Introduction
Rental charges represent a key component of the landlord-tenant relationship in Israel. Beyond the amount of rent itself, the allocation of expenses related to the occupation of a residential property is a frequent source of misunderstanding, particularly for individuals researching the Israeli rental market from abroad. Understanding the legal and contractual framework governing rental charges allows tenants and landlords to anticipate financial obligations throughout the lease term and reduce the risk of disputes.
Legal framework governing rental charges in Israel
The allocation of rental charges in Israel is primarily based on the provisions of the Tenant and Borrowing Law (חוק השכירות והשאילה), as well as on the terms set out in the rental agreement. The legal framework establishes general principles, while the rental agreement defines the practical allocation of expenses between the parties.
Clear contractual clauses relating to charges are essential to the legal security of the rental relationship.
The rental agreement in Israel: essential legal clauses
Main categories of rental charges
Rental charges may be grouped into several categories, depending on their nature and purpose.
Municipal taxes (Arnona)
Arnona is the municipal tax payable for the occupation of a property. In practice, this charge is generally borne by the tenant for the duration of the lease, subject to the provisions of the rental agreement.
Building maintenance fees (Va’ad Bayit)
Building maintenance fees cover the upkeep and management of the common areas of a residential building. Their allocation depends on the contractual arrangements, with routine expenses often borne by the tenant, while exceptional works may remain the landlord’s responsibility.
Individual utility consumption
Costs related to individual consumption, such as water, electricity, gas or internet, are generally borne by the tenant, as they result from the tenant’s personal use of the property.
Distinction between routine and exceptional charges
A key distinction must be made between routine charges related to the normal use of the property and exceptional charges, particularly those arising from major works or structural repairs.
Exceptional charges generally fall under the landlord’s responsibility, unless otherwise provided by the rental agreement in compliance with the applicable legal framework.
Role of the rental agreement in allocating charges
The rental agreement plays a central role in defining how charges are allocated between landlord and tenant. It must clearly specify which expenses are borne by the tenant and which remain the landlord’s responsibility.
Ambiguous or imprecise drafting may lead to disputes during the lease term.
Termination of a rental agreement in Israel
Specific considerations for individuals researching from abroad
For individuals approaching the Israeli rental market from abroad, rental charges require particular attention. Local practices, especially regarding Arnona or building maintenance fees, may differ significantly from those in other jurisdictions.
A clear understanding of these elements enables a more accurate assessment of the overall cost of renting a property and helps prevent subsequent disagreements.
Agency fees in rentals: legal framework and tenant protection
In Israel, agency fees in rental transactions are strictly regulated by law and overseen by the Ministry of Justice. Contrary to certain market practices, the legal principle is clear: a tenant may only be required to pay agency fees if the tenant personally mandated the real estate agent and signed a written brokerage agreement to that effect.
When a real estate agent acts on behalf of the property owner, it is prohibited to require the tenant to pay brokerage fees. Any contractual clause imposing such payment on the tenant is legally void and has no binding effect.
This rule is intended to protect tenants from unjustified charges and to ensure a fair allocation of costs between the parties, in accordance with principles of transparency and good faith.
Regulation of real estate brokerage and client rights
Real estate brokerage in Israel is subject to strict regulation and supervision by the Ministry of Justice. Only agents holding a valid license are authorized to operate. As of December 31, 2025, over 82,000 licenses have been issued since 1996, but only around 27,000 are currently active, with a significant number of licenses suspended, revoked or sanctioned.
This regulatory framework imposes specific obligations on agents, including loyalty to the client they represent, full disclosure of material information relating to the property, and a prohibition on collecting brokerage fees in the absence of a written mandate.
Conclusion
The allocation of rental charges in Israel is based on a balance between statutory provisions and contractual clauses. Municipal taxes, building maintenance fees and individual utility costs must be clearly identified in order to ensure a transparent rental relationship. A structured understanding of applicable charges allows residential rentals in Israel to be approached in a compliant and informed manner, particularly for individuals researching the market from abroad.
Official and professional sources
- Israeli Government – Tenant and Borrowing Law (חוק השכירות והשאילה)
Official overview of the legal framework governing rental relationships
https://www.gov.il/he/pages/rent_law - Wikipedia (Hebrew) – חוק השכירות והשאילה
General presentation of the structure and principles of Israel’s rental law
https://he.wikipedia.org/wiki/חוק_השכירות_והשאילה - Nadlan Center – Legal articles on rental charges in Israel
Legal analyses and information on residential lease regulation
https://www.nadlancenter.co.il - AT Real Estate Law – Legal analyses of financial obligations in rentals
Professional studies on the allocation of charges between landlords and tenants
https://www.at-realestatelaw.co.il - Ministry of Justice – Real Estate Agents Regulation
https://www.gov.il - KolZchut – Rights of clients of real estate agents
https://www.kolzchut.org.il/he/זכותון_ללקוחות_של_מתווכי_דירות_ומקרקעין - KolZchut – Prohibition on charging tenants brokerage fees on behalf of the landlord
https://www.kolzchut.org.il/he/איסור_על_משכיר_דירה_לדרוש_משוכר_דירה_לשלם_דמי_תיווך_למתווך_שפעל_מטעם_משכיר_הדירה
This article is strictly for informational purposes and does not constitute legal advice.