Rental Contracts for Summer 2026: A Tenant's Guide

Summer 2026 brings new challenges for tenants, from rising prices to security concerns and urban renewal projects. Adv. Idan Ben-Yaakov explains the essential rights every tenant should know.

N12Author: ליאור באקאלו
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Rental Contracts for Summer 2026: A Tenant's Guide
Photo: N12 / שוכרים דירה (אילוסטרציה) | צילום: 123rf

August is approaching, and with it, as every year, the rental contract season begins. Summer 2026 is particularly complex: prices continue to climb, urban renewal projects disrupt existing contracts midway, and now there is also the fear of missile strikes. But you also have rights - a security deposit cannot exceed three months of rent, a malfunction that prevents reasonable living must be repaired within just three days, and an option clause without a fixed price is not really an option. And even if the building enters a TAMA project or is hit by a missile - the tenant has rights that not everyone knows about. With the help of Adv. Idan Ben-Yaakov, who specializes in real estate and family wealth management, we answered the questions that every tenant needs to know.

What guarantees can be demanded of me?

The landlord is entitled to demand various securities from you, such as an open check for municipal tax (arnona) and water payments, and sometimes a third-party guarantee. But when it comes to securities that actually cost you money, such as a bank guarantee, cash deposit, or bank check - the law sets a clear limit. The amount of such securities cannot exceed the lower of two amounts: the rent for one-third of the rental period, or the rent for three months. This limitation applies as long as the rent is lower than 20,000 shekels per month and the apartment is not in assisted living.

What is the law regarding a malfunction in the apartment?

According to the Rental and Lending Law, the landlord must repair a regular defect that is not minor within a maximum of 30 days from the moment a written request is received. If it is an urgent defect, one that does not allow the tenant to live in the apartment reasonably, such as a significant electrical or water malfunction, the landlord must repair it within just three days. If the landlord does not repair it on time, the tenant is allowed to repair it themselves and demand reimbursement of expenses.

Ben-Yaakov notes that it is important to distinguish between reasonable wear and tear, such as paint erosion or an old faucet, which is the landlord's responsibility, and damage caused by the tenant's negligence. He recommends documenting the condition of the apartment on the day of entry, using a photographed handover protocol.

How to check that the MAMAD is functional?

Every apartment built from 1992 onwards must include a protected residential space (MAMAD). The check falls on the tenant: before signing, verify that the blast door seals and locks well, that the armored window closes easily, and that the ventilation openings are not blocked. If the landlord declared a defect in the MAMAD in advance, and despite this the tenant chose to rent the apartment, they cannot argue against the integrity of the MAMAD after signing.

Options to extend the contract

An option right is the tenant's right and not an invitation for new negotiations. A clause stating that the rent during the option period will be determined 'according to the parties' best judgment' or 'free market prices' is not a real option. It is recommended to determine at the first signing how the price will be updated: a fixed addition of a predetermined percentage, linkage to the Consumer Price Index, or a combination of linkage with a ceiling.

Eviction and TAMA projects

Evicting a tenant in the middle of the rental period requires grounds in the contract or law. According to the law, even when the contract includes a condition that allows either party to cancel the contract for any reason, the landlord must notify the tenant at least 90 days in advance, and the tenant must notify the landlord at least 60 days in advance.

When a building enters a TAMA 38 or Pinui-Binui process, the tenant has the right to reduce the rent proportionally to the impairment if the nuisance significantly impairs the reasonable use of the apartment. It is recommended to set an automatic reduction mechanism in the contract.

Missile damage responsibility

Ongoing war is not grounds to stop paying rent if the apartment is habitable. However, in cases of actual physical damage (shrapnel, blast), the tenant may claim a rent reduction. Compensation for structural damage is handled by the Property Tax Compensation Fund (Mas Rehuš) via the landlord, while damage to contents is claimed by the tenant.

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