Protected Tenant
What Are the Rights and When Can You Evict?
By Adv. Liron Yitzhak Elmaliach | Updated: 2026 | Reading time: approx. 7 minutes
A protected tenant (Deyar Mugán) in Israel is a tenant who rents under the Tenant Protection Law (Chok Haganat HaDayar) 1972 — one of the most complex areas of Israeli real estate law. These tenancies typically originate from the pre-state period or the early years of the State, and are characterised by very low rents in exchange for a large upfront "key money" payment (Damey Miftacha).
Protected tenancies are increasingly rare but create significant complications when they arise — for landlords, buyers, developers, and the tenants themselves.
Who Is a Protected Tenant?
Protected tenant status applies when all of the following conditions are met:
- The tenancy began before January 1, 1969 (for residential properties)
- The tenant (or their predecessor) paid key money — a significant upfront amount — at the start of the tenancy
- The tenant has continuously occupied the property
- The property is used for the purpose specified in the tenancy agreement
In practice, protected tenants in residential properties are elderly individuals, or the children/relatives of original protected tenants who inherited the status. New protected tenancies cannot be created under current law.
Rights of a Protected Tenant
Grounds for Eviction of a Protected Tenant
The Tenant Protection Law sets limited, specific grounds on which a court can order the eviction of a protected tenant:
- ◆Non-payment of rent — Extended non-payment of even the very low controlled rent can be grounds for eviction — but only after formal notice and opportunity to remedy.
- ◆Sub-letting without consent — Subletting the property (in whole or part) without the landlord's written consent.
- ◆Change of use — Using the property for a purpose other than that specified in the tenancy (e.g., converting a residential property to a business).
- ◆Serious damage to the property — Causing significant structural damage to the property.
- ◆Owner's urgent personal need — If the owner genuinely needs the property for their own residence — subject to strict legal requirements and compensation to the tenant.
- ◆Development/demolition — For approved urban renewal or demolition projects — compensation must be paid.
Agreed Departure — Compensation for Vacating
In many cases, landlords and protected tenants reach a negotiated agreement for the tenant to voluntarily vacate in exchange for significant compensation. This is often the most practical solution for both parties.
The compensation is typically a substantial sum — reflecting the value of the protected tenancy rights being given up. In Jerusalem, where property values are high, compensation agreements for protected tenants can reach millions of shekels.
Both parties need independent legal advice when negotiating such agreements — the calculation of fair compensation is complex and depends on multiple factors including the property's market value, the tenant's age and health, and the remaining value of the tenancy rights.
Dealing with a protected tenancy situation?
Free initial consultation — whether you are the landlord or the tenant, we will explain your rights and options.