Rent Increase — What Is Permitted Under Israeli Law?

Introduction: Rent Increase Under the Tenancy Law

Rent increase is one of the most complex and legally significant issues in a tenancy agreement in Israel. The Tenancy Law protects tenants from arbitrary rent increases and establishes clear limitations on a landlord's ability to raise rent. Many tenants in Israel are unaware of their rights, and sometimes receive notices of increase that do not meet legal standards.

At Mandelbaum, Gor, Witzman-Gor and Partners, Law Offices in Ramat Gan, we assist tenants in understanding their full rights under the Tenancy Law. Over 18 years of experience in civil and commercial law enable us to provide accurate and practical legal advice on this matter.

What Is the Tenancy Law and How Does It Protect Tenants?

The Tenancy Law in Israel is the primary legislation governing residential tenancy relations in Israel. The law establishes rights and obligations for both parties — the lessor (property owner) and the lessee (tenant) — and in many cases, the protections afforded to tenants are stronger than those appearing in the tenancy agreement itself.

Under the Tenancy Law, a landlord may not increase rent arbitrarily. The increase must be:

• With advance notice — The landlord must notify the tenant of the increase at a specific time before its effective date
• At a reasonable rate — The increase cannot exceed certain limits established by law
• In accordance with specific conditions — There are cases in which an increase is entirely prohibited
• Without discrimination — Rent cannot be increased to force a tenant to vacate

What Are the Legal Limits on Rent Increases?

The Tenancy Law establishes clear limitations on the amount of increase. Generally, the permitted increase is linked to the rate of adjustment of the Consumer Price Index or other rates established by law. In recent years, amendments to the Tenancy Law have imposed stricter protections for tenants, particularly in years when there is a significant increase in the cost of living.

The overall limits include:

• Annual increase — Generally limited to a predetermined rate (which may be linked to the Consumer Price Index adjustment or a fixed rate under law)
• Increase at the start of a new term — When the tenancy agreement renews, rent may be increased, but subject to certain restrictions
• No increase during a specific period — The law contains periods during which a landlord is not permitted to increase rent at all

It is important to note that each case is unique, and the permitted increase depends on the specific circumstances of the tenancy agreement, its date of execution, and changes to the law over the years.

Legal Process for Raising Rent — Steps a Landlord Must Take

If a landlord wishes to raise rent in a lawful manner, he must follow a series of clear steps. Compliance with these steps is critical — if a landlord fails to execute the process properly, the rent increase may be legally void.

1. Advance Notice
The landlord must notify the tenant of the increase by written notice. The notice must be clear, accurate, and contain all relevant details — the landlord's name, the apartment's address, the amount of the increase, the date on which the increase will begin, and the date the notice is given. Generally, the notice must be provided at least 30 to 90 days before the increase takes effect (the exact period depends on the contract terms and the law).

2. Substantiation of the Increase
A landlord must prove that the increase meets legal conditions. This means he must demonstrate that the increase does not exceed the maximum permitted by law, and that it is based on a legal reason (such as index adjustment, contract renewal, or changes in the physical conditions of the apartment).

3. Right to Object or Agreement
After receiving the notice, the tenant has the right to object to the increase or attempt to negotiate its amount. In some cases, a tenant and landlord can reach an agreement on a lower increase. If no agreement is reached, a lawsuit can be filed with the court.

4. Documentation and Clarity
It is important that all communication be in writing — notices, agreements, and remarks. This protects both parties and provides clear evidence in case of legal disputes.

When Is a Landlord Not Permitted to Raise Rent?

There are certain cases where rental law completely prohibits a landlord from raising rent, regardless of the amount of the increase or the reason for it.

No Increase During a Fixed-Term Lease
If the rental agreement is for a fixed term (for example, one year), a landlord cannot raise the rent until the term ends. The increase can only begin upon renewal of the agreement or in the following period.

No Increase as Punishment or to Force a Tenant to Leave
Rental law strictly prohibits a landlord from raising rent in order to force a tenant to vacate the apartment. This is considered an abuse of the landlord's rights and can lead to legal proceedings against the landlord.

No Increase During Periods of Legal Protection
In some cases, when there is legal protection (such as a right to extended occupancy), a landlord cannot arbitrarily raise the rent.

No Increase in Special Circumstances
If a dwelling has special circumstances — such as advanced age, health condition, or a family with children — a court may issue an order protecting the tenant from arbitrary rent increases.

Comparison: Legal vs. Illegal Rent Increases

To understand what is permitted and what is prohibited by law, it is important to compare examples of legal rent increases with those that are illegal:

What You Should Do If You Received Notice of a Rent Increase

If you received notice of a rent increase, it is important to act quickly and thoughtfully:

Step 1: Review the Notice
Ensure that the notice is in writing, that it contains all required details, and that it was given within the advance notice period required by law (typically 30–90 days).

Step 2: Calculate the Increase
Check whether the increase complies with the legal limit. If you are confident in your calculations, you can compare the increase to the index update rate or another rate set by law.

Step 3: Consider Your Options
If you believe the increase is illegal or unreasonable, you have several options:

• Consult with an attorney specializing in civil-commercial law
• Send a written objection letter to the landlord, detailing the reasons for your objection
• Attempt to reach an agreement with the landlord on a lower increase
• File a lawsuit in court if an agreement cannot be reached

Step 4: Keep Documentation
Preserve all notices, letters, and communications with the landlord. This will be essential if the case goes to court.

At Mandelbaum, Gor, Witzman-Gor & Co., Attorneys at Law in Ramat Gan, we assist tenants at every stage of the process. We examine the legality of the increase, send objection letters, and when necessary, represent tenants in court. Your first legal consultation is free — we assess your situation at no cost and offer an appropriate legal solution.

How Mendelbaum, Gor, Witzman-Gor & Co. Law Offices Can Help You

With over 18 years of experience in civil and commercial law, Mendelbaum, Gor, Witzman-Gor & Co. Law Offices in Ramat Gan specializes in tenants' rights and apartment rentals. We assist tenants at every stage of the process — from an initial review of the legality of the increase, through drafting opposition letters, to full representation in court if necessary.

Our representation stages:

• Initial legal consultation — We examine the increase notice, your agreement, and all circumstances. We assess whether the increase meets legal requirements and what your chances are in opposing it.
• Drafting an opposition letter — We write a strong legal letter detailing your opposition and its legal basis, and submit it to the landlord.
• Negotiations — We communicate with the landlord to reach an agreement on a lower increase or cancellation of the increase.
• Court representation — If no agreement is reached, we represent you in court, seeking to reduce or completely cancel the increase.

It all starts with a complimentary initial legal consultation. We believe every tenant has the right to quality legal advice, so we do not charge for the first consultation. During this meeting, we listen to your story, review your documents, and offer an appropriate legal solution.

Why Choose Mendelbaum, Gor, Witzman-Gor & Co.?

Over 18 years of experience — A boutique family law firm founded in 2008 by Attorney Keren Mendelbaum, with deep expertise in civil and commercial law.

Personal and dedicated representation — We work closely with each client, understand their unique circumstances, and offer customized legal solutions.

Complimentary initial consultation — We believe every tenant has the right to quality legal advice, so we do not charge for the first consultation.

Located in Ramat Gan and Petach Tikva — Easy to reach from anywhere in Israel. Our Ramat Gan office is located at Donesh 1, and an additional office in Petach Tikva at Yuni Netanyahu 8.

Family-oriented and trustworthy — We treat every client as a family member, with full commitment to protecting their rights.