Rental Agreement
Complete Guide for Tenants and Landlords
By Adv. Liron Yitzhak Elmaliach | Updated: 2026 | Reading time: approx. 8 minutes
A rental agreement is a legally binding contract — yet many tenants and landlords sign standard templates downloaded from the internet without understanding what they are agreeing to. This guide covers what must be in an agreement, what to watch out for, and what the Fair Rental Law 2017 changes.
What Must Be in a Rental Agreement
- ◆Parties — Full names and ID numbers of landlord and all tenants. This determines who has rights and obligations under the agreement.
- ◆Property description — Full address, apartment number, size, parking space, storage. Be specific — disputes often arise over what was and was not included.
- ◆Term — Start date, end date, and what happens at the end — automatic renewal? Conversion to month-by-month? Clear terms prevent disputes.
- ◆Rent amount and payment terms — The monthly amount, which bank account, what happens if payment is late, and any agreed annual increases (linked to the CPI or a fixed percentage).
- ◆Security deposit — The amount, the form (cash, bank guarantee, post-dated cheques), conditions for deduction, and the return timeline (legally: 60 days).
- ◆Maintenance responsibilities — Who is responsible for what: appliances, plumbing, electrical systems, air conditioning. This is the most common source of disputes.
- ◆Permitted use and subletting — Can the tenant sublet? Can the property be used for business purposes? Without a clear clause, assumptions differ.
- ◆Early termination — Under what conditions can either party end the agreement early, what notice is required, and what is the financial consequence.
The Fair Rental Law 2017 — What Changed
The Rental and Borrowing Law (Amendment — Fair Rental) 2017 introduced mandatory minimum protections for residential tenants that cannot be waived by contract. Key provisions:
For rental agreements of more than 30 days, a written agreement is required. The landlord must provide the tenant with a copy at signing.
The landlord is obligated to maintain the property's essential systems (plumbing, electricity, water, heating) throughout the tenancy. This cannot be contracted out of.
Maximum 3 months' rent for agreements of up to 3 years. The deposit must be held separately and returned within 60 days of departure.
Landlords cannot categorically prohibit tenants from keeping pets — only specific animals that cause damage or disturbance can be restricted.
Common Costly Mistakes
Template agreements often contain clauses that are highly favourable to landlords — some of which are not legally enforceable under the Fair Rental Law, but tenants who do not know this will simply comply.
Without a detailed inventory and photographic record at entry, disputes about damage at departure are almost impossible to resolve in the landlord's favour.
"Tenant responsible for maintenance" means nothing. Specify: which appliances, what is considered normal wear and tear, response time for urgent repairs, and what happens when there is a dispute about responsibility.
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