Ellen is an attorney with 20 years
of experience specializing in various fields of the law including commercial law,
contracts, real estate, trusts and estates, labor law, and litigation.
Despite
popular belief, and although many leases are similar, there is no such thing as
a standard off-the-shelf rental agreement. Even though real-estate agents may
supply you with such an off the shelf form, I would advise against using it. Each
rental agreement should set forth the terms and conditions specific to the relationship
between the landlord and the tenant and that are relevant to the particular leased
premises.
A rental agreement should contain the name,
identity number and address of the landlord and it should clearly state that the
landlord has title to the premises. Unfortunately, there have been cases where
people have impersonated the owner and have collected rent on property they did
not own. Consequently, if you are a prospective tenant it is advisable to verify
the landlord’s ownership rights to the premises.
The
rental agreement should state the duration of the lease (usually one year). A
tenant may not legally break the agreement unless the landlord fundamentally breaches
its terms. A tenant who breaks the lease without good cause will be responsible
for the remainder of the rent for the duration of the lease.
If
the parties have agreed to an extension of the lease, otherwise known as an option,
the agreement should determine the amount of rent to be paid during the option
period and the tenant’s exclusive right to activate the option by giving
notice. An option that does not contain these provisions is not a genuine option.
The
rental agreement should contain a description of the premises, the appliances
and furniture included in the agreement. The agreement should also state the condition
of the premises. The tenant is obligated to return the premises in good condition,
or in the condition in which it was received, for that reason it is important
to note the condition of the premises, the appliances and furniture. If there
is any damage or defects in the apartment or appliances, these should be noted
in the agreement.
The agreement should stipulate
that the tenant should only be liable for damage caused by the tenant but not
for repairs resulting from reasonable wear and tear.
It
is advisable to request a security from the tenant. The landlord should keep the
security for the term of the agreement and for at least 2 months following the
term of the agreement. This ensures that all bills for utilities owed by the tenant
will be paid, including the bills which are due to arrive after the end of the
term of the agreement. A common security is in the form of a cash deposit for
the first and last 2 months of rent. This is unadvisable since it does not leave
the landlord with a security deposit at the end of the term of the agreement.
Another option is an unconditional bank guarantee for the sum of 3 months rent.
In addition, the tenant should provide the landlord with a promissory note signed
by guarantors, for any additional damage caused to the premises.
Whether
you are a landlord or a tenant, it is advisable to have your lease checked by
an attorney and not to rely on luck, otherwise you may wind up in a situation
you may regret.
A Complete
Rental Breakdown Rental agreements in Israel is a whole new ball
game. Real estate lawyer Gad Dishi describes the process, hidden costs, and what
to expect.On Radio NBN
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TO VISITORS TO OUR WEBSITE AS A COURTESY. IT IS NOT INTENDED AS LEGAL ADVICE AND
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LAW SHOULD CONSULT WITH A QUALIFIED ADVOCATE ADMITTED TO PRACTICE IN ISRAEL.
