Ellen is an attorney with 20 years
of experience specializing in various fields of the law including commercial
law, contracts, real estate, trusts and estates, labor law, and litigation.
Despite popular belief, and although
many leases are similar, there is no such thing as a standard off-the-shelf
rental agreement. Even though real-estate agents may supply you with such
an off the shelf form, I would advise against using it. Each rental agreement
should set forth the terms and conditions specific to the relationship between
the landlord and the tenant and that are relevant to the particular leased
premises.
A rental agreement should contain
the name, identity number and address of the landlord and it should clearly
state that the landlord has title to the premises. Unfortunately, there have
been cases where people have impersonated the owner and have collected rent
on property they did not own. Consequently, if you are a prospective tenant
it is advisable to verify the landlord’s ownership rights to the premises.
The rental agreement should state
the duration of the lease (usually one year). A tenant may not legally break
the agreement unless the landlord fundamentally breaches its terms. A tenant
who breaks the lease without good cause will be responsible for the remainder
of the rent for the duration of the lease.
If the parties have agreed to an
extension of the lease, otherwise known as an option, the agreement should
determine the amount of rent to be paid during the option period and the
tenant’s exclusive right to activate the option by giving notice. An
option that does not contain these provisions is not a genuine option.
The rental agreement should contain
a description of the premises, the appliances and furniture included in the
agreement. The agreement should also state the condition of the premises.
The tenant is obligated to return the premises in good condition, or in the
condition in which it was received, for that reason it is important to note
the condition of the premises, the appliances and furniture. If there is
any damage or defects in the apartment or appliances, these should be noted
in the agreement.
The agreement should stipulate that
the tenant should only be liable for damage caused by the tenant but not
for repairs resulting from reasonable wear and tear.
It is advisable to request a security
from the tenant. The landlord should keep the security for the term of the
agreement and for at least 2 months following the term of the agreement.
This ensures that all bills for utilities owed by the tenant will be paid,
including the bills which are due to arrive after the end of the term of
the agreement. A common security is in the form of a cash deposit for the
first and last 2 months of rent. This is unadvisable since it does not leave
the landlord with a security deposit at the end of the term of the agreement.
Another option is an unconditional bank guarantee for the sum of 3 months
rent. In addition, the tenant should provide the landlord with a promissory
note signed by guarantors, for any additional damage caused to the premises.
Whether you are a landlord or a
tenant, it is advisable to have your lease checked by an attorney and not
to rely on luck, otherwise you may wind up in a situation you may regret.
A Complete Rental Breakdown
Rental agreements in Israel is a whole new ball game. Real estate lawyer Gad Dishi describes the process, hidden costs, and what to expect.On Radio NBN
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