The second article in the tenant's guide series, answering common questions on repairs, contract termination, options, guarantees and the parties' rights under lease agreements.
Lease Agreements
The Complete Guide for Apartment Tenants — Questions and Answers
Written by: Adv. Avraham Sisso
Second article
For many years now the rental market has been topical, intriguing, important and even a frequent headline-grabber in the media — especially in light of the surge in prices in recent years, and particularly during the coronavirus period, which shook up the rental market.
Given apartment prices in Israel in recent years, the “dream of owning an apartment” has grown ever more distant, and as a direct result the rental market has grown. As noted, following this growth, many questions have arisen relating, among other things, to lease agreements, the terms of the agreement and the like.
Accordingly, in this article we answer a number of common questions raised by tenants.
This is the place to shatter a common myth — there is no such thing as a “standard lease agreement”; every lease agreement must reflect the specific circumstances of the parties. For example:
An option in the contract — do the parties want an option? Sometimes tenants wish to rent for one year only, because a relocation is planned, an apartment from a developer is due, and several other examples.
Guarantees — which guarantees suit the parties? Usually, the landlord for their part will want a bank guarantee, but tenants prefer a security cheque, since the money is invested in a particular channel.
Basic terms commonly used in lease agreements:
- The tenant (lessee) — the resident
- The landlord (lessor) — the owner of the apartment
- The leased property — the apartment.
Questions and answers:
1. Question What are the tenant’s rights with regard to repairs in the leased property?
Answer The law provides that the landlord must, within a reasonable time (a reasonable time being 30 days) after receiving a demand to that effect from the tenant, repair in the leased property anything that materially interferes with the ordinary use of the property. This does not apply where the defect was caused by the tenant’s negligence, or a defect caused by unreasonable use of the rented apartment, or minor repairs.
A defect whose repair is urgent — the landlord shall repair the defect within a reasonable time and no later than three days from the day they received such a demand; for this purpose, “a defect whose repair is urgent” is a defect that does not allow reasonable habitation of the apartment.
2. Question What are my rights if the landlord does not repair the fault/defect even after several requests?
Answer The tenant is entitled to repair the defect or the non-conformity and to demand from the landlord the reimbursement of their reasonable expenses. In appropriate cases, the tenant must notify the landlord that they must repair the matter thoroughly within a reasonable time, failing which the tenant will carry out the repair at their own expense and reduce the rent — for as long as the defect or non-conformity has not been repaired — in proportion to the reduction in the value of the rental caused by the defect or non-conformity, compared with its value under the contract (subject to what is stated in the lease agreement).
If the tenant wishes to repair the defect or the non-conformity, they must notify the landlord a reasonable time in advance.
It should be said that each of the above actions should be carried out with careful judgment, and after an attempt to communicate with the landlord to reach agreement or understanding, since each of the above actions may be regarded as a unilateral action contrary to the provisions of the lease agreement, which would amount to a breach of the lease agreement.
Therefore, it is advisable to consult a lawyer before any unilateral action.
3. Question The apartment contract contains a clause allowing the landlord to terminate the contract for any reason on 3 months’ notice. Is this clause consistent with the provisions of the law?
Answer Under the provisions of the law, a unilateral clause allowing the landlord to terminate the contract is void.
That is, unless there is a parallel clause allowing the tenant to terminate the contract as well (on 60 days’ notice), the clause is void. On the other hand, a unilateral clause in the tenant’s favour is admissible.
4. Question A one-year lease agreement was signed, but due to the financial situation in light of the coronavirus period, I wish to end the rental term earlier than stated in the lease agreement — what can be done?
Answer Financial hardship and/or the coronavirus crisis do not constitute grounds for terminating a contract. However, the tenant is entitled to find a replacement tenant to “step into their shoes” under the lease agreement.
5. Question We signed a lease agreement and entered the apartment; after moving in we discovered many defects in the apartment. In addition, the contract contains a clause stating that “the tenant declares that they received the apartment clean, freshly painted and fit for habitation.” What options are available to us?
Answer First, before signing the lease agreement, you should inspect the apartment, its fixtures, and everything attached to it (balcony, storeroom, parking), including asking the landlord and the existing tenants (if any) about defects in the apartment. Any defects discovered should, for your benefit, be noted in the lease agreement, stating that the landlord must repair them before you move in.
Second, if you have already moved into the apartment, note all the defects discovered and pass them to the landlord in writing, as soon as possible, for their attention.
In sum, the rule is that reasonable wear and tear is the landlord’s responsibility, and negligence is the tenant’s responsibility. Even if you have already moved into the apartment, the landlord must address the defects discovered in the apartment in accordance with the rule above and the provisions of the law.
6. Question The lease agreement is ending soon, and the landlord wishes to send potential tenants to view the apartment. In light of the coronavirus period, is it possible to tell the landlord that we do not want a movement of tenants through the apartment?
Answer It is the landlord’s right and your duty to show the apartment to potential tenants. At the same time, you must do so subject to the instructions of the Ministry of Health.
7. Question The landlord wishes to come from time to time to see the apartment and inspect what is going on in it — is this acceptable?
Answer The landlord’s visits to the apartment are subject to what is stated in the lease agreement and to prior coordination with the tenants (reasonable hours, reasonable advance notice).
The wording of the law on the matter: the landlord must allow the tenant to use the leased property throughout the rental term as agreed between the parties, without interference on their part or on their behalf.
8. Question What can be done if the landlord has notified us that we are asked to vacate the apartment because we did not inform them that we wish to exercise the option granted to us in the lease agreement?
Answer You need to read the clause dealing with the extension possibility and/or option (if any) in the lease agreement. There you may find the terms of the option — who notifies whom, how far in advance, and how the notice must be delivered.
That clause will contain the answer as to whether the landlord is acting in accordance with the provisions of the agreement.
9. Question Is a landlord entitled to raise the rent at the end of the rental term by any amount they wish?
Answer Yes, unless the lease agreement states otherwise. That said, this is a negotiation in every respect.
In sum, in this article we have touched on some of the issues that arise in lease agreements. As noted at the outset, there is no such thing as a “standard lease agreement”; every lease agreement and/or issue requires a specific examination, and we certainly recommend examining every lease agreement and/or any issue arising from it individually and in the context of the parties’ wishes. To that end, our office would be glad to be at your disposal, to accompany you at any time and to advise you as needed.
*This article is in no way a substitute for legal advice, a legal opinion or individual legal counsel. The contents of this article are only a partial review of the provisions of the law and practice, and these recommendations should not be relied upon or regarded as legal advice.
