Who Pays Property Tax, HOA, and Water in an Israeli Rental
In an Israeli rental the tenant usually pays property tax (arnona), routine HOA dues, water, electricity, gas, and internet - all consumption and services they benefit from. The Fair Rental Law explicitly enumerates which charges may be imposed on the tenant and forbids passing other costs to them - such as building insurance, property improvements, and the landlord's broker fee. The split should be written explicitly in the contract to avoid disputes.
What the tenant pays
Property tax (arnona): the tenant is the "holder" of the property, so by default they pay arnona. Register the tenant as holder with the municipality at lease start and remove them at lease end.
Routine HOA, water, electricity, gas, internet: all ongoing consumption charges are on the tenant, unless agreed otherwise in writing.
What stays with the landlord
Building insurance: the landlord's responsibility. The tenant is at most responsible for their own contents and third-party insurance.
Structural repairs and defects not caused by the tenant: on the landlord, per the Fair Rental Law.
Special HOA levies / renovation funds: charges that are really upgrades or structural repair of common property are on the landlord, while routine HOA is on the tenant.
Landlord's broker fee: under the Fair Rental Law, a broker commission the landlord paid to find a tenant may not be passed on to the tenant.
How to word it in the contract
Spell out exactly who pays what in a dedicated clause. Do not settle for "the tenant pays all bills" - separate ongoing consumption (tenant) from building insurance and structural repairs (landlord).
In our tool the bills clause appears in the financial-terms step, where you can mark which charges are included in rent and which the tenant pays separately.
Special cases
Apartment with a solar heater or central gas: state explicitly who pays and who maintains.
Shared water meter across units: if there is no separate meter, agree a clear split formula upfront.
Gap before move-in: who pays arnona and electricity between key handover and actual move-in - worth settling in the contract.
Frequently asked questions
Who pays arnona (property tax) in a rental - tenant or landlord?
By default the tenant pays arnona, because they are the "holder" of the property. Register the tenant as holder with the municipality at lease start. A different arrangement can be agreed in writing.
Who pays HOA dues in a rental?
Routine HOA dues are usually paid by the tenant. Special levies or a renovation fund - effectively upgrades or structural repair - are customarily on the landlord.
Can the landlord charge the tenant for building insurance?
No. Building insurance is the landlord's responsibility. The tenant is at most responsible for their own contents and third-party insurance.