Arnona, vaad bayit and utility bills in a rental: who pays what

Questions like who pays arnona in a rental and how vaad bayit works come up for every tenant and every owner before the contract is signed. This article explains what the law says about running costs of a home, how parties usually split them, how to move bills into your name and which payments cannot be placed on a tenant. It is general information, not legal advice.

Updated: 2026-10-09

Who pays what: the short version

For residential rentals in Israel, the Rental and Borrowing Law, 5731-1971 has contained a dedicated chapter since the 2017 amendment (sections 25A to 25O). It lists the running payments a tenant bears during the lease. Anything not on it is not placed directly on the tenant.

During the lease the tenant bears:

the rent under the contract;
taxes levied on the holder of the apartment, including arnona;
payment for consumption of ongoing services, such as water, electricity, gas and heating;
payments for the day-to-day upkeep of the shared building, paid to the building committee (vaad bayit);
any other payment the minister may set under the law.

The parties can agree otherwise, but as a rule only in the tenant's favor. For example, an owner can take the arnona on themselves. A contract cannot place on the tenant a payment that is not on the list.

An important caveat: this chapter does not apply to every lease. It does not apply, for example, to hotels and vacation lets, assisted living, dormitories, and apartments covered by the Tenant Protection Law (חוק הגנת הדייר). There are also limits based on the contract itself: monthly rent above the statutory threshold (check the current figure on gov.il), a very short term with no option to extend, and a very long term (over 10 years). For rentals between close relatives, as far as we know, the parties may agree on terms that are less favorable to the tenant. Check the terms in such cases.

Arnona (ארנונה): a tax on whoever holds the apartment

Arnona is a municipal tax. In the wording of the law it is one of the taxes levied on the holder of the apartment, and it is named expressly among the payments a tenant bears. In practice, in an ordinary residential lease, whoever lives in the apartment pays arnona, unless the parties agree that the owner will pay it.

Amounts

Rates and classification are set by each municipality separately and depend on the area, size and type of property. We give no figures: check the current amount for the specific address with the municipality before signing.

Discounts

Arnona discounts exist for some categories of residents. Conditions, rates and the application process are set by the municipality within general rules, and they can change, so ask it directly whether you fit any category and which documents you need to submit.

When the contract is silent

This is the most common cause of disputes. Write down who pays arnona, from which date, and in whose name the bill is issued.

When the lease ends

Whoever is registered with the municipality as the holder should tell it that the tenancy has ended. If this is not done, charges may keep being issued to the former resident. Keep proof of the move-out date.

Vaad bayit (ועד בית): day-to-day upkeep, but not everything

The vaad bayit is the body representing apartment owners in a multi-unit building. Its fees go toward the building's shared needs. The law lists among the tenant's payments those for day-to-day upkeep of the shared building, paid to the building's representation. Examples are stairwell cleaning, elevator maintenance or garden care, but the exact list depends on the building.

What does not fall on the tenant

Under the law, the tenant does not directly bear a payment intended for acquiring or improving permanent systems or fixtures serving the apartment. The exception is special adaptations or improvements the tenant asked for. Payments that the owner owes to third parties also cannot be placed on the tenant. So a one-off large levy for renovations or major building works is worth discussing separately rather than folding it into the monthly vaad.

How to find the amount

Owners' rights and duties in a shared building are largely set by the building's bylaws (takanon). Before signing, ask the owner or neighbors what the monthly payment is and what it covers, and write it in the contract.

Water, electricity and gas

Payment for consumption of ongoing services in the apartment, such as water, electricity, gas and heating, is, under the law, a tenant's payment for the lease period.

Electricity and water. If the apartment has its own meters, it is convenient to put the accounts in the resident's name. If one meter serves several apartments, write the way the bill is split into the contract.
Gas. Find out whether the building is on a gas network or uses a cylinder, and who is responsible for replacing the cylinder.
Internet and TV. Clarify who sets them up and pays; if the apartment already has a provider contract, agree who continues it.

If accounts stay in the owner's name while the resident pays, disputes over earlier debts are possible, so move them into your name where you can.

On key handover day, record the meter readings (water, electricity, gas) together with the owner and photograph them with a date.

What cannot be shifted onto the tenant

The law expressly states that a tenant does not directly bear payments that are not on the list, and in particular:

payments for acquiring or improving permanent systems or fixtures serving the apartment (except special adaptations or improvements the tenant asked for);
building insurance (bituach mivne) for the rented apartment;
payments the owner owes to third parties;
the broker's fee when the broker acted on the owner's behalf. A contract clause making the tenant pay the owner's share is void.

As a rule, these rules cannot be varied to the tenant's detriment: deviation is allowed only in the tenant's favor. A clause that contradicts them has no force even if signed. The exception for rentals between close relatives is described above.

What stays with the tenant

The law does not release the tenant from the cost of repairing defects they are responsible for: minor day-to-day repairs and damage from improper use. Repairing a non-minor defect that existed in the apartment remains the owner's duty within the deadlines the law sets.

How to move bills into your name and what to put in the contract

A practical sequence for tenant and owner:

Write into the contract who pays arnona, vaad bayit, electricity, water and gas, and from what date. For the structure of a contract see the lease contract page.
Record meter readings at key handover, with dated photos, and sign a joint record.
Move the accounts into the resident's name. The municipality and each provider decide which documents they need, so check the requirements with the municipality and with each provider before you go.
Keep receipts for arnona, vaad bayit and utilities.
On move-out, take final readings, close the accounts in your name and tell the municipality about the change of resident.

Owners: if you are only planning to let, post a listing and state in it how payments are split. Tenants: in the catalog, ask about the billing terms before the viewing. Bait·Direct publishes listings; the rental terms are agreed between the parties.

Caveats

This is general information, not legal or tax advice. For your own case, consult a lawyer or an accountant.

Arnona rates, discounts and application procedures are set by the municipality; amounts and thresholds change, so check current values with the municipality and on gov.il.
The residential chapter's rules do not apply to leases that fall within its exclusions (for example hotels and vacation lets, assisted living, dormitories, leases above the rent threshold, or terms that are too short or too long). For rentals between close relatives, different arrangements may be possible. There, what the contract says applies, within the law.
A specific building's bylaws and service providers' procedures may differ; check on the spot.
This article does not replace the text of the law. Official material: gov.il and Kol Zchut.

FAQ

Who pays arnona when renting an apartment?

Under the law, arnona is a tax on the holder of the apartment and is on the list of the tenant's payments for the lease period. The parties can agree that the owner pays, but as a rule not the reverse in a way that goes around the law. It is best to write it into the contract. This is general information.

Does a tenant have to pay vaad bayit?

The law places on the tenant payments for day-to-day upkeep of the shared building made to the building's representation. A payment for acquiring or improving permanent systems and fixtures is not placed directly on the tenant. Check the amount and what it covers before signing.

Can a tenant be made to pay building insurance or the owner's broker fee?

As a rule, no. Building insurance and payments the owner owes to third parties are not placed directly on the tenant, and a clause making the tenant pay the owner's share of the broker's fee is void. Deviation is allowed only in the tenant's favor; the exception for rentals between close relatives is described in the article.

Are there arnona discounts?

Discounts exist for some categories of residents. The municipality sets the conditions, so ask it whether you fall into any category.

Sources

Gov.il: Rental and Borrowing Law amendment (2017)

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This is general information, not legal or tax advice. Laws, thresholds and rates change — before an important decision check the primary source on gov.il, and for your own case talk to a lawyer or an accountant.