The charges
What an apartment in Israel costs
Arnona, vaad bayit, insurance, water, electricity, upkeep. Here are the lines that fall due every year, and who pays them depending on whether the property is let or empty.
The three lines
Three items that fall due whatever happens
An apartment in Israel costs money even when it earns none. Three items always come back: arnona, the municipal tax, calculated on floor area and zone, vaad bayit, the building charges, and insurance.
The first two follow the apartment, not the person. An arnona debt left by a previous occupant turns up attached to the property on the day of a sale, and that is usually when it is discovered.
Who pays what
The split between owner and tenant
Nothing is automatic: the lease does the splitting. On a residential letting, the usual arrangement is as follows.
- Arnona. The tenant’s during the lease, with the account transferred into their name at the municipality. It returns to the owner as soon as the property is empty.
- Ordinary vaad bayit. The tenant’s: this is the day to day upkeep of the building, lift, cleaning, lighting, garden.
- Works voted by the building. The owner’s. Rendering, waterproofing, replacing a lift: none of that is asked of the tenant.
- Water and electricity. The tenant’s, with the meters transferred into their name, which saves chasing a bill two years later.
- Insurance. The owner insures the structure, the tenant insures contents and liability. The tenant’s certificate is checked, not assumed.
- Upkeep. Day to day to the tenant, structural to the owner: concealed plumbing, terrace waterproofing, water heater.
The worst case
The empty apartment, the one that costs most
An empty property earns nothing and keeps paying: arnona returns to the owner, so does vaad bayit, the insurance runs on, and the water meter ticks at its minimum. Post piles up at the door and tells everyone that nobody comes.
It is the most common situation among owners who live far away, and it is the one where a few months of vacancy cost more than a year of management.
Our part
What we do
We transfer the accounts into the tenant’s name on entry and back into yours on exit. We follow the vaad bayit demands, we challenge what should be challenged, and we tell you about a works vote before it is called in.
When a property comes to us after a vacancy or an inheritance, we start by getting the state of the debts from the municipality and the vaad bayit. It is rarely pleasant, but it is always cheaper than finding out at the sale.
Good to know
Frequently asked questions about charges
Who pays arnona, the owner or the tenant?
The tenant during the lease, the owner as soon as the property is empty. The account is transferred at the municipality into the occupant’s name, and it is that transfer which prevents unpleasant surprises.
Does the tenant pay for building works?
No. Ordinary vaad bayit charges are theirs, but works voted by the building stay with the owner.
Does an arnona debt follow the property or the person?
It is attached to the property. That is why it is checked before buying, and before taking over a flat that has stood empty.
Should an empty apartment be insured?
Yes, and that is where it matters most: a water leak in an unoccupied flat is found late, and the damage has had time to spread.
Can a vaad bayit increase be challenged?
Yes, depending on the decision and how it was voted. But you have to know about it, which assumes somebody reads the notices.
Take stock of your charges
Tell us where the property is. We will get the real state of the arnona and vaad bayit debts before any decision.