Israel Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Israel's landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Tenant between landlord and tenant. While landlords have solid tools to protect their property and income, tenant protections in Israel are robust compared to many countries, emphasizing due process, limits on eviction, and financial safeguards for tenants. The law reflects a social policy goal to ensure housing stability and fairness, especially in a high-demand, expensive market.

Rents: Can landlord and tenant freely agree rents in Israel?

Yes, in Israel, landlords and tenants can generally agree freely on rental prices, as long as both parties consent and the agreement complies with Israeli law. 

Landlords are allowed to increase the rent, but only under certain conditions. A landlord may raise the rent at the end of a lease term, provided the tenant agrees to the new terms before signing a renewed contract. There is no legal cap on how much the rent can be raised, as long as both parties consent and the increase is not in violation of any existing agreement. However, during the term of an active lease, the landlord cannot increase the rent unless the contract specifically allows for it. Such clauses might include annual increases or adjustments linked to inflation (CPI). Without such a clause or the tenant's written agreement, the rent must remain fixed for the duration of the lease.

Although Israeli law does not require a formal notice period for raising rent, it is common practice for landlords to provide at least 60 days' notice before the end of the lease term if they intend to propose a rent increase. This gives tenants enough time to consider their options.

Deposits

Landlords are legally allowed to request a security deposit from tenants, but the amount is capped. The law states that the deposit must not exceed the lower of either three months' rent or one-third of the total rent for the full lease period. 

Once the lease ends, the landlord is obligated to return the deposit within 60 days, assuming the tenant has met all obligations. This includes returning the apartment in good condition and paying all outstanding rent and utility bills. If these conditions are met, the deposit should be returned in full, often with any accrued interest.

What rights do landlords and tenants have in Israel, especially as to duration of contract and eviction?

Landlords and tenants are free to agree on the duration of the lease. Most leases are signed for one year, but they can legally be shorter or longer, including multi-year agreements. If no specific period is mentioned in the contract, the lease is considered open-ended and can typically be terminated by giving reasonable advance notice—usually 30 days, unless otherwise agreed.

If a lease expires and the tenant continues to live in the property with the landlord's consent and without signing a new agreement, the contract is generally considered to have been extended under the same terms on a month-to-month basis.

A landlord cannot evict a tenant arbitrarily or without legal cause. If a tenant has a valid lease, the landlord must wait until the lease term expires before requesting that the tenant vacate the property—unless the tenant has violated the agreement.

Legal grounds for eviction during the lease term include:

• Non-payment of rent

• Significant property damage

• Illegal activity on the premises

• Subletting without permission, if prohibited in the lease

Even in such cases, the landlord must go through a formal legal process to evict the tenant. This typically involves filing a claim with the local Magistrate’s Court. The court must authorize the eviction, and self-help evictions (like changing the locks or cutting off utilities) are illegal. Landlords who attempt illegal evictions can be subject to damages.

Legislation

Tenant and landlord laws are largely governed by the Israeli Rental and Borrowing Law (1971) and the Fair Rental Law (2017).

How effective is the legal system in Israel?

The legal system in Israel is reasonably effective in handling eviction cases, but the process is not especially fast and requires strict legal procedures. To improve efficiency, Israeli law allows landlords to file an expedited eviction claim, known as a “mesira rechusha” (delivery of possession) under the Civil Procedure Regulations. This fast-track process:

• Applies only to possession disputes, not to financial claims (like unpaid rent).

• It is faster than regular civil lawsuits, typically taking 3 to 6 months from filing to enforcement.

• Requires proper legal notice and filing through the Magistrate’s Court.

Brief history: Recent changes in landlord and tenant law in Israel

The temporary cap on rent increases—25% annually—expired on July 1, 2024. Since then, rent may be raised once per year, linked to the 12‑month average Consumer Price Index (CPI), with no fixed ceiling. In 2025, eviction rules became stricter. Landlords must present a legitimate legal reason to evict a tenant, even at lease end. Specifically, evictions for personal/family use now require concrete proof, and long-term leases (over 10 years) must satisfy additional safeguard criteria.

Security deposit regulations saw updates: landlords are limited to a maximum of three months’ rent held in a bank account, with mandatory documentation required for any deductions. They must also secure tenant consent before altering lease terms, and are prohibited from interrupting essential services like electricity, water, or gas.

There’s been a significant push toward digital modernization—digital lease agreements are now legally valid, and mandatory mediation must occur before tenants or landlords proceed to court.