Triple Net (NNN) and Management Fees: Maintenance in Israel

This guide provides general legal information for educational purposes only and does not constitute legal advice. Governed by the Hire and Loan Law, 5731-1971 (effective 1 January 1972), Israeli residential maintenance is primarily the responsibility of the landlord for major issues. Always consult a licensed attorney in Israel for advice specific to your situation. Information last verified: 24 October 2024.

The residential marketPreview unavailable in Israel places a heavy burden on landlords to fix every broken pipe and aging boiler, as the law prioritizes the habitability of the home over contractual freedom. Under the Hire and Loan Law, landlords are required to ensure the property is fit for its intended use and to address significant defects within specific timeframes.

1. The Core Principle: Fitness for Use

Under Section 6 of the Hire and Loan Law, the landlord must deliver the property in a condition suitable for the lease purpose. This ensures that:

1. Habitability: The property must be fit for residential use from the start of the tenancy.
2. Landlord Responsibility: The landlord generally bears the responsibility for major repairs and ensuring the property remains fit for use.
3. Statutory Protection: These core duties are designed to protect tenants from substandard living conditions.

2. Internal and External Maintenance Responsibility

In a residential lease, the division of maintenance duties is governed by law rather than purely by contractual freedom.

• The Landlord's Scope: The landlord is obligated to repair any defect that prevents the normal use of the property, provided the defect is not minor and did not result from the tenant's misuse.
• The Tenant's Scope: Under Section 9, the tenant is generally responsible for minor, day-to-day maintenance, cleanliness, and repairs for any damages they have personally caused.

3. Repair Timelines and Tenant Remedies

The law establishes clear expectations for how quickly a landlord must respond to maintenance requests.

• Urgent Defects: Defects that significantly interfere with the use of the property must be repaired within 3 days of notification.
• Standard Defects: Other non-minor defects must be repaired within 30 days.
• Tenant Remedies: If the landlord fails to make repairs within these times, Section 7 allows the tenant to carry out the repairs themselves and deduct the cost from the rent, or to terminate the lease.

4. End-of-Lease and Contractual Limitations

The legal framework for residential maintenance limits the landlord's ability to shift all burdens to the tenant.

• Non-Waivable Duties: Unlike commercial leases, the landlord's core maintenance duties in a residential setting cannot be easily waived by contractual agreement.
• Wear and Tear: While landlords may use security deposits for tenant-caused damage, they cannot typically use them to fund repairs for reasonable wear and tear or structural issues that are the landlord's legal responsibility.

How Landager Helps

Landager tracks lease terms, maintenance obligations compliance, and important deadlines - making it easy to stay compliant with Israel regulations.

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