Security for a rental in Israel: how much a landlord may ask for and how it is returned

How much is allowed: the section 25י cap

The 2017 "fair rental" provisions are not a standalone statute. They are an amendment to the Rental and Borrowing Law, 5731-1971 (חוק השכירות והשאילה), which added a chapter on residential rentals, sections 25א to 25טו. The size of security is limited by section 25י.

According to Kol Zchut, the total security a landlord may ask for cannot exceed the lower of two amounts: three months' rent, or the rent for one third of the lease term.

• 12-month lease: one third of the term is four months, three months is lower, so the cap is three months' rent.
• 6-month lease: one third of the term is two months, so the cap is two months' rent.

Purely to illustrate the arithmetic: at a hypothetical rent of 2,000 NIS a month, the cap is 6,000 NIS for a one-year lease and 4,000 NIS for a six-month lease. This is a worked example, not a "typical deposit".

The chapter is mandatory (קוגנטי): it cannot be contracted around to the tenant's detriment, only in the tenant's favour. A lease clause demanding security above the cap should therefore, as a rule, have no force as to the excess, even if the tenant signed, but only insofar as the cap covers that form of security (see the caveat below).

An important caveat. According to the Kol Zchut page (updated 12 August 2026) the cap applies where the tenant has to pay something for the security, for example a fee for a bank guarantee or a cash deposit. How the cap applies to other kinds (a promissory note, guarantors) is not stated there directly, so we draw no firm conclusion: check the text of section 25י on gov.il or with a lawyer, especially if you are asked for a promissory note.

When the cap does not apply

The residential-rental chapter, and with it the cap on security, does not cover every lease. According to Kol Zchut, section 25טו excludes:

• leases longer than 10 years;
• leases shorter than 3 months;
• rent above a statutory threshold (check the current value on gov.il);
• rentals between family members;
• hotel rooms and homes let for vacation use;
• assisted-living housing (diyur mugan) and dormitories for students, pupils or workers;
• apartments covered by the Tenant Protection Law (protected tenancy).

If your lease falls into one of these categories, do not apply the cap from the previous section automatically; check the sources or ask a lawyer. For an ordinary long-term apartment lease the exclusions are usually not relevant.

Forms of security: deposit, bank guarantee, promissory note, guarantors

Several forms of security appear in practice. They differ in who holds the money and how the landlord can demand payment.

• Cash deposit (פיקדון מזומן). Cash or a bank transfer stays with the landlord. The tenant's main risk is a delayed or disputed return, so get a signed receipt.
• Bank guarantee (ערבות בנקאית). A bank issues a document in the landlord's favour. Make sure the payout conditions in the guarantee match the lease.
• Promissory note (שטר חוב). A debt instrument for an amount the landlord can submit for collection through the Execution Office (הוצאה לפועל). As described, collection can begin without a full court proceeding, and objections must be filed within set deadlines, which is why it is regarded as one of the riskiest forms for a tenant. Do not sign it without reading the amount and the conditions of use, and talk to a lawyer first.
• Guarantors (ערבים). Third parties answer for the tenant's obligations with their own assets. Agreeing to be a guarantor means taking on personal liability.
• Cheques. Post-dated cheques also appear; treat them with the same caution as a promissory note.

For owners: the more complicated the form of security, the higher the chance of a dispute. A simple, documented deposit within the legal limit usually causes fewer conflicts.

When the landlord may draw on the security

According to Kol Zchut and secondary sources, a landlord cannot use the security at will. Among the main permitted cases the sources name:

• the tenant did not pay rent by the date set in the lease;
• defects remain that the tenant is responsible for repairing;
• the tenant did not vacate the apartment at the end of the lease.

The amount is limited to the relevant debt or damage, not the whole security. Before drawing on it, the landlord must give the tenant reasonable advance notice and a reasonable opportunity to cure the breach. Verify the exact list of cases and debts (for example utility and arnona bills) against the text of section 25י: some sources mention other payments as well.

Practical takeaway for tenants: a condition report, move-in photos and receipts for utility payments are the main evidence that damage or debt is not yours. For owners: document the apartment's condition at handover and keep quotes and receipts for repairs.

When and how the security is returned

The landlord must return the security, or what remains of it, within 60 days of the tenant giving the apartment back, or of the tenant's debts being settled, whichever is later. This is what Kol Zchut states, citing the law.

What helps you get it back without a dispute:

• sign a hand-back report, preferably after a joint inspection;
• take dated photos on move-out;
• collect receipts for rent, electricity, water, gas and arnona;
• if the landlord keeps part of the amount, ask for a written calculation with reasons and supporting documents;
• with a bank guarantee, agree on returning the document itself and on written confirmation that obligations are closed.

Reasonable wear and tear from normal use (בלאי סביר) is usually excluded from the damage that can be deducted from the security. Where wear ends and damage begins is decided by a court in a dispute.

For owners: write the 60-day period into the lease, keep to it, and support any deduction with documents.

What to do in a dispute

A typical sequence looks like this:

1. Written demand. Send the other side a letter stating the amount, the basis and a deadline, preferably by registered mail, and keep a copy.
2. Negotiation or mediation (גישור). An alternative to court, if both sides agree to it.
3. Small claims court. Suited to modest amounts. The claim ceiling and the fee change, so check current values on gov.il.
4. Magistrate's court (בית משפט שלום). For larger claims; a lawyer is often worth having.
5. Legal aid. People on low incomes may qualify for legal aid; check the conditions on gov.il.

If the landlord has submitted a promissory note for collection, contact a lawyer immediately: objections in the Execution Office have deadlines, so do not delay.

For owners: before going to court, attach the lease, the condition report, photos, quotes and correspondence. A deduction is hard to justify without documents.

Caveats and what to check yourself

• Thresholds, rates and fees change over the years. Check current values on gov.il and in the Kol Zchut guide.
• The scope of the cap (which forms of security count towards it) is described differently in different sources; verify the text of section 25י itself.
• This guide does not cover commercial or protected tenancies.
• The statute and your lease take precedence over any summary, including this one.

Before signing, it helps to go through the lease contract page; owners can use the listing page. You can also browse the catalog.

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

Read next

• How to Rent an Apartment in Israel Without a Broker
• Apartment lease in Israel: key clauses and what both sides should check before signing
• Arnona, vaad bayit and utility bills in a rental: who pays what
• How to rent out your apartment yourself in Israel without a broker: an owner's checklist