Lawyer in Israël

Kaufman 6
Tel Aviv, ISRAEL

Commercial rental

Unlike other countries, contracts for commercial rentals in Israel are established under contractual freedom. This means that when preparing the contract, any and all the clauses can be changed, added, modified or withdrawn. It is much more convenient but disconcerting if the person seeking a lease does not know the Israelis. It obviously takes a little more time, but it is worth it.

Another point that differs from other countries, contracts are usually for a minimum of two years. The reason is that the tenant must have the time to amortize his development expenses for the place. The contract renewal date is specified in the contract, as well as expenses and rent, they are often indexed. If there is an option its dates, charges and rent must also be specified.

Do not hesitate to contact a lawyer for the preparation of the contract so that everything is legal. The contract must contain a detailed description of the activity that will take place in the commercial premises.

Definition of the commercial premises

First, you must decide what type of place you want, its extent, interior layout and other details. Kitchen, cellar, parking and other surfaces are often included in the premises. All of these must be included in the contract with their detailed description. This will avoid problems later, including requests for additional payment. It is also important to check the details of the premises at the cadaster.

Another important clause is to specify to which activity it is intended. It is best to detail the activity in case the tenant decides to change or modify his activity.

The contract and its clauses

Being in Israel and the fact that some laws are enforced, the clauses in the contracts may seem strange. Most of the time the commercial leases are very long and have many annexes. These include all possible details on the commercial premises, its layout, insurance policies, the physical plan and so on.

Types of clauses

Negotiations for the completion of the contract are between the landlord and the tenant, if possible, accompanied by their lawyer.

The tenant’s guarantees

As the real estate market in Israel is under constant pressure, landlords will ask tenants guarantees, sometimes even exaggerated. This comes from the lack of premises, especially in the center of the country around Tel Aviv. Homeowners want to unburden themselves from mandatory fees and amortize the risks of renting. This means that the owner will transfer all the costs to the tenant.  This includes the cost for works, taxes and charges for the commercial premises.

Types of guarantees

What makes the difference between the judicial procedures in Israel and in other countries is the accelerated expulsion law. This, accompanied by a simplified recovery of rents, provide security for homeowners.

Delivery of the premises back to the owner

Details about how the tenant must return the premises at the end of the lease are explained in the contract. Never accept if the owner asks to return the premises in the same condition as it was at the beginning of the rental. This sentence is far too general and cannot be applied in most cases. For example, if the local was a travel agency and you made a bar-café, what will you do? Accepting this sentence in the contract will cause you huge costs to return the place as it was.

The most important thing to remember is to make a contract as detailed as possible in the presence of a lawyer. This will allow you to avoid future problems and rent your commercial premises to your satisfaction.