Questions and Answers

Most of us rent apartments in the city and quite often have questions about various aspects of renting an apartment.

What is worth knowing before signing a lease? What types of guarantees exist and which is the most recommended one? What’s important to know about the apartment’s maintenance? And more

We’ve consolidated all the needed information about renting an apartment in the city.

This information is solely of a general nature and is not a substitute for legal advice. The Tel Aviv-Yafo Municipality and/or the Education, Culture and Neighborhood Renewal Company in Tel Aviv are not liable for the content and for any use made of it. The binding text is prescribed in the relevant provisions of the law as will be in effect from time to time.

Granted, it's not an easy or inexpensive task to find an apartment in Tel Aviv, but as soon as you find one that you like, make sure the following things are in order before signing the lease. That way, you'll guarantee your rights and avoid unnecessary expenses and disputes with the landlord during the lease term.

What steps do you need to take before signing the lease?

    1. Make sure the landlord is the lawful owner of the apartment. There have been a growing number of cases in recent years where con men “sold” or “rented out” properties they never owned. Therefore, it’s imperative to ascertain that the individual who claims to be the owner of the property does in fact own it. You don’t have to demand to see his ID card before meeting with that individual the first time, but you are definitely entitled to ask for the relevant documentation before signing the lease.

    Our recommendation! Ask the landlord for a copy of his ID card and attach it to the lease. Also ask the landlord to show you the deed to the apartment in which his personal data / connection with the property appear.

    2. Consult with a lawyer before signing the lease – The rental market in Tel Aviv is complex and quite often renters are required to sign a lease without giving them an opportunity to consult and examine whether the terms of the lease are acceptable and/or comply with the provisions of the law. We therefore recommend that you speak with a lawyer before signing the lease and, if needed, ask the landlord to revise certain clauses in the lease. You can also negotiate with him about any clause that compromises your rights as tenants.

    Our recommendation! Always consult with a lawyer, even if means paying a fee. A good, clear and fair lease, such as the Recommended Lease Agreement, will make your life easier during the lease term and prevent needless disputes and misunderstandings with the landlord. In many instances, you can also save a lot of money during the lease term.

    1. Add a protocol that describes the condition of the apartment and its furnishings, like the one found in the Recommended Lease Agreement. We advise tenants to add an appendix to the lease called the Apartment Condition Protocol, which should contain a detailed description of all the installed items and fixtures (bathtub, toilet, sinks, walls, kitchen cabinets, closets, and doors which are in the apartment and belong to the landlord and/or to another third party). The protocol should also include a detailed description of any defects and/or flaws existing in the apartment prior to signing the lease and receiving the keys to the apartment.

    The Apartment Condition Protocol will prevent the landlord from making claims during and/or at the end of the lease term about the tenant’s liability for those damages or defects. The protocol is also likely to encourage the landlord to repair the existing defects in the apartment before the tenants move in, thereby making life easier for the tenants.

    Our recommendation! Take pictures of the apartment before moving in.

    1. The vicinity of the apartment

    Our recommendation! Do your best to find out everything about the area in which the apartment is located. Try to ask and understand whether there are development plans in place, such Zoning Plan 38 or other projects. Also inquire about existing infrastructure, whether there is convenient public transportation, etc. A brief check with the neighbors can be informative and tell you whether there are plans to renovate a nearby building or infrastructure development plans, which could affect your routine

An attorney recommended that clauses in the lease be revised and the landlord refuses to do so. What should you do?

If the landlord adamantly rejects any request you make to revise clauses in the lease, then you may want to reconsider signing it. One reason is that it could be indicative of the landlord’s inflexibility and inattentiveness to the needs of the tenant. Another reason is that a lease whose terms are detrimental to the tenant will necessarily lead to an infringement of his rights.

What happens if I moved into an apartment that has defects and didn't notify the landlord before signing the lease?

Pursuant to the provisions of the law, a tenant who knew about a defect when signing the lease and did not ask the landlord repair it at the time the lease was signed, cannot demand a reduction in the rent due to that defect.

When signing a lease, you'll be required to provide guarantees to the landlord. The guarantees are meant to protect the landlord should you violate the agreement – e.g. for failing to pay the rent or causing actual damage to the apartment. It's important to be familiar with the different kinds of guarantees because, heaven forbid, if the matters go awry, the type of guarantee will have a critical impact on your situation.

Promissory note

  1. Explanation: This is the best option from the tenant’s perspective! A promissory note is a legal document, a kind of check, that constitutes your obligation to pay the amount appearing on the note should you violate the rental agreement. If the agreement is violated, the landlord is entitled to cash the promissory note at the court (similar to filing a claim due to a bounced check), but you can object that it be paid immediately. In such a case, the court will decide whether the tenant has to pay the promissory note.

Recommended amount: up to 50% of the annual rent.

Bank guarantee

Explanation: This is the worst option from the tenant’s perspective! As its name suggests, a bank guarantee is provided by the bank to the landlord (against a debit made in the tenant’s bank account for the amount in question) and it imposes no restrictions on the landlord. In other words, the landlord doesn’t have to prove that you violated the lease in order to execute it and he can do so at any stage, with no advance notice whatsoever. Another drawback associated with the landlord’s demand to receive a bank guarantee is the considerable.

fee the tenant has to pay the bank (about 5% of the guarantee amount per year).

If a bank guarantee is a condition for renting the apartment, when signing the lease, try and limit the circumstances under which a landlord can execute the guarantee and obligate the landlord to give you advance written notice about his intention to execute it, enabling you to object. It’s often possible to reach an agreement with the landlord about him paying half of the bank fee. Alternatively, try and reach an agreement about an alternative form of guarantee (e.g. security deposit) as described below.

Recommended amount: try and avoid this demand or try and reduce the amount as much as possible.

Security deposit

Explanation: This is a sum of money that is deposited by the landlord when signing the lease. This can be a good alternative to a bank guarantee as you also save the bank fee. However, make sure you have proof that the landlord made the deposit. Keep the printout from the bank that shows the withdrawal of the deposit from your account and have the landlord sign a document in which he confirms receipt of the deposit from you, which must be returned to the tenant after the end of the lease.

Recommended amount: the equivalent of one month’s rent.

Security check

Make sure to write the words “For Security Only Pursuant to the Terms of the Lease” on the check. If the landlord cashes the check even though the rental agreement was not violated, you can demand reimbursement.

Recommended amount: up to 50% of the annual rent.

Blank checks

Explanation: These are signed checks that bear no amount or date, made out to the Municipality, water company, Israel Electric Corporation and gas company. If you fail to make the payments to these service providers, the landlord can use the checks to pay your outstanding debts. Make sure that each check bears the name of the payee (for example, Israel Electric Corporation) and that the check bears the words “Account Payee Only’ printed or written on it between two diagonal lines.

Guarantors

Explanation: In most rental agreements, the landlord will demand that the tenant present guarantors who will be liable for the tenant’s obligations under the lease. If the lease is violated and the landlord is unable to collect outstanding debts from the tenant, the landlord is entitled to demand the money from the guarantors and initiate legal proceedings against them. You may be asked to present the guarantors’ pay slips to prove their ability to meet the payments.

Important! Any oral agreement between you and the landlord is not binding. Make sure all the details appear in writing in the lease.

Under which circumstances can a landlord execute the guarantees provided by the tenant?

The law cites only four instances in which the landlord is entitled to execute the guarantees he received:

  1. Failure to pay the rent on time.
  1. Failure to pay the other payments that the tenant is responsible for.
  1. Failure to repair defects in the apartment caused by the tenant.
  1. Failure to vacate the apartment on the agreed upon date.

Regardless of the circumstances, the landlord must give the tenant advance notice about his intention to execute the guarantee and must give the tenant adequate time to rectify what needs rectifying. Should the tenant fail to do so, the landlord is entitled to execute the guarantee within 60 days of the end of the lease.

I rent an apartment for NIS 5,000 a month. When signing the lease, the landlord demanded that I give him a bank guarantee in the amount of NIS 30,000 in addition to a security deposit in the amount of NIS 10,000. Was he entitled to demand those amounts?

It’s important to remember that the amounts of the guarantees and deposits are open to negotiation between the tenant and the landlord. However, the last amendment to the Rental and Borrowing Law limits the guarantee amount that a landlord is entitled to demand from a tenant. The maximum amount stipulated in the law is one-third of the rent for the entire lease term or three times the monthly rent – whichever is lower.

Therefore, in the case described in the above question, the landlord was not entitled to demand a bank guarantee or security deposit amounting to NIS 30,000 because the rent is NIS 5,000 a month. The maximum guarantee that the landlord was entitled to demand was only NIS 15,000.

It’s important to remember that this limit applies only to guarantees which require the tenant to lay out money (A bank guarantee is an example of that because the bank debits the tenant’s account when issuing the guarantee. The tenant’s account is credited in the amount

of the guarantee only after the lease ends and the guarantee document is returned to the bank).

Other types of guarantees, such as promissory notes or letters of guarantee, do not require the tenant to lay out money. For that reason, their amount is not limited and the landlord can demand that the tenant sign a promissory note for any amount he chooses. Nevertheless, it’s clear that the landlord’s demand must be reasonable and proportional.

הוספת סעיף אופציה לחוזה חוסכת כאב ראש בחידוש החוזה, ומאפשרת להשאיר בידיכם את ההחלטה אם להמשיך בשכירות או לא. מומלץ להכניס לחוזה השכירות סעיף אופציה להארכת תקופת השכירות בשנה נוספת, שיגדיר כי שכר הדירה יישאר כפי שהוא, או יוגבל להעלאה של עד חמישה אחוזים.

כמה זמן מראש השוכר והמשכיר צריכים להודיע על מימוש האופציה?

בהתאם להוראות החוק, על כל אחד מהצדדים להסכם השכירות חלה חובת “יידוע לקראת סוף תקופת האופציה”. סעיף זה נועד למנוע אי הבנות לקראת סיום החוזה ולאפשר ודאות לשני הצדדים לקראת סיום תקופת השכירות ו/או לקראת תקופת האופציה.

כך, בעל הדירה מחויב להודיע לשוכר עד 90 יום לפני תום תקופת השכירות האם בכוונתו לחדש את ההסכם ואם כן, באילו תנאים, ואילו השוכר מחויב להודיע לבעל הדירה לא יאוחר מ-60 יום לפני תום תקופת השכירות האם ברצונו לממש את האופציה ולהאריך את השכירות לשנה נוספת.

מומלץ לשמור עותק מההודעה בכתב על מימוש האופציה ואישור של בעל הדירה שקיבל את ההודעה (אפשר גם בוואטסאפ או בדוא”ל).

When renting an apartment, it's important to be aware of the relevant types of insurance that exist. That way you'll be covered if, heaven forbid, something happens in the apartment. It's essential to understand the different types of insurance, which of them as tenants you're entitled to by law, and what types of insurance you should probably take out on your own.

The landlord is demanding that I take out third-party insurance for any damage caused to the apartment. Is that even my responsibility?

The landlord is entitled to demand that you take out third-party insurance. However, the amendment to the Rental and Borrowing Law stipulates that the landlord is required to take out structural insurance for the apartment and that he cannot demand that the tenant take out that kind of insurance (structural insurance).

Our recommendation! It’s important to know that even if the landlord doesn’t demand that you take out third-party insurance, you can still be sued for any damage incurred by any third party due to any act or omission on your part when making use of the rented apartment. For example, if one of your guests slips on the floor, he could sue you for damages and if you don’t have insurance, you may have to pay substantial damages. Therefore, taking out third-party insurance, whose cost amounts to a few hundred shekels a year, could spare you a big headache. The same holds true for property insurance. If the apartment has expensive equipment or furniture that belongs to you, it is your responsibility to insure them because, in most cases, the landlord’s policy will not cover theft and/or loss and/or damage caused to your property.

You've decided to go abroad and sublet the apartment to someone else. Before doing that, it's worth reviewing the lease to make sure that you're allowed to do that. If not, be aware of the risks should the lease prohibit subletting the apartment.

I intend to go abroad during the lease term and want to sublet the apartment. Do I have to notify the landlord?

Most leases contain a clause that prohibits or limits the tenant’s right to sublet the apartment without receiving the landlord’s written consent in advance.

Subletting the apartment requires the landlord’s written consent in advance. If you failed to do so, it could be considered a fundamental breach of the rental agreement, which in turn could lead to eviction from the apartment and payment of damages.

I sublet my apartment and didn't notify the landlord. Am I taking a risk?

By not notifying the landlord, tenants take a double risk. The first is that the landlord will find out and consider it a fundamental breach of the agreement, with all that it entails. The second risk is that the subtenant will cause damage to the apartment and/or to other parties while subletting the apartment, in which case the tenants could face legal action taken against them by the landlord for not obtaining his consent or for violating the provisions of the lease.

The last amendment to the Rental and Borrowing Law does not provide a clear answer as to which of the parties has to pay the real estate agent's fee. Consequently, it leaves a lot of room for interpretation and, apparently, for future litigation as well. Nonetheless, it's important to understand the significance of the amendment to the law and what should be done before signing a brokerage agreement.

Who is required to pay the agent's fee?

The last amendment to the Rental and Borrowing Law does not provide a clear answer as to which of the parties has to pay the real estate agent’s fee. Consequently, it leaves a lot of room for interpretation and, apparently, for future litigation as well.

According to the last amendment to the Rental Law, if the landlord commissioned the services of a real estate agent to show the apartment to prospective tenants – the landlord is the one who has to pay the fee.

However, in those cases where the landlord commissioned the services of a real estate agent and the agent advertised the apartment on the Yad2 website or on Facebook, if the tenant approached the agent, the tenant will be required to pay the agent’s fee even though it was the landlord who commissioned the agent’s services.

Furthermore, some real estate agents have exploited the loophole in the law by claiming that they don’t have an “exclusive” broker agreement and can therefore collect their fee from the tenants.

What can be done to avoid paying the agent's fee?

Our recommendation! Before scheduling an appointment to see the apartment and signing a broker agreement, you should try and contact the landlord directly without using the services of the agent. It’s important to understand that most apartments advertised on the Internet are ones that agents found on the web and advertise them as apartments which they are offering, often without the landlord even being aware of that.

And if you've already contacted an agent?

It’s important to find out from him whether he has an exclusive broker agreement for the apartment he advertised (in which case his fee has to be paid by the landlord) or doesn’t have an exclusive agreement (in which case his fee has to be paid by the tenant).

Either way, we always recommend that you get clarifications from the agent in writing before seeing a prospective apartment and, of course, before signing a broker agreement. In any event, it’s advisable to negotiate with the agent in an attempt to avoid paying or to reduce his fee.

לפני המעבר לדירה חדשה ודאו שלא נותרו חובות ישנים של הדיירים הקודמים לרשויות וכל החשבונות הקודמים שולמו במלואם. העבירו בעירייה את חשבון הארנונה והמים על שמכם (חילופי מחזיקים), ובצעו קריאת מונה של חברת החשמל וקריאה של מד המים. אחרת אתם עלולים להיקלע להתעסקות מתישה עם חובות שאינם שלכם. כמו כן, ודאו בעירייה שאינכם רשומים בדירה שעזבתם.

מהם תשלומי החובה החלים על השוכר מעבר לשכר הדירה?

על פי החוק, על השוכר לשלם את דמי השכירות, ארנונה, תשלומים עבור צריכה שוטפת של מים, חשמל וגז, וכן תשלומי אחזקה שוטפת לנציגות הבית המשותף.

לעומת זאת, תשלומים המיועדים לרכישת או השבחת מתקנים המשרתים את הדירה, כגון שיפוץ מעלית הבניין, חדר המדרגות, לובי הבניין ו/או זיפות גג הבית המשותף ו/או החלפת דוד השמש – יחולו על המשכיר, וכך גם ביטוח הדירה המושכרת (ביטוח מבנה), ותשלומים שחב המשכיר לצד שלישי, כגון אנשי מקצוע עמם התקשרו בעלי הדירות בבית המשותף בהסכם ו/או מיסים אשר מטבעם חלים על בעל הדירה.

Living with roommates is very common in Tel Aviv. Needless to say, tensions can sometimes occur between roommates and between the roommates and the landlord. This in turn raises legal questions about the liability roommates have towards each other and/or towards the landlord in the event of a dispute or violation of the rental agreement by one of the roommates.

I saw that the lease says that the roommates "collectively and individually undertake." What does that mean?

If you’re like most people, you didn’t know your roommates before living with them and can’t be certain that they will meet their obligations throughout the lease term. For that reason, it’s very important to avoid making a commitment in the lease which makes you liable for the obligations of your roommates and/or liable for a violation of the rental agreement by any one of them.

Our recommendation! Don’t agree to a condition in the lease that makes you and your roommates “collectively and individually” liable for every obligation under the rental agreement. If that is stipulated in the lease and one of your roommates violates the rental agreement, you could be liable for the debts of that roommate and even face eviction from the apartment even though you complied with the terms of the lease.

What should I do if one my roommates pays the rent on time but doesn't pay his share of the utilities and maintenance payments?

In such a case, you can approach that roommate and demand (preferably in writing and keep a copy of it) that he pay his share of the expenses. If he refuses to pay his share, it’s advisable to report it to the landlord (because this is a fundamental breach of the agreement by one roommate and you could be asked to leave the apartment because of his actions). At a later stage, you can consider suing that roommate for the money you had to pay instead of him.

So, you managed to find a place to rent and in the location you wanted. Before signing the lease, it's advisable to take a minute and examine the condition of the apartment so there won't be any unpleasant surprises. And if you've already signed the lease and only later found defects in the apartment, it's important to be aware of your rights and options should you decide to demand that the landlord repair the defects. Who is responsible for repairing defects or damages in a rented apartment and within what time frame? In general, the landlord is responsible for repairing defects or damages pertaining to installed items (air conditioner, storage area or any fixture in the apartment) and infrastructures, such as the water and electrical systems, plumbing, gas line, and walls, are the responsibility of the landlord, unless he can prove that the tenant caused the damage intentionally or negligently when making "unreasonable" use of the apartment.

What is reasonable use? What is natural wear and tear?

Most leases contain the terms “reasonable use,” “reasonable wear and tear” or “natural wear and tear,” which are meant to delineate the liability of both parties to the rental agreement in the event of a defect or damage. For example, dampness on the ceiling is the responsibility of the landlord because the damage was caused due to a structural flaw in the apartment and/or building and for that reason the landlord has to repair it.

According to the last amendment to the Rental and Borrowing Law, the responsibility for repairing any defect in the property that was caused due to reasonable and ordinary use by the tenant lies with the landlord. The repair must be made within 30 days of the date on which the landlord received notification of the defect from the tenant. If the defect requires urgent repair, namely if it prevents reasonable use of the apartment – the landlord must repair it within just three days. Should the landlord fail to do so, the tenant is entitled to repair the defect on his own and deduct the cost of the repair from his rent.

The law also stipulates that in unusual cases where the landlord is required to repair a defect or flaw in the apartment (for example, a structural defect, dampness, plumbing problem, etc.) and refuses to do so relying on some illogical reason, the tenant is entitled to deduct a portion of the rent paid to the landlord that is commensurate with his compromised ability to make reasonable use of or enjoy the apartment. For example, should the landlord fail to repair a material defect in one room in a three-room apartment and that defect prevents reasonable use, the tenant can claim that the value of the rental declined by one-third as a result of the defect in question. Nevertheless, we advise tenants to consult and carefully examine the implications of taking such a step.

What is unreasonable use?

On the other hand, a landlord can refuse to repair a clogged drain in the apartment by claiming unreasonable use by the tenant (e.g. if female hygiene products were flushed down the toilet), in which case the tenant could be liable for the repair.

The last amendment to the Rental and Borrowing Law addresses these repair issues and stipulates that the tenant is required, at his expense, to repair any defect in the apartment that was caused due to “unreasonable use.”

Our recommendation! It’s very important to keep a record of the notices given to the landlord about damage or defects in the apartment. That way the landlord cannot claim that he was unaware of the defect and it will also expedite the repair in accordance with the times specified in the law (30 days for a “regular” repair or 3 days for an “urgent” repair).

What can be done if the lease contains a clause that exempts the landlord from liability for a defect found in the property?

The law also stipulates that clauses that currently exist in some leases, which exempt the landlord from liability for unsuitable living conditions (structural defect, dampness, plumbing problem, etc.) or for a defect detected in the property, are illegal and consequently void.

It’s important to note that pursuant to the provisions of the law, a tenant who knew about a defect or unsuitable living conditions in the apartment when he moved in and did not demand their repair by the landlord when signing the lease, cannot rely on them when making a claim at a later stage – for instance, as a reason to deduct money from the rent due to unsuitable living conditions.

I moved into a furnished apartment. Am I liable for the condition of the furniture?

In the Recommended Lease Agreement, we advise tenants to add an appendix to the lease called the Furnishings Inventory, in which you specify every item (e.g. furniture or electrical appliance) found in the apartment, while citing the condition of those items when the tenant moved in.

Furthermore, it’s important to note in the lease that only in those cases where you made unreasonable use that resulted in damage to the furnishings are you liable for them.

What can be done if the lease contains a clause that exempts the landlord from liability for a defect found in the property?

The law also stipulates that clauses that currently exist in some leases, which exempt the landlord from liability for unsuitable living conditions (structural defect, dampness, plumbing problem, etc.) or for a defect detected in the property, are illegal and consequently void.

It’s important to note that pursuant to the provisions of the law, a tenant who knew about a defect or unsuitable living conditions in the apartment when he moved in and did not demand their repair by the landlord when signing the lease, cannot rely on them when making a claim at a later stage – for instance, as a reason to deduct money from the rent due to unsuitable living conditions.

I moved into a furnished apartment. Am I liable for the condition of the furniture?

In the Recommended Lease Agreement, we advise tenants to add an appendix to the lease called the Furnishings Inventory, in which you specify every item (e.g. furniture or electrical appliance) found in the apartment, while citing the condition of those items when the tenant moved in.

Furthermore, it’s important to note in the lease that only in those cases where you made unreasonable use that resulted in damage to the furnishings are you liable for them.

When renting an apartment, the nature of our relationship with the landlord isn't always that clear. The amendment to the Rental and Borrowing Law defines how tenant-landlord relations are supposed to work. Know that you, too, have rights when it comes to visits by the landlord in the apartment and those rights should be anchored in the lease.

One time the landlord showed up at the apartment unannounced. Can he do that?

The amendment to the Rental and Borrowing Law stipulates that the tenant must allow the landlord to inspect the apartment and make repairs, provided that the landlord gives the tenant reasonable advance notice and does the utmost not to disturb the tenant.

In most leases, landlords reserve the right to visit the rented property from time to time. Consequently, the lease should stipulate that despite the landlord’s right to inspect the condition of the apartment, his visits must be scheduled in advance with the tenant and respect his privacy.

You have a pet? It usually makes looking for an apartment more difficult because landlords often don't want pets in their apartments. Before signing the lease, make sure it doesn’t contain a clause that prohibits having pets in the apartment. That way you'll avoid needless disputes down the line.

I have a dog. Do I have to tell the landlord?

 In principle, a tenant is not legally bound to tell the landlord that he has a pet (obviously one that is suitable to raise in an apartment building). However, landlords who don’t permit their tenants to have a pet will make sure in advance to include that prohibition in the lease.

Therefore, before signing it, check whether the lease contains a clause that permits you to have pets in the apartment or, alternatively, contains no clause that prohibits it.  Make sure of that to avoid needless disputes later on.

If you move into an apartment and decide to leave before the end of the lease because you're moving in with your boyfriend or girlfriend or feel like living in a different part of the city, you should take a minute and read what the law says about this matter and know what you should insist on including in the lease before signing it.

Am I allowed to leave the apartment before the end of the lease? If I am, how should I go about it?

The Rental and Borrowing Law stipulates that a tenant is entitled to find a replacement tenant who will assume his obligations pursuant to the lease. The tenant change is contingent on the landlord’s consent, who is entitled to refuse only if he has a logical reason (for example, the replacement tenant doesn’t have a steady job or doesn’t have an active bank account).

And how should the lease address the matter of leaving early?

It’s important that the lease include your right to find a replacement tenant regardless of the circumstances. It’s also worth trying to reach an agreement that will enable you to leave the apartment after giving 60- or 90-day advance notice without having to pay the remainder of the rent and/or without being required to find a replacement tenant.

If you find a suitable replacement tenant, have him meet your landlord (preferably with you present) and accompany him until a new lease is signed with the landlord.

Our recommendation! It’s important to document the conversations and/or the meetings between the landlord and the replacement tenant in the event that the landlord refuses to allow the replacement tenant to move into the apartment due to some illogical reason.

What happens if the landlord refuses to allow a replacement tenant to move in due to some illogical reason?

Under certain and unusual circumstances, you’ll be entitled to transfer tenancy in the apartment to the replacement tenant without obtaining the landlord’s consent if his objections to the replacement tenant are not valid (in such a case, it’s advisable to consult with a lawyer who is knowledgeable in these matters before taking any unilateral action).

In recent years, and especially in the central part of the country, a growing number of building permits are being issued in order to increase the supply of apartments in the market. New construction and Zoning Plan 38 projects, which are taking place throughout the city, usually include renovation of the building façade and the addition of an elevator and/or terraces. In some cases, tenants have to vacate their apartments until the construction is completed. These projects can adversely affect the routines of the people who live in the building that is being renovated and of those who live in nearby buildings.

A Zoning Plan 38 project has begun in the building I live in. The works carried out during the day are a nuisance and very noisy. I asked the landlord to allow me to move out of the apartment while the renovations are going on, or at least reduce the rent due to the noise and the fact that I'm deriving less enjoyment from the apartment, but he refused. What are my rights?

The cost of an apartment in a building where extensive renovations of the Zoning Plan 38 kind are being carried out is undoubtedly lower than an apartment which is not in the middle of a construction site. For that reason, apartments in the former category are rented out at a much lower price compared to their regular market value as long as the renovations are going on. Some tenants are willing to tolerate nuisances such as noise, dust and dirt in a building that is being renovated in exchange for a considerable reduction in their rent.

Our recommendation! When negotiating with the landlord about the lease, find out if he knows about planned renovations in the apartment or building and ask him to declare what he knows in the lease. In the majority of cases, the landlord knows in advance about expected works or renovations and most likely will not volunteer that information to prospective tenants for fear of compromising his ability to rent out the apartment.

I moved into an apartment and was surprised to see that renovations were underway. What can I do?

If you signed a lease and the landlord did not notify you about planned extensive renovations in the building and shortly after moving in you discovered that renovations were about to start, you can claim that the landlord acted in bad faith and hid material information from you relating to the apartment. When claiming bad faith in certain circumstances, you can demand to terminate the rental agreement or, alternatively, demand compensation and a lower rent due to your expected loss of enjoyment from the property.

In such a case, it’s advisable to consult with a lawyer in order to understand your rights.

What kind of compensation is commonly given in the case of renovations that began after moving in and without my knowledge?

Based on our experience in similar cases, landlords are usually willing to reduce the rent at varying rates, depending on the nature and scope of the renovations, their duration and their effect on the tenants. For example, in a building where extensive renovations are being carried out, the rent is typically reduced at a higher rate (often amounting up to a 40% reduction). On the other hand, in a building where the renovations are more minor, the reduction could amount to only 10% – depending on the circumstances of the matter, the terms of your lease and your ability to negotiate with the landlord.