Renting in Israel is different from renting in most countries. There are special benefits, rules, and hidden costs, plus things every Oleh must watch out for. This guide gives you everything in one place.

1. Financials, Discounts, and Government Benefits

Rental Assistance (Sibsuv / Diur Le’Oleh)

As a new Oleh, you may receive monthly government rental assistance.

• Depends on date of Aliyah, family status, and location
• Sometimes higher in “national priority” areas
• You must apply with the Ministry of Aliyah or their partnered rental-assistance company
• You may need to renew your Teudat Zakaut (eligibility certificate)

This benefit can save you thousands of shekels a year.

Arnona Discount (City Tax)

Huge benefit for Olim.

• 70–90% discount
• Up to 100 sqm
• Valid for a limited time after Aliyah (usually the first year)

Arnona is expensive in many cities, so this discount matters a lot.

High Upfront Costs

When you sign a lease, expect to pay:

• First month rent
• Last month rent (A lot of landlords don’t require this)
• Security deposit / guarantees (In case something is broken, it’s usually a check that’s untouched. Made to the landlord.)
• Broker fee 
• Va’ad Bayit
• Utility transfers

Security Deposit Rules (Very Important)

The 2022 Fair Rental Law limits the deposit:

• Max deposit = the lower of:
  • Three months of rent
  • One-third of total rent for the lease

Deposits may be:
Cash, bank guarantee, unpaid check, or combination.

Broker (Agent) Fee

• Standard = one month rent + VAT
• VAT is 18%

Rent Payment Method

Israel likes post-dated checks.

• Most landlords ask for 12 post-dated checks for the full year
• This requires an Israeli bank account, so open one quickly

2. Lease Agreement and Legal Matters

Contracts Are Almost Always in Hebrew

Do not sign anything you don’t understand.

You should:

• Bring someone Hebrew-fluent
• Use a trusted agent
• Or hire a real estate lawyer (recommended for your first lease)

What’s NOT Included

Israeli rentals often come empty.

You might need to buy:

• Fridge
• Oven
• Stove
• Washing machine
• Drying rack / Dryer
• Light fixtures
• Sometimes even closet units

Always check what is included.

Repairs and Maintenance

Landlord must fix:

• Major plumbing issues
• Electrical problems
• Structural damage
• Retivut (moisture/leaks) unless caused by your actions
• Anything caused by normal “wear and tear”

Tenant must fix:

• Minor repairs
• Light bulbs
• Clogged drains
• Screens, blinds
• Damage caused by unreasonable use

Guarantors (Arvim)

Landlords often want:

• One or two guarantors
  OR
• A bank guarantee
  OR
• Larger deposit if you have no local network

Common for Olim.

Your Legal Rights

The Fair Rental Law (2017) protects tenants.

It guarantees:

• Deposit caps
• Minimum living conditions
• Functioning utilities
• Landlord cannot enter without consent

You have more rights than most Olim realize.

3. Hidden Costs, Utilities, and Ongoing Payments

Arnona (City Tax)

Paid directly to the city every two months.
Amount depends on:

• City
• Street
• Floor
• Apartment size

Olim discount helps a lot.

Va’ad Bayit (Building Fee)

Pays for:

• Cleaning
• Elevator maintenance
• Lights
• Garden
• Repairs
• Shabbat elevator (if relevant)

Prices:

• Old building: 50–120 NIS
• New building: 150–350 NIS
• Luxury building: 300–600+ NIS

Water + Electricity

Usually billed every two months.

Winter electricity can be high because of:

• Boiler
• AC heating
• Radiators

Gas

If building uses gas, there are two systems:

• Gas tank in the building (billed every two months)
• Private canisters (delivered to your home)

4. The Apartment Itself: What to Check

Humidity + Mold

Israel = humidity + old buildings.
Check:

• Corners of ceilings
• Inside closets
• Behind beds
• Bathrooms
• Window frames

Sunlight reduces mold.

Water Boiler

Two systems:

• Solar – good in summer
• Electric boiler – must heat 30–60 minutes before shower

You can ask for a timer to save money.

Parking

Not automatic.
Ask if the spot is:

• Private
• Shared
• First-come, first-served
• On-street with a resident permit

Elevator

Not every building has one.
Know your floor.
A 4th-floor walk-up is no joke.

5. Searching, Neighborhoods, and Due Diligence

Choosing Location

Renting your first year or two is smart because:

• You learn the neighborhoods
• You understand commute patterns
• You adjust to lifestyle
• You avoid buying too early

Consider:

• Proximity to work
• Public transportation
• Religious/secular community
• Anglo-friendly areas
• Safety and noise

Israel can change street by street.

Important Checklist

1. Utilities Transfer

On move-in day:

• Take pictures of water meter
• Take pictures of electricity meter
• Take pictures of gas meter
• Transfer Arnona into your name
• Transfer utilities into your name

This prevents disputes later.

2. Walk-Through

Do a full inspection:

• Test water pressure
• Test AC
• Test all windows
• Check electrical sockets
• Look for mold
• Check drainage
• Check balcony tiles
• Flush toilets
• Photograph everything

This protects you at move-out.

3. Building Condition

Look at:

• Lobby
• Mailboxes
• Stairs
• Noise
• Neighbors
• Cleanliness

It tells you everything about the building culture.

6. Practical Tips for Olim

• WhatsApp is how landlords communicate
• Good apartments go fast
• Ask everything in writing
• Keep proof of every payment
• Always check the Tofes 4 (legal occupancy certificate) for new buildings
• Use your Olim benefits before they expire
• Keep copies of your Teudat Oleh and Teudat Oleh benefits