Transferring Water and Electricity Subscriptions to a New Tenant in Israel

In Israel, water and electricity accounts are registered in the name of the individual linked to the teoudat zeout (national ID card). Transferring these accounts is not a simple name change; it requires an administrative procedure with the national utility (Israel Electric Corporation) and the local water provider. The owner must provide proof of ownership and the lease agreement to close their account and open one for the tenant. This prevents confusion regarding billing and unpaid balances.

The named account process: why the owner’s name is no longer sufficient

• Explanation of the billing system based on the teoudat zeout: In Israel, unlike in the United States where billing can sometimes follow the address, the specific individual or entity is billed. Keeping an account in the owner’s name while the tenant occupies the unit creates immediate legal and financial risks.
• The difference from the US system: In the US, the landlord often remains the primary point of contact for public utilities. In Israel, the tenant is directly responsible to the electricity company and the local water authority. The tenant must sign the subscription contract themselves.
• The role of the shtar ‘hov: Although this promissory note covers rent and fees, it does not cover debts owed to public utility companies. If the tenant does not transfer the accounts, unpaid electricity or water bills cannot be recovered through this document. This forces the owner to deal directly with the providers.
• The need to provide the lease agreement: Utility companies require written proof of the tenancy to authorize the transfer. The lease must clearly state the effective date and the exact address of the apartment. Without this document, the transfer request will be rejected.

The main risk lies in the time gap between signing the lease and the actual activation of the new contract. Until the provider validates the transfer, bills continue to be issued in the name of the previous holder. For an owner residing in the United States, this means receiving consumption statements they do not control. We recommend never allowing a tenant to occupy a property without initiating this administrative process immediately upon handing over the keys. This step protects the owner from debts accumulated by the previous tenant, which could otherwise be charged to the current account holder.

Electricity transfer: contacts and documents

• Identifying the provider: Electricity is managed by the Israel Electric Corporation (IEC). The owner should check their last bill for the customer number and service zone to ensure it is indeed the IEC and not an alternative provider, although the IEC dominates the residential market.
• The key document: Proof of ownership or the certificate of registration in the tabou. To transfer the account, the IEC requires proof that the owner is the legal titleholder of the unit. This document must be recent. If the owner is a company, the articles of association and a power of attorney for the legal representative are required.
• The online procedure: The IEC offers a web portal for owners. The owner can initiate the closure of their account and the transfer to the tenant by providing the tenant’s teoudat zeout. This is a crucial step because the owner remains responsible for bills issued until the effective date of the transfer, which can take several days.
• Managing prepaid meters: In some older or specific buildings, prepaid meters may exist. In this case, the transfer is not a standard administrative procedure but rather the handover of the card or access code to the tenant. You must verify the type of meter before initiating the named account transfer process.

The distinction between the main meter and sub-meters is essential. In many buildings in Netanya, the IEC bills the owner for the building’s general meter, while tenants are billed via sub-meters. You must verify if the apartment has a direct individual meter with the IEC or if it relies on internal allocation. In the first case, the transfer is direct. In the second, the tenant does not sign a contract with the IEC but pays the owner or the building manager, who handles the allocation. This nuance completely changes the procedure. For owners who cannot handle these steps themselves, our property management service handles the verification of the meter type and initiates requests with the IEC.

Water: the complexity of local authorities

• Fragmentation of service: Unlike electricity, water is not centralized. The provider depends on the municipality (such as Netanya) or the regional company (Mekorot or Mekorot HaYam). The owner must identify the correct contact on their water bill, as procedures vary from one authority to another.
• The link to arnona: Although arnona is a distinct municipal tax, it is often billed by the same entity as water. The owner must verify if the transfer of the water account affects the billing of arnona. Generally, arnona remains the owner’s responsibility, while water is the tenant’s responsibility. Confusion on this point can lead to disputed unpaid balances.
• Meter reading at key handover: It is imperative to record water meter readings at the time of key handover and have the new tenant acknowledge this figure, ideally in writing or via a timestamped photo. This reading serves as the reference for the transfer. Without this clear starting point, the tenant may dispute previous consumption.

Water is a service often managed by local authorities rather than a single national entity. In Netanya, the procedure is done via the municipality’s portal. The owner must submit a change of titleholder request, attaching the lease and proof of ownership. It is common for the water bill and arnona to arrive on the same statement. Therefore, ensure that the transfer concerns only water consumption and not the municipal tax, which remains due by the owner. If the previous tenant has unpaid balances, these are often linked to the subscription and not the tax. The owner must request a final account balance from the water authority to ensure no debt remains before closing their file.

Meter readings: the proof to keep

The meter reading is the most important document for avoiding disputes over consumption. It must be taken in the presence of the incoming tenant and the outgoing tenant, or the owner if they are handing over the keys. The exact figure must be noted on a document signed by both parties, or photographed with the time and date visible. This document serves as the reference for the administrative transfer. It determines the date when responsibility for consumption changes. Without this reading, the provider may attribute the consumption of the transition month to the owner, creating a financial dispute. We emphasize the precision of this reading: a reading error of a few units may seem minor, but it can become a point of contention if consumption is high. The document must be kept in the lease file, alongside the contract and proof of payment of fees.

Allocation of responsibilities in the lease

The lease agreement must clearly state who is responsible for the utility accounts. In Israel, the common practice is that the tenant covers electricity and water, while the owner pays the arnona and vaad bayit (building association fees). It is crucial that the lease explicitly states that the tenant commits to transferring the accounts to their name within a specific timeframe after key handover. This timeframe should be short, ideally a few days. The lease must also specify that the tenant is responsible for all consumption after the transfer date, even if the bill arrives in the owner’s name. This clause protects the owner in case of delays in the administrative process. If the tenant refuses to transfer the accounts, the owner can invoke this clause to seek damages or terminate the lease, depending on the contract terms. Clarity in the text is paramount to avoid ambiguous interpretation.

The pitfalls of unpaid balances and the shtar ‘hov

The shtar ‘hov is a powerful tool for recovering rent, but it has no value for public utility debts. If a tenant leaves an apartment with unpaid electricity or water bills, the owner cannot enforce the shtar ‘hov for these amounts. They must then initiate a standard collection procedure, which is longer and more expensive. This is why transferring accounts is a preventive step, not a remedial one. Once the transfer is complete, future unpaid balances are the responsibility of the new tenant. The owner should regularly check their account statements with providers to ensure no bills are still issued in their name. This vigilance is particularly important during tenant changes, where administrative delays can create a gray area of several weeks. The owner must keep a record of all transfer requests and confirmations received from providers.

Specifics of buildings and shared meters

In some buildings, particularly older ones or those with collective installations, meters are not individual. In this case, a direct named account transfer with the IEC or the water authority is not possible. The owner must then manage the allocation of fees with other co-owners or the building manager. The tenant then pays an estimated share of the fees, based on a sub-meter reading or a fixed allocation. You must verify if the building has certified sub-meters. If not, the owner must negotiate a clear billing method with the tenant. This situation is frequent in Netanya buildings constructed before recent individual metering standards. The owner must ensure that the allocation method is accepted by the tenant and documented in the lease. Otherwise, disputes over fee amounts are inevitable. To understand how to manage these complex situations, consult our article on Electricity and water: putting accounts in the tenant’s name in Israel.

The case of water heaters and equipment

Transferring accounts does not cover equipment maintenance. The doud shemesh (solar water heater) and mazgan (air conditioner) are fixed equipment. Their maintenance and replacement generally fall under the owner’s responsibility, unless stated otherwise. If a problem arises during the transfer, such as a water heater leak, it must be determined who is responsible for the repair. The tenant is responsible for normal use, and the owner for wear and tear. It is recommended to have these equipment inspected by a professional before key handover. This inspection documents the condition of the equipment and avoids disputes over the cause of a failure. Repair costs can be high, and responsibility must be clearly established. For more details on managing breakdowns and repairs, consult our article on Water heater replacement failure: tenant or owner in Netivot. This distinction between accounts and equipment is often a source of confusion for foreign owners.