Tenant & Landlord Rights in Israel
Security Deposit for Rental in Israel
Limits, Return, and Disputes
How much can a landlord legally demand? When must the deposit be returned? What can be deducted — and what cannot? Adv. Liron Elmaliach explains the law and helps you protect your rights.
Types of Security and Legal Limits
Israeli law recognises several forms of tenancy security, and landlords commonly request one or more of them as a condition of signing a lease.
Cash Deposit
The most common form. Under the Fair Rental Law, a landlord may not demand a cash deposit exceeding three months' rent. Any amount beyond this cap is unenforceable. The deposit must be held in trust and returned — minus legitimate deductions — at the end of the tenancy.
Bank Guarantee (חבר ערבות)
A bank guarantee commits the bank to pay the landlord a specified sum if the tenant defaults. Unlike a cash deposit, it is not subject to the three-month cap in the same way — but a landlord cannot draw on it without legal justification. Courts have ordered banks to block payment where the landlord acted in bad faith.
Promissory Note (שטר חוב)
A signed document in which the tenant undertakes to pay a specified amount if the landlord files it with the enforcement office. Promissory notes are enforceable instruments — if the landlord files one unjustifiably, you can apply to court for a stay. Never sign a blank promissory note.
Guarantor (ערב)
A third party who undertakes to pay the landlord if the tenant defaults. The guarantor's liability is governed by the Guarantee Law and the specific wording of the guarantee clause. A guarantor who pays may later recover the amount from the tenant.
Demanding a combination of all of the above — particularly when the total exposure far exceeds actual risk — may itself be considered unreasonable under the Fair Rental Law. An attorney can assess whether the security terms in your lease are proportionate and lawful.
Getting Your Deposit Back
When the tenancy ends, the landlord is required to return the security deposit — less any legitimately justified deductions — within 60 days. Understanding what qualifies as a legitimate deduction is essential to protecting your money.
Normal wear and tear vs actual damage. Wear and tear from ordinary use — faded paint, small scuffs on walls, minor scratches on floors — is the landlord's responsibility and cannot be deducted from the deposit. Only damage that goes beyond what is expected from normal use justifies a deduction: broken fixtures, significant holes in walls, damaged appliances, or missing items.
How to protect yourself. Document the property thoroughly when you move in — photographs with timestamps, and ideally a written condition report signed by both parties. Repeat the process when you move out. This evidence is critical if a dispute reaches court.
Disputing deductions. If the landlord claims deductions you believe are unjustified, send a written objection promptly. If direct resolution fails, the small claims court (Beit Mishpat Shalom — Tavinim) handles disputes up to NIS 75,000 without requiring attorney representation — though professional advice significantly improves outcomes.
For amounts above NIS 75,000, or where the landlord has wrongfully drawn on a bank guarantee or filed a promissory note, proceedings in the Magistrates' Court may be required. Adv. Liron Elmaliach advises both tenants and landlords in deposit disputes and can represent you at every stage.
Frequently Asked Questions — Security Deposit
Common questions about rental security deposits in Israel
Security Deposit Dispute?
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Adv. Liron Elmaliach — Rental Law, Jerusalem