Handing Over the Keys to an Apartment in Jerusalem from France

Handing over the keys to an apartment in Jerusalem from the United States is done through a notarized power of attorney and a documented, joint inventory. You delegate the signing authority to the tenant, the vaad bayit, and the municipality via a specific mandate. The recording of installations like the mamad and the doud shemesh must be filmed and signed by two witnesses. This procedure protects your assets and avoids disputes over the property’s condition.

The key handover protocol and the joint inventory

In Israel, handing over the keys is not just a symbolic gesture. It is a legal act that marks the transfer of possession. Unlike in the United States, where a move-in inspection is often conducted solely by the real estate agent, local practice requires the presence of two witnesses or the agent to validate the inventory. This dual approach protects both parties.

If you are in the United States, you cannot be present. We draft a specific power of attorney that authorizes our representative to sign the condition report. This document must list every room, including the mamad and the mamak if the apartment does not have an individual secure storage unit.

Video documentation is essential. We film the opening of each window, the operation of the shutters, and the condition of the floors. For technical equipment, we verify the mazgan (air conditioner) and the doud shemesh (solar water heater). The report explicitly states the condition of these appliances. If the doud shemesh is out of service, this must be stated in writing to prevent the tenant from claiming a repair at your expense later.

The keys handed over must include those for the mamad and common access areas. The lease agreement must list the exact number of key sets. In case of loss, the tenant will reimburse the cost of replacement. This detail prevents future disputes.

• Signature of the condition report by two witnesses or the real estate agent.
• Video recording of the condition of the mamad and installations.
• Statement of the condition of the mazgan and the doud shemesh.
• Comprehensive list of keys handed over in the contract.

Managing subscriptions and bills in the owner’s name

On the day of the key handover, energy and water bills must stop being issued in your name. In Israel, contracts are in the name of the user. If you do not change the account holder, you will receive the tenant’s bills. This creates accounting and tax confusion.

For electricity, the provider is MEV. For water, it is Mekorot. We process the change of account holder the day after the key handover. The tenant must provide their teoudat zeout (ID card) to activate their account. You receive written confirmation of the transfer.

The arnona, the municipal residence tax, is paid directly to the Jerusalem municipality. It is due by the occupant. We verify with the municipality that the account is properly transferred to the tenant’s name. If the transfer is not effective, the municipality will send you payment notices. This is a major risk for an absent owner.

Telephone and internet subscriptions (Bezeq, Hot) must be canceled or transferred. We ask the tenant to subscribe to their own contract. You should not pay for the tenant’s line. If the contract is still in your name, we cancel it before the tenant’s first billing date.

The shtar ‘hov and financial security

The shtar ‘hov is a central legal document in Israel. It is a promissory note signed by the tenant and their guarantor. The shtar ‘hov is signed before the key handover. The amount generally corresponds to two or three months of rent. It covers unpaid rent and damages. The guarantor must provide a teoudat zeout. A guarantor without stable income or a fixed residence is not reliable. We require proof of residence and income. This verification is stricter than in the United States, where a security deposit is often the primary form of guarantee.

The security deposit is distinct from the shtar ‘hov. The deposit covers the condition of the property. The shtar ‘hov covers payment. Do not confuse the two. If you mix the amounts, you lose the ability to recover one or the other in case of a dispute.

The shtar ‘hov must be registered. We keep the original. In case of non-payment, this document allows for the seizure of the tenant’s or the guarantor’s assets. It is your main protection against non-payment.

• Signature of the shtar ‘hov by the tenant and the guarantor.
• Clear distinction between the security deposit and the shtar ‘hov.
• Retention of the original for collection proceedings.

The bedek bayit and the building’s condition

Before the key handover, we arrange for a bedek bayit. This is not a legal obligation like mandatory inspections in some other countries, but a professional inspection. It documents the condition of the building.

The bedek bayit checks the structure, the mamad, and the installations. It distinguishes between repairs at your expense (structure) and those at the tenant’s expense (wear and tear). Under Israeli law, the owner maintains the structure. The tenant maintains the interior.

For older buildings in Jerusalem, walls may have cracks. The bedek bayit documents these cracks with photos. This prevents the tenant from claiming a repair for a crack that already existed.

The doud shemesh is checked by the professional. If the tank is out of service, we have it repaired before the key handover. If the tenant discovers a failure afterward, it is at their expense. The photographic documentation is attached to the condition report.

We ask the professional to write a report. This report is valid in case of a dispute. It specifies the condition of the mazgan and the doud shemesh. It lists the anomalies observed.

The relationship with the vaad bayit and neighbors

The vaad bayit is the building management association. We formally notify them of the change in tenant. The vaad bayit must know the tenant’s name to send charge notices.

Payment of building charges is transferred to the tenant. We request proof of transfer for the first month. If the tenant does not pay, the vaad bayit will bill you. You are jointly liable for payment.

We introduce the new tenant to the neighbors. In Jerusalem, buildings are often dense. A friendly introduction prevents conflicts related to noise or access. The tenant must respect the building rules.

The common mamak on the floor is a shared space. We clarify the rules of use. The tenant cannot store their belongings in the mamak if other residents use it. Disputes over common space are frequent. Written clarification avoids tensions.

We provide the tenant with the vaad bayit bylaws. They must sign it. This attests that they are aware of the rules. In case of violation, the vaad bayit can sanction them. You are not responsible for the tenant’s infractions, but you are informed.

• Formal notification to the vaad bayit.
• Transfer of charge payment to the tenant.
• Introduction of the tenant to the neighbors.
• Signature of the bylaws by the tenant.

Tax obligations and the reshut ha-misim (tax authority)

You pay the arnona. The tabou (land registry) mentions the property. If the apartment is in a condominium, the tabou lists your share, but the lease is an enforceable legal document.

We keep the proofs of the key handover and the shtar ‘hov. In case of a tax audit, these documents prove that you rented out the property. They justify the declared income.

The mas shevach (capital gains tax). Renting does not affect this calculation, unless you have deducted expenses. The tax documentation must be consistent.