Renting out your property in Israel can be a great source of income, but it’s important to approach it professionally to protect your investment and ensure a smooth relationship with your tenants. Whether you’re a local landlord or an overseas owner, following the right process is essential.
So, what are the key steps to renting out my property in Israel? Here’s a practical guide.
- Prepare the Property: Make sure your house or apartment is clean, safe, and in good repair. Fix any leaks, test the electrical systems, and ensure all appliances are working. A well-maintained property attracts better tenants and can command a higher rent.
- Determine the Right Rent: Research the rental market in your specific neighborhood (e.g., Modi’in). Look at online listings for comparable properties to set a competitive price. Consider factors like the size of the property, its condition, amenities (parking, elevator, balcony), and proximity to schools, parks, and transportation.
- Market Your Property: You can advertise your property on popular Israeli websites like Yad2 and Madlan, in local community groups, or by using a licensed real estate agent. An agent will handle showings and screen potential tenants, which is especially helpful if you live abroad. High-quality photos are essential for any listing.
- Screen Potential Tenants: This is a crucial step. You should ask for references from previous landlords, proof of income (e.g., pay stubs or a letter from an employer), and a copy of their Israeli ID card (Teudat Zehut). The goal is to find reliable tenants who will pay rent on time and take good care of your property.
- Use a Solid Rental Contract: Do not rely on a generic, handshake agreement. Use a legally sound rental agreement (Choseh Schirut) prepared or reviewed by a lawyer. The contract should clearly state:
- The monthly rent and payment due date.
- The length of the lease (typically 12 months).
- The security deposit amount.
- Responsibilities for paying bills like Arnona (municipal tax), Vaad Bayit (building committee fees), and utilities.
- The landlord’s and tenant’s responsibilities for repairs.
- Secure Guarantees: It is standard practice in Israel to ask for security against non-payment of rent or damages. Common forms of guarantees include:
- Security Deposit (Pikadon): Typically equal to 1-2 months’ rent, held by the landlord and returned at the end of the lease if there are no issues.
- Bank Guarantee (Arvut Bankait): A guarantee from the tenant’s bank that you can cash if they default. This is the strongest form of security.
- Personal Promissory Note (Shtar Chov): A signed note, often with guarantors (arevim), that can be used for legal action if needed.
- Conduct a Walk-Through and Handover: Before the tenant moves in, walk through the property with them and document its condition with photos or video. Both parties should sign a document confirming the state of the property and any existing issues. Then, you can hand over the keys.
- Manage the Property: During the lease, you are responsible for major repairs (e.g., plumbing infrastructure, solar water heater). Be responsive to your tenants’ needs while also ensuring they adhere to the terms of the lease.
By following these steps, you can effectively manage the process of renting out your property in Israel, minimizing risks and creating a positive experience for both you and your tenants.
