Your Guide to Renting an Apartment in Tel Aviv: Step 3

Final Steps

THE LEGAL PROCESS

Once you’ve found your apartment, there are some important legal aspects that you need to be aware of.

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Contract & Guarantees:

Standard leases are on a year-to-year basis, meaning the contract is valid for one year with an option to renew for a second year; most contracts are in Hebrew, however, given the Tel Aviv’s increase in foreign population, English contracts are available and becoming more and more common.

Upon signing the contract, a photocopy of an I.D / Passport must be attached along with additional documentation requested by the owner, such as recommendations from previous home owners, pay slips, letter of employment, etc. Israeli homeowners hardly deal with foreign banks, thus an Israeli bank account must be available prior to signing the contract. The standard guarantees are either 2 – 3 months’ bank guarantee or 2 – 3 months’ security deposit, and/or guarantors.

Bank guarantee The money remains in your Israeli bank account and in this case the funds are closed and can’t be used until one month after the lease is up. The bank issues a letter stating that you have sufficient funds (equivalent to the amount stated in the contract under ‘Guarantees’) in your account and that the owner has the right to use the money if anything goes wrong. This is used in cases where the check bounces, damage to the apartment, bills aren’t paid at the end of the lease, etc. In a bank guarantee, the bank charges an annual fee for such a guarantee and rates vary from bank to bank.

Security deposit Cash or Check which the home owner deposits into his/her account and refunds you at the end of the lease. The money in this case is directly transferred to the owner and the same applies here – the money is used ONLY in cases where the check bounces, damage to the apartment, bills aren’t paid, etc.

Guarantors  If the owner asks for Co-Signers, then know that he/she’s asking for Israeli citizens with an Israeli I.D who will co-sign the contract as a form of additional guarantee. In this case, family / relatives / close friends are the guarantor to the contract, and are obliged to the contract in such events as pointed above.

Prior to signing the contract, you will need to have all your finances & guarantees ready.

So your overall closing costs for your rental are as follows:

• 2-3 months’ security deposit or bank guarantee
• 12 checks (monthly payments). Please note that some home owners prefer quarterly payments (a check for every 3 months of rent). If this is the case, make sure you are financially capable before taking on such a commitment.
• One-month agent fee

In overall, you’d need to have 6 months’ worth of rent ready and available before moving in to your new place, which will cover most of your initial expenses – Guarantees, first months’ rent, agent fees, moving, furniture and equipment (provided it is an unfurnished apartment).

Moving in

Mazal Tov! The big day has arrived! From various moving companies, to purchasing new furniture and appliances, Tel Aviv offers a wide range of services. Tip – Israeli moving companies are never on time! Do not hold up to the time they’ve scheduled with you and add another hour or two (or three or four…) to the equation. Some of them will provide you with packing boxes and some wont. Be on the safe side and make sure you are well stocked before the big day.

The best place to purchase furniture in Tel Aviv is Herzel St in downtown Tel Aviv; you have a wide variety of stores to choose from, all offering you custom made furniture at various prices. Negotiating is common, so take a couple of days to browse and choose the one that fits you best. Electronics and kitchen appliances are best to buy on Allenby St; hardware stores / home improvement stores can be easily found anywhere across the city, where the best ones can be found at the Jaffa’s Flea Market. The Flea Market offers a selection of designer stores to choose from, and if you’re looking for unique, one-piece, hand-made furniture, then expect to pay A LOT! Or, you can simply go to IKEA and purchase everything you need there. The IKEA stores operates the same as in other countries, and offer assembly and delivery.

Your first two weeks in your new place

The first week at your new apartment is an important week. Apart from un-packing and re-organizing, it’s important that you take the first week to carefully check that everything is in order; the first 7 to 14 days are also when (*Arnona – Municipality tax, water, gas and electricity) should be transferred onto your name, and make sure to apply for an insurance policy.

** Olim and diplomats enjoy various benefits and discounts on municipal taxes. Please make sure to check your rights through ‘Misrad Haklita’ or through the administrative office at your Embassy **

Hope you found this guide helpful.

If you’re ready to find your Tel Aviv home or just have questions about the process, feel free to contact us today. We’d be happy to help.