Purpose of the law

Following the social protest that erupted in 2011, several attempts were made to enact the Fair Rent Act. The ‘Housing Cabinet’ was established, and bills were introduced, until in 2017 the ‘Fair Rent Law’ was incorporated and added as Article 6 of the Rent Law.
Under the law are cogent provisions that cannot be stipulated in leases unless it is in the tenant’s favor.
The purpose of the law was primarily to do good with the tenants.

Increasing certainty in the residential rental market, establishing fairer arrangements for the tenant, and ensuring a minimum standard of living for the tenant.
With a market in the background where demand is high and exceeds supply.
Opinions were divided on the effectiveness of the legislature’s intervention in the overriding principle of freedom of contract.

My humble opinion is that the amendment has helped and will continue to help, and not necessarily for the reasons underlying the amendment to the Rent Act.

If one compares the car rental market to the apartment rental market the differences are noticeable.
In the car rental market, the issues discussed are minimal; price, vehicle type, insurance type and that’s it.
The more the parties to the lease have to bargain on a smaller number of issues, the better for tenants, landlords, the state, the court, and more.

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Apartments in Israel
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Average price for a 4 room apartment in Tel Aviv
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Rise in the price index of input in residential construction from the year 1956 to 2021
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