The Complete Guide for Apartment Renters

Congratulations! After much searching, you have found the apartment you were looking for.
whether you're renting an apartment for the first time, renewing a lease, or moving to a different rental property - This guide is for you.

 
Now, you have received a draft of the rental agreement from the landlord and you are required to review it before signing. However, you're not sure if the contract is fair to you, if all the clauses are legal, and if there is a need for additional notes and changes before you sign.

 
Below is a brief guide with important pointers for you as renters, which you should consider and incorporate into the rental agreement:

 

1. Verification of Ownership of the Property:

First and foremost, to avoid unpleasant surprises in the future, it is essential to verify and confirm that the person renting you the apartment and signing the agreement on the other side is indeed the owner or the rights holder (or has the exclusive power of attorney), and he's indeed authorized to carry out this action and rent the apartment to you.

 
*Many times in the past, we have encountered cases where problems arose during the rental period regarding the identity of the landlord. It turned out that the person who signed the agreement was not the property owner (or not the only owner), and initially, they were not authorized to sign the agreement. This led to unpleasant situations for the tenants in the future and even evictions by the real owner.

 
A simple action like producing a tabu extract (land registry) document and verifying it against a photo of the lessor's ID will confirm whether the lessor is indeed the owner of the apartment. If you discover that the registered owner is not the person who is signing the contract with you, request to receive authorization from the owner to sign on their behalf.

 
In the case of an inherited apartment where the rights of the heirs have not yet been registered as owners, request to see the inheritance order of the deceased. If there are multiple heirs but you are dealing with only one of them, request written consent from the other heirs for the lease of the apartment by the heir to you.

 

2. General Inspection of the Apartment and Its Surroundings:

 
During a brief inspection of the apartment and its facilities, defects may be discovered that should be noted in the agreement, whether they are defects that the lessor is obligated to repair before your entry into the apartment or defects that cannot be repaired at all and/or do not prevent reasonable living in the apartment. It is advisable to prepare an appendix of defects + visual documentation( photos and videos) indicating each malfunction to avoid unnecessary disputes and mutual accusations regarding liability for damage at the end of the lease and the return of the apartment to the lessor.

 
It is also important to conduct an additional inspection after signing the contract and your initial entry into the apartment, as defects and malfunctions are sometimes discovered only upon a second look and after spending a full day or two in the apartment. In such a case, report the malfunction or defect to the landlord, including visual documentation, and keep a record of the report.

 
Before signing the contract, it is advisable to check in advance the amount of the municipality taxes and the building management fees for the apartment so that you can prepare in advance for your monthly expenses, in addition to the rental fees. Additionally, it is recommended to inquire with previous tenants if there are any irregular water and electricity bills for the apartment, which may indicate a problem with the apartment's infrastructure.

 
Furthermore, before signing, it is important to check if the apartment is located in a building where an urban renewal project (TAMA 38 etc.) is planned or in a building adjacent to a construction project, in order to avoid a future situation where living in the apartment is not possible due to construction work and disturbances of noise and dirt. If you find that this is indeed the case, it is recommended to add a clause to the agreement regarding a reduction in rent during the construction period or alternatively a clause that allows you to terminate the lease with early notice before the start of the work.

 

3. Verification of Attachments (Parking, Storage, Yard, etc.):

 
Similar to verifying ownership of the leased property as mentioned above, in cases where it is presented to the tenant that the apartment includes attached parking, storage, or a private yard, it is essential to verify this by checking the registration of these attachments in the land registry documentation and even through a more thorough examination of the joint building file (and in some cases, through a shared usage agreement).

 
Moreover, it is crucial to specify in the lease agreement that if it is discovered in the future that one of these attachments does not belong to the apartment or to the lessor - and it turns out it's a shared property or belongs to another apartment entirely - it will constitute grounds for fundamental breach of the agreement due to deception and false representation by the landlord.

 

4. Essential Details in the Contract:

 
Ensure that essential details of the agreement are written in a detailed and clear manner that leaves no room for ambiguity, such as:

 
- Names of the parties, ID numbers, and current addresses.

- Contact details (phone No. and email) of the parties.

- Full address of the apartment including floor and unit number.

- Commencement and termination dates of the lease period, including extension options dates, if applicable.

- Rent amount (during the lease period and extension option periods), method and date of your monthly rent payments.

- Details of any guarantees provided to the landlord.

 
It is not uncommon for some of these details to be omitted from the final draft of the agreement, and later, during a future dispute, it can be genuinely difficult to ascertain the original intentions of the parties, whereas if these details were specified in the agreement, it could have prevented future conflicts and disputes.

 
Remember: What is agreed upon between the parties but not documented in the contract will be difficult to prove in court in the future.

 

5. Termination of Lease Period Without Cause:

 
According to the Rental Law, apart from cases where the agreement can be terminated due to fundamental breach, a unilateral clause allowing only the landlord to terminate the agreement without cause should not be included unless the tenant has a similar right in the agreement.

 
If the parties agree to add a mutual termination clause as mentioned above, the notice period for termination without cause by the landlord should be a minimum of 90 days in advance, and for termination by the tenant, it should be a minimum of 60 days in advance. Any change to these periods that is detrimental to the tenant is ileagal.

 
Previous court rules from the past in similar cases where the rental agreement includes a one-sided clause allowing termination of the agreement without cause by the landlord only, determined that such a clause should be seen as null and void.

 

6. Substitution of Tenant in Your Place:

 
In many cases, tenants may wish to leave the apartment in the middle of the lease period for various reasons, and if they have not included a termination notice in the rental agreement, they may find themselves obligated to continue paying rent until the end of the contractual period, even if they have vacated the apartment.

 
It is advisable to include a "substitution of tenant" clause in the agreement, which stipulates the substitution of the tenant with another tenant who will take over the original tenant's obligations under the original rental agreement.

 
Additionally, if the landlord agrees to add a substitution of tenant clause as mentioned above, it is advisable for the tenant to specify in the agreement that "the landlord shall not unreasonably refuse to accept any substitute tenant, unless there are reasonable grounds for refusal."

 

7. Guarantees:

 
It is important to ensure that if you provide a cash deposit (including a cheque deposited by the landlord) or a bank guarantee, the total amount of these guarantees does not exceed the maximum amount set by law - up to three months' rent. All other types of guarantees and securities such as promissory notes and security cheques are not limited in amount by law.

 
In any case, it is important to document the transfer of any amount or guarantee to the landlord and have them sign an acknowledgment of receipt immediately upon delivery. It is also advisable to obtain a copy of each cheque provided in advance for rent payments and additional payments.

 

8. Preservation of Tenant Rights in Case of Sale of the Apartment:

 
It is advisable to ensure that the rental agreement includes a clause stating that in the event the landlord sells or transfers his rights in the apartment to a third party, the tenant's rights under the rental agreement will not be affected, will be preserved, and will be upheld in full by the new owners, and no additional obligations shall be imposed on the tenant beyond those stipulated in the rental agreement.

 

9. Unlawful Clauses and Instructions in the Contract:

 
Be aware that you are not required to sign a rental agreement that contains clauses that contradict the provisions of the Rental Law. Examples of common unlawful clauses:

 
- A clause stating that the tenant is responsible for repairs to the apartment resulting from natural wear and tear, including malfunctions of systems or facilities that serve the apartment.

- A clause requiring the tenant to pay for building insurance (as opposed to contents insurance and third-party liability insurance that the tenant is allowed to apply for according to the law).

- A clause requiring the tenant to contribute to expenses incurred by the landlord towards third parties, such as lawyer fees hired only to represent the landlord and brokerage fees of a broker who acted only on behalf of the landlord.

 

10. Repairs and Physical Changes in the Apartment:

 
If the landlord has committed to you to make repairs and/or physical changes to the apartment, or if you wish to make such changes by yourselves, it is recommended to specify this in detail in the lesae agreement or in an addendum attached to the agreement. Obtain the landlord's consent in advance and in writing, specifying the identity of the party who will bear the associated costs.

 
While this clause may seem self-evident, many disputes that end up in court arise due to the failure to raise this issue in writing.

 

11. After Signing:

 
Make sure that one original copy of the signed agreement remains in your possession. Have a documentation of utility meters, such as electricity, water, gas, etc., and transfer of utilities holder on your name with the relevant authorities upon taking possession of the apartment (and also upon returning the apartment to the landlord at the end of the lease period).

 
Inspect the apartment again upon your first entry after signing the contract, and immediately report to the landlord any malfunction or change that occurred since your last visit to the apartment or any issues you noticed for the first time upon your entry.
 

Good luck and enjoy your new home!

 

* The above constitutes only a partial recommendation and review of the legal provisions on the subject above and without any liability or commitment. You should not rely on this guide as legal advice, opinion, or substitute for private legal advice from a lawyer for a specific case.

 

** The Rental Law, 1971, overrides some of the provisions mentioned herein under certain circumstances, and each case should be examined according to its specific circumstances and facts and as stated in the rental agreement between the parties.

 

We will be happy to assist you at any time and provide you with advice as needed.

 

Moshe Binyamini - Law Office