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Coverage

Rental deposit

Israel — ערובה / security on a residential lease (Rental and Borrowing Law 1971, s. 25י)

NationalILRead off primary law

Israel

Rule id
deposit.il
Version
1.0.0
In force from
September 14, 2017
Last read against its sources
August 5, 2026
Countries bound
Israel

In plain language

What this regime says.

Since the Fair Rent amendment of 2017, the aggregate security a landlord may take on an Israeli residential lease may not exceed the lower of one third of the rent for the whole term and three months’ rent. It may be realised only on four defined grounds, and only after advance notice and an opportunity to put things right.

Who is covered

Tenants of a dwelling in Israel under a lease within chapter 9 of the Rental and Borrowing Law.

What you get

Return of the security to the extent it was not lawfully realised, plus repayment of anything taken above the statutory cap.

Where claims go wrong

  • Adding up only the cash. The cap is on the aggregate of every security — cheques, guarantee, promissory note and deposit together.
  • Assuming three months is always the limit. On a lease shorter than nine months the one-third limb binds and it is lower.
  • Letting a landlord realise the security without the notice and cure period the section requires.
  • Filing in the Small Claims Court above its ceiling, which simply loses time.

Authority

Every citation,
with its pinpoint.

A claim that cites “EU law” gets filed. A claim that cites Article 7(1)(c) gets answered. These are the exact coordinates this entry rests on.
  1. חוק השכירות והשאילה, תשל"א-1971, s. 25יRental and Borrowing Law, 5731-1971 (חוק השכירות והשאילה), chapter 9 (residential leases), as inserted by the Fair Rent amendment of 2017URL verified 2026-08-05s. 25י — aggregate security may not exceed the LOWER of the rent for one third of the lease term and three months’ rent; grounds and procedure for realising it
  2. חוק ההתיישנות, תשי"ח-1958, s. 5Limitation Law, 5718-1958 (חוק ההתיישנות)s. 5(1) — seven years for a claim not relating to land

Sources

Where a figure is indexed, converted or published by a regulator rather than fixed in the instrument, the provenance is recorded separately. Anything marked as a modelled estimate is exactly that — a model, not a statutory number.

What it imposes

Clocks, defences and the ladder.

A rule module builds these while it evaluates, because a limitation period depends on which forum is open to you. What follows is the structure this regime produces — deliberately with no dates and no figures, because those belong to your facts rather than to the law.

The clocks it starts

  • Seven-year limitation period (Limitation Law 1958, s. 5)Fatal if missedA claim that does not relate to land is barred seven years after the cause of action arose. We have measured from the end of the lease.חוק ההתיישנות, תשי"ח-1958, s. 5 — s. 5(1) — seven years for a claim not relating to landLimitation period

What it entitles you to, beyond money

  • An itemised account tied to the permitted groundsAsk the landlord to say which of the four grounds in s. 25י each deduction rests on, and to produce the notice they say they gave you before realising the security.s. 25י — aggregate security may not exceed the LOWER of the rent for one third of the lease term and three months’ rent; grounds and procedure for realising it

What the other side will say

Each of these is a refusal this regime lets a counterparty attempt, paired with the answer to it. Reading them before you write is worth more than any amount of polish on the letter itself.

"We cashed the cheque / called the guarantee, that is what it was there for"

high likelihood

The landlord deposits the security cheque or calls the bank guarantee without warning, then treats the money as gone.

What answers it

Section 25י allows the security to be realised only on defined grounds — unpaid rent, failure to repair defects the tenant is responsible for, unpaid ongoing charges, or failure to vacate at the end of the term — and requires the landlord to give reasonable advance notice of the intention to realise it and a reasonable opportunity to put right whatever needs putting right. Realising it without that notice is a breach of the section in itself, and it is the first thing to say.

חוק השכירות והשאילה, תשל"א-1971, s. 25י — s. 25י — aggregate security may not exceed the LOWER of the rent for one third of the lease term and three months’ rent; grounds and procedure for realising it

"You agreed to give three cheques and a guarantee"

high likelihood

The landlord points at a lease requiring several forms of security at once and says the tenant consented.

What answers it

Section 25י caps the AGGREGATE of every security taken, not each one separately, and the cap is mandatory — a written agreement does not raise it. Add up the security cheque, the bank guarantee, the deposit and anything else given, and compare the total with the lower of one third of the lease-term rent and three months’ rent.

חוק השכירות והשאילה, תשל"א-1971, s. 25י — s. 25י — aggregate security may not exceed the LOWER of the rent for one third of the lease term and three months’ rent; grounds and procedure for realising it

"We are still working out the costs"

high likelihood

The landlord holds the whole deposit indefinitely while quotes, invoices or utility bills are said to be pending.

What answers it

The statutory return period exists precisely so the landlord can obtain quotes and final bills inside it. It does not restart because they left it late, and it does not licence holding the whole deposit against one unquantified item. Ask them to return everything not genuinely in issue now, and to quantify the rest by a stated date.

"The property needed cleaning and redecorating"

high likelihood

The landlord charges for cleaning, carpet wear, scuffed paint or tired fittings and treats the deposit as a refurbishment fund.

What answers it

Fair wear and tear from ordinary use is not a recoverable loss in any of the regimes this product covers — a deduction must reflect damage or a breach beyond ordinary use, must be evidenced, and must be reduced for the age and remaining life of the item. Ask for the invoice, the check-in and check-out evidence, and the calculation.

"Prove you did not cause it"

high likelihood

The landlord asserts damage and expects the tenant to disprove it, often without a check-in inventory.

What answers it

It is the party seeking to keep the money who must justify keeping it. Where there is no dated check-in record to compare against, an adjudicator has nothing to measure the alleged damage from, and the deduction generally fails on that ground alone.

Where to take it next

  1. Written demand (מכתב דרישה) to the landlordSet out the security given, the sum realised or withheld, the four permitted grounds in s. 25י, and whether you were given advance notice and an opportunity to cure. Give fourteen days.Claim directtypically 14 days
  2. בית משפט לתביעות קטנות (Small Claims Court)Binding on themDeposit disputes are core Small Claims Court work in Israel: no lawyers, a low filing fee, and a quick hearing. The monetary ceiling is index-linked and changes, so check the current figure before you file — if your claim is above it you must sue in the Magistrates’ Court instead.Small claimstypically 90 days
  3. בית משפט השלום (Magistrates’ Court)Binding on themFor claims above the Small Claims ceiling.Courttypically 300 days

Documents

What this regime can produce.

Every one of these is a document you send yourself, in your own name. Duesday never writes to anybody on your behalf and is never anyone’s agent.

The same claim type elsewhere

Albania — rental deposit (Kodi Civil (Civil Code), qiraja)ALNationalAlbaniaKodi Civil (Civil Code), qirajaConfidence: lowAustria — rental deposit (Allgemeines Bürgerliches Gesetzbuch (ABGB) § 16b, and the Mietrechtsgesetz (MRG))ATNationalAustriaAllgemeines Bürgerliches Gesetzbuch (ABGB) § 16b, and the Mietrechtsgesetz (MRG)Confidence: lowBelgium — rental deposit (Regional housing codes: Vlaams Woninghuurdecreet, Décret wallon relatif au bail d’habitation, Code bruxellois du Logement)BENationalBelgiumRegional housing codes: Vlaams Woninghuurdecreet, Décret wallon relatif au bail d’habitation, Code bruxellois du LogementConfidence: lowBosnia and Herzegovina — rental deposit (The law of obligations of the relevant entity (Federation of Bosnia and Herzegovina or Republika Srpska) and the applicable housing legislation)BANationalBosnia & HerzegovinaThe law of obligations of the relevant entity (Federation of Bosnia and Herzegovina or Republika Srpska) and the applicable housing legislationConfidence: lowBulgaria — rental deposit (Закон за задълженията и договорите (Obligations and Contracts Act), наем)BGNationalBulgariaЗакон за задълженията и договорите (Obligations and Contracts Act), наемConfidence: lowCroatia — rental deposit (Zakon o najmu stanova and the Zakon o obveznim odnosima)HRNationalCroatiaZakon o najmu stanova and the Zakon o obveznim odnosimaConfidence: lowCyprus — rental deposit (Rent Control Law of 1983 (23/1983) for controlled tenancies, and the general law of contract)CYNationalCyprusRent Control Law of 1983 (23/1983) for controlled tenancies, and the general law of contractConfidence: lowCzechia — jistota / kauce (Občanský zákoník § 2254)CZNationalCzechiaObčanský zákoník (89/2012 Sb.), § 2254Confidence: high

Other rights in the same countries

Does this one reach your facts?

The engine runs every regime that could apply at once and reconciles them, rather than making you guess which page to read.

Not a law firm. Not legal advice. You send it yourself. This page describes a law; it is not advice about your situation and no outcome is promised.