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Tenant Guarantees and Security Deposits in Israel

Q: Can I ask for both guarantors and a bank guarantee

Landlords often combine instruments, but the total security must stay within what Israeli law permits. Your lawyer can help you structure a combination that is both protective and lawful.

Q: What happens if a guarantor lives in the United States

Enforcing a guarantee across borders is slower and more complex. Many landlords accept an overseas guarantor only alongside another instrument, such as a bank guarantee issued in Israel.

Q: Can I use the deposit to cover the last month of rent

That depends on what the lease says and on the circumstances. It is better to agree in writing how the deposit will be handled at the end of the tenancy than to improvise later.

Q: Where should the original promissory note be kept

Keep it somewhere secure and reachable, such as with your Israeli lawyer or representative. It must be returned to the tenant once the tenancy ends and all obligations are settled.

In the United States a security deposit is usually a straightforward sum of money held by the landlord. In Israel the picture is broader. Landlords commonly ask for a combination of instruments: personal guarantors who sign the lease, a bank guarantee issued on behalf of the tenant, a promissory note known as a shtar chov, or a deposit held in cash or in a bank. Israeli rental law also places limits on how much security a landlord may demand and when it must be returned. For an American owner, understanding each instrument helps you ask for the right protection without asking for more than the law permits.

Personal Guarantors

Guarantors, called arevim, sign the lease and undertake to cover the tenant's obligations if the tenant does not. Their value depends entirely on who they are. A guarantor with stable income and assets in Israel offers real protection, while a guarantor abroad or without means offers little.

Ask for identification and some confirmation of income for each guarantor, and make sure they sign the guarantee section in person or through a verified process.

Bank Guarantees

A bank guarantee is issued by the tenant's bank in your favor and can be called upon under the conditions it states. It is one of the most reliable instruments because the bank, rather than an individual, stands behind it. Check that the guarantee remains valid for a period that extends beyond the end of the lease, so you still have time to claim for damage discovered at move-out.

Promissory Notes and Cash Deposits

A promissory note is a signed undertaking to pay that can be enforced through the Israeli enforcement system if needed. It is common, simple to prepare and familiar to Israeli tenants. Cash deposits are also used, though some landlords prefer instruments that do not involve holding tenant money directly.

Whatever you accept, record it in the lease and give the tenant a written acknowledgment of what you received.

Legal Limits You Should Know

Israeli rental law restricts the total amount of security a landlord may require and sets rules about when and how it must be returned after the tenancy. The details are specific and can change, so ask your Israeli lawyer to confirm what applies before you set your requirements. Asking for more than the law allows may leave part of your protection unenforceable.

Returning Security at the End

Plan the move-out as carefully as the move-in. Compare the apartment with the condition appendix and photos, confirm that final utility and arnona bills are paid and the accounts transferred, and settle any deductions in writing. Return the remaining security promptly and in the way the law requires. A fair, well-documented process protects you if the tenant challenges a deduction.

If your representative handles the handover, ask for a written report with photos the same day.

Choosing the Right Combination

A strong local guarantor and a promissory note for a typical tenancy
A bank guarantee for tenants without local guarantors
Clear documentation of every instrument in the lease
Legal review so the package respects current Israeli limits

Guarantees When the Tenant Is a Student or Newcomer

Students, lone soldiers and new immigrants often lack local guarantors. Instead of refusing them outright, consider whether a parent abroad can arrange a bank guarantee through an Israeli bank, or whether an institution or employer letter can support the application. A flexible but documented approach widens your pool of good tenants without weakening your protection.

Frequently asked questions

Can I ask for both guarantors and a bank guarantee

Landlords often combine instruments, but the total security must stay within what Israeli law permits. Your lawyer can help you structure a combination that is both protective and lawful.

What happens if a guarantor lives in the United States

Enforcing a guarantee across borders is slower and more complex. Many landlords accept an overseas guarantor only alongside another instrument, such as a bank guarantee issued in Israel.

Can I use the deposit to cover the last month of rent

That depends on what the lease says and on the circumstances. It is better to agree in writing how the deposit will be handled at the end of the tenancy than to improvise later.

Where should the original promissory note be kept

Keep it somewhere secure and reachable, such as with your Israeli lawyer or representative. It must be returned to the tenant once the tenancy ends and all obligations are settled.

Elkayam Group

Elkayam Group operates as Kobi Elkayam Real Estate Ltd from Rival Street 37, Tel Aviv, continuing a family story that began in industry in the forties and now spans three generations. Our work in development, urban renewal, TAMA 38 and complex deals is supported by partners who can provide guarantees, and our team works in Hebrew, English and French.

Get in touch to speak with us about your Israeli property.

+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv