What should be done so that tenants avoid arrears in contract payments or cause damage to the apartment? What checks should be made on tenants before signing an unprotected tenancy agreement with them? What issues are important and worth summarizing in advance as part of a rental contract?
There is hardly a person in Israel who does not find himself as a party (and often on both sides) to a lease, whether as a tenant or as a landlord.
Renting in Israel often brings with it many difficulties between parties who often find themselves in conflict, often due to lack of trust, knowledge gaps and sometimes even due to various breaches of contract.
We believe that bridging gaps and making the issue of tenancy accessible can resolve many disputes even before they are formed, help a sense of mutual trust and provide security to all parties involved in this type of contract.
Before signing a lease agreement, we recommend a few basic rules:
Landlord:
The most important issue for the landlord is the identity of the tenant and the collateral. We recommend a bank check, but there are other collateral that can be relied upon.
The main benefits of a bank check:
A bank check is issued by the bank and owned by it, is held by the landlord, so the tenant cannot cancel it unilaterally. In addition, it should be noted that a bank check specified in the amount, can be redeemed immediately on behalf of the tenant, can not be canceled and is valid for 7 years.
Additional recommended alternatives (it is possible and even desirable to request more than one insurance) –
Cash payment to account –
You can request a bank transfer, or a cash payment to the tenant provided that this amount is refunded at the end of the lease.
Guarantors –
It is important to make sure that the guarantors have the financial strength to back up the tenant and it is advisable to meet them at the meeting and demand copies of their ID cards.
Debenture –
To the extent that there is a breach of contract you can apply with the promissory note for collection at the Hozaa Lapoal. A promissory note can be signed by a tenant or by guarantors.
Tenant:
It is advisable to check that the property does belong to the landlord. It is possible and even desirable to request a taboo wording and if there is no choice, you can apply for one at a real estate registration bureau (this is a simple, quick and cheap procedure).
Option period – it is recommended to request that an option be given to extend the contract, as much as possible at the same price, but an increase of up to 5% is also acceptable and ensures peace of mind for a good landlord.
Obligation A written contract reflects – it is not recommended to summarize anything orally, as then problems of misunderstanding in communication between the parties may arise. There are cases where apartment owners try to hide information from the authorities and may use tenants as parties to the offense.
It is advisable to insure the property even without the requirements of the landlord.
Mutual recommendations:
- Familiarity – We recommend that both parties try to make minimal acquaintance, if only to know with whom we are contracting in such an important contract (workplace, age, status, family, etc.).
- Insurance – it is recommended for the landlord to insure the property with building insurance (even without tenants), but it is also recommended to require the tenant to take out insurance on his part against third parties, etc.
- Specific instructions – it is recommended to add in writing specific instructions such as a ban on animals, a ban on smoking and any instruction that is essential according to the needs of the property.
- Appendices to the contract – it is recommended to verify the existence of an appendix to instruments / objects so that no claims will arise regarding the correctness and presence of any products. In addition it is possible and desirable to prepare an attached appendix based on the same considerations.
- Checks – it is recommended that payment be made by checks so that there is no dispute about their transfer and they themselves constitute an alternative to collection in execution and in the courts as the need arises.
This article presents a number of well-known anecdotes in the rental market.
Selker Levi – Law specializes in creating leases, accompanying and advising tenants and landlords in both residential and commercial agreements.
You can contact us: 03-5159800
Email: office@sek-lev.com
