel, tel aviv, jerusalem
מור ושות׳ - חברת עורכי דין

מור ושות׳ - חברת עורכי דין

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rentals in israel

Essential Tips for Apartment Owners Wishing to Rent out in Israel

Essential Tips for Apartment Owners Wishing to Rent out in Israel

Renting out an apartment is a financial transaction of paramount importance, as the owners allow perfect strangers to use their property, in which they've probably Invested large sums of money, in return for rent. Deep consideration, a thorough examination and legal accompaniment by a lawyer specializing in real estate before and during the rental process may save you, the landlord, both financial losses and distress and grief, as delineated in my previous article regarding" eviction of tenants".

Preliminary examinations of the tenants – Usually tenants are complete strangers who came in to see the apartment after seeing it advertised somewhere and the lease is signed if they made a good impression on the landlord and if they like the place well enough. Based on this early and superficial first impression, no one really has the ability to know the tenants' background or financial capabilities. It's of grave importance, therefore, to try and find out as much as possible about the tenants before the lease is signed.

In order to examine their financial capabilities, it is recommended that they and their guarantors bring paystubs from the preceding 3 months. In extreme cases where their financial solvency is in doubt, it is also recommended to ask tenants to provide a copy of the status of their checking account.

Apart from the financial examination, it is also recommended to run background checks on the tenants.

[quote style="left"] Deep consideration, a thorough examination and legal accompaniment by a lawyer specializing in real estate before and during the rental process may save you, the landlord, both financial losses and distress and grief, as delineated in my previous article regarding" eviction of tenants". [/quote]

The rental right and its purpose – the rental agreement should plainly state that the rental rate relates to the tenants personally and only to them and that they are not allowed to transfer it to a third party, Unless your advance written permission was provided. In addition, the agreement should unequivocally and explicitly state that the rental's purpose is purely residential and that the tenants guarantee to make no use of the apartment for any other purpose.

The rental fee – the agreement should set the rental fee, the duration of the rental, the payment dates, any securities and the payment spread. If the agreement is drafted in US dollars, you should protect yourself from a drop in the dollar-to-shekel rate by setting a minimum exchange rate. In addition, it is recommended that the agreement state the option of extending it and the precise terms to do so. There are good, fair tenants you can and should keep and allow them a long-term rental.

[quote style="left"] …Promissory note, bank guarantee, bank check and so on. It is recommended, even crucial; to have guarantors also sign the lease to ensure all of the tenants' obligations to you are met. It is important to verify the identity of guarantors by their IDs, to examine their solvency and to run preliminary checks on them as well. [/quote]

 

Securities and accompanying accounts – you Should take care to receive some kind of security from the tenants, such as a promissory note, bank guarantee, bank check and so on. It is recommended, even crucial; to have guarantors also sign the lease to ensure all of the tenants' obligations to you are met. It is important to verify the identity of guarantors by their IDs, to examine their solvency and to run preliminary checks on them as well. In addition, the tenants should provide blank checks, without dates or sums, for payment to the authorities. If the tenants cancel their checks, you can actualize them through the courts.

Make sure the tenants transfer any municipal, electric, gas or telephone bills to their names.

 

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