Lease Security in Israel - Deposits, Cheques, Promissory Notes, Guarantors
Security mechanisms let landlords sleep at night and tenants know exactly what is expected of them. Here are the four common types, when to use which, and the wording mistakes that void them.
Cash deposit
A deposit is cash the tenant gives the landlord at lease start, returned at lease end if the property and rent are in order. The Israeli standard is one month's rent, two for higher-end rentals.
State explicitly: when the deposit is returned, and in what cases it can be offset. Vague wording like 'reasonable condition' invites disputes - prefer 'no damage beyond natural wear, painted if required by contract'.
Many tenants do not realise that Israeli fair-rental provisions may limit the amount of security a landlord can demand in certain residential leases.
Security cheques
Undated, unfilled cheques held by the landlord as a collection tool if the tenant defaults. 3-12 cheques, in the landlord's name, marked 'not for transfer' / 'security cheque'.
Advantage over a deposit: the money stays in the tenant's account, but the landlord can cash immediately on default. Disadvantage: requires discipline from both parties - the tenant must get the cheques back at lease end.
Promissory note (שטר חוב)
A document where the tenant (and sometimes the guarantor) commits to pay a defined amount if the contract is breached. Easier enforcement than a regular lawsuit.
The amount should reflect plausible potential damage and not appear punitive. Israeli courts and enforcement authorities may examine whether the amount is proportionate to the realistic exposure.
Guarantors
A guarantor is a third party committing in the tenant's place. See our dedicated article on lease guarantors for full coverage.
How to combine them - a quick matrix
Rent up to ~₪5,000: one-month deposit + one guarantor, or 3-6 security cheques. No promissory note.
Rent ₪5,000-10,000: 1-2 months deposit + 1-2 guarantors + security cheques.
Rent above ₪10,000: 1-2 months deposit + two replacement guarantors + promissory note + security cheques.
Our tool lets you configure all of this in step 3, and the legal wording is generated automatically.