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Rental guide − Tel Aviv Rental trends for Relocation

Expatriate rentals are in high demand in Tel Aviv, which has led to rent increases. However, elevated levels construction are taking place in the city at present, which will hopefully begin to stabilise the market in the near future.

 

Tel-aviv City rental costs

• Most properties in Tel Aviv are rented unfurnished. Expect to pay 10−25% more for furnished accommodation in Tel Aviv.

• Service charges are sometimes included in the rent, and when not included, they typically amount to 10−20% of monthly rent for telaviv apartments.

• The tenant is responsible for paying the local council tax called Arnona. These costs vary according to several factors.

• Security costs are usually included in the rent or service charges.

• Utilities are not usually included in tel-aviv rental prices.

• All rents are monthly and in ILS.

The tel-aviv city centre is the most exclusive district for apartments, while Kfar Shmaryahu is the most expensive for houses.

Ra'anana and Herzliya Pituach offer some of the more economical options for expatriates in Tel Aviv.

Telaviv City centre rentals

The city centre of Tel Aviv is located around the Dizengoff Square. The city centre is the main business centre of Tel Aviv. It offers an excellent selection of amenities, including a wide range of shops, restaurants, cafes and bars. Gyms and cinemas can be found here, and Dizengoff Centre, Israel's first mall when it was opened, is an enormous shopping centre catering to shoppers' desires with over 400 shops. The city centre is home to many galleries and museums, and Meir Park in the southern part of the district offers three hectares of greenery for an escape from the busy streets. The majority of the city's embassies can be found within and around the area, mainly towards the Yarkon River. The Tel Aviv Marina is located just to the north−west of the district.

Tel-aviv Public transport

Public transport within the city centre and to other parts of the city is good, although it is worth noting that traffic jams are likely throughout the day and finding a parking space can be problematic.

Tel-Aviv Housing styles

Accommodation in the city centre of telaviv consists predominantly of apartments. Availability is limited.

Tel-aviv Rental costs

All rents are monthly and in ILS. All rental costs refer to unfurnished properties.

 

Kfar Shmaryahu rentals

Kfar Shmaryahu is a northern district, located between Herzliya Pituach and Ra'anana, approximately 13 km north of the city centre.

Kfar Shmaryahu is often ranked as the best location to live in all of Israel, and it is popular among high−ranking diplomats and foreign executives and dubbed as the Beverly Hills of Tel Aviv. However, the area is considered quite traditional and

 old−money , and many of the younger generations do not regard it as an equally desirable and sought−after destination. Kfar Shmaryahu is largely residential, and a trip to the neighbouring Herzliya Pituach is required for most amenities. The district boasts tree−lined streets and small parks, and the Apollonia National Park can be found nearby, just to the north of Herzliya Pituach.

Public transport

Driving to the city centre takes approximately 20−30 minutes, and the same journey takes 30−50 minutes by bus.

Kfar Shmaryahu Housing styles

Accommodation consists of houses. Availability is limited.

Kfar Shmaryahu Rental costs

All rents are monthly and in ILS. All rental costs refer to unfurnished properties.

 

Ramat Aviv rentals

Ramat Aviv is located on the northern side of the Yarkon River, between Ayalon Highway and the Dov Hoz Airport, which mainly deals with domestic flights.

Ramat Aviv is a popular district among expatriates in Tel Aviv. It has a good selection of shops and restaurants, and the Ramat Aviv Mall offers roughly 140 shops, including several luxury boutiques, such as Louis Vuitton and Marc Jacobs. Ramat Aviv has ample greenery, with several parks dotted throughout the district and along the riverbank. The world−class Tel Aviv University is located in the area, enhancing the district's vibrant and youthful culture. Ramat Aviv is particularly popular among expatriate families, given its residential character and good access to the city centre.

Public transport

Driving to the city centre takes approximately 10−20 minutes, and the same journey takes 35−40 minutes by bus.

Ramat Aviv Housing styles

Accommodation consists of both houses and apartments. Availability is limited.

Ramat Aviv Rental costs

All rents are monthly and in ILS. All rental costs refer to unfurnished properties.

 

Ra'anana rentals

Ra'anana is located to the north−east of Tel Aviv, approximately 18 km from the city centre and just to the east of Kfar Shmaryahu.

Ra'anana is home to a large expatriate and immigrant population, mainly from the US, UK, France, Argentina and South Africa. The norther part of the district hosts a large high−tech industrial park, home to numerous global giants such as Hewlett−Packard and Texas Instruments, as well as smaller start−up companies. Ahuza Street is the district's main thoroughfare, and many shops and restaurants can be found along it. There are several parks in the area, the largest one being Ra'anana Park in the western part of the district, offering relaxation in the form of walking and cycling paths, sports fields, a petting zoo and a clover−shaped lake. Ra'anana is particularly favoured by expatriate families thanks to its greenery and tranquillity, as well as access to good schools.

Public transport

Driving to the city centre takes approximately 30−40 minutes, and the same trip takes about 35−45 minutes by bus or 10−15 minutes by train.

Ra'anana  Housing styles

Accommodation consists of both houses and apartments. Availability of houses is reasonable, but apartments can be much harder to find.

Ra'anana Rental costs

All rents are monthly and in ILS. All rental costs refer to unfurnished properties.

 

Herzliya Pituach rentals

Herzliya Pituach is a district approximately 12 km north of the city centre, immediately to the west of Kfar Shmaryahu.

Herzliya Pituach is an affluent beachfront district. It is well−known for its luxury hotels and restaurants, and the Ritz−Carlton of Tel Aviv can be found at the Marina. The availability of amenities is reasonable, although a trip to the city centre is necessary for a more varied selection. The district is home to numerous high−tech companies. There are several parks dotted around the area, including Herzliya Park in the east, which offers walking and cycling paths, picnic sites and a playground. Some of Israel's finest beaches are located in Herzliya Pituach. Apollonia National Park in the north of the district contains the remains of a Crusader fortress, which dates back to the 13th century, whilst the Roman settlements in the area are around 3000 years old.

Public transport

Driving to the city centre takes approximately 20−30 minutes. The same journey takes about 25−35 minutes by bus, or 10−15 minutes by train.

Ra'anana  Housing styles

Accommodation consists of both houses and apartments. Availability of houses is reasonable, but apartments can be harder to find.

Ra'anana  Rental costs

All rents are monthly and in ILS. All rental costs refer to unfurnished properties.

 

Additional districts

Expatriates in Tel Aviv may wish to consider living in Jaffa or Ramat Gan. Both are located near the city centre, with prices similar to the city centre and Ramat Aviv.

 

Tel-aviv Schools for expatriate 

Children's education and welfare are naturally prime concerns for relocating families; disruption to children's education being a primary source of worry, as well as the loss of friends. The proximity of an appropriate school is therefore an important consideration when selecting an area in which to live.

The French school and Tabeetha School are located close to the city centre, and the American school is to the north of Ra'anana.

Following is a list of suitable schools for expatriate children in Tel Aviv. It is not intended as an exhaustive list.

College Francais Marc Chagall

24 Rue Chelouche, PO Box 50049, Tel Aviv 61500 (www.college−chagall.tk)

Tabeetha School

21 Yefet Street, PO Box 8170, Jaffa 61081 (www.tabeethaschool.org)

Treehouse International School

Ramot Yam 55, Herzliya Pituah (www.treehouse.co.il)

Walworth Barbour American International School

65 Hashomron Street, PO Box 484, Even Yehuda 40500 (www.wbais.net)

 

Tel-aviv Sports and social clubs

Recreational facilities are an important factor when trying to find suitable accommodation. Membership of a sports or country club is an ideal opportunity for employees to be introduced into an expatriate community. In countries with a small expatriate community and, perhaps, limited recreational facilities, much of an expatriate's social life can revolve around a sports club.

Following is a list of clubs and cultural organisations suitable for expatriates. It is not intended as an exhaustive list of such amenities in Tel Aviv.

Azorei Hen Country Club

21 Uri Tsvi Grinberg, 69379 Tel Aviv (www.country−hen.co.il)

Country Club Dekel

69 Kosovski Street, Shikun Bavli, Tel Aviv (www.countrydekel.co.il)

Holmes Place Azrieli

Azrieli Center, Third Floor, Tel Aviv (www.holmesplace.co.il)

Zeus Sport

Ramat Gan , Tel Aviv (www.zeusport.co.il)

Estate agents and relocation agents in tel aviv

branches in Tel Aviv:

My−TelAviv Real Estate

36 Ben−Yehuda, Tel Aviv (mytelaviv−realestate.com).

 

Short−term accommodation in Tel-aviv

Newly arriving expatriates or those on short−term assignments may elect to live in hotels or serviced accommodation, in preference to fixed contract (long−term) accommodation. Serviced apartments generally offer expatriates a cheaper and more suitable alternative to staying in hotels. However, it is often possible to negotiate long−term rates with hotels, and expatriates may favour the use of a suite with a kitchenette.

Serviced accommodation will have a kitchen and living area, and is inclusive of all furnishings, including televisions, linens and crockery. In many cases a limited maid service is available.

In Tel Aviv, a one bedroom serviced apartment usually costs between USD 150 and USD 350 per night, with a typical cost of USD 250. Alternatively a two bedroom serviced apartment costs between USD 200 and USD 450, with a typical cost of USD 300 per night.

These are nightly rates assuming a stay of one month, and include taxes and service charges. Please note that a city tax may be charged in addition to these rates. These prices are given as guidelines only and will vary depending on location, time of year and length of stay.

 

Serviced apartments

My−TelAviv Real Estate

36 Ben−Yehuda, Tel Aviv (mytelaviv−realestate.com).

 

Additional rental costs in Tel aviv

 

Utilities, taxes and service charges

Utilities are typically not included in the rent, and the tenant is responsible for their payment separately. Some landlords insist on the tenant providing an open cheque to cover any unpaid utilities at the end of the contract.

 

Electricity

The domestic supply is 220V AC, 50Hz. Round two−pin plugs (Type C) are in use and two−pin flat plugs with grounding pin (Type H) can also be found. Adapters can be purchased locally. The electricity supply is good and few expatriates recommend the use of voltage stabilisers. Many houses have individual solar powered water−heating systems.

What Plug (www.whatplug.net). Information regarding various country−specific voltage types and electrical fittings.

 

Gas

Cylinders of gas are often used for cooking and heating.

 

Water

The majority of expatriates report that the water is not drinkable and prefer to drink bottled water. The water supply is reliable.

 

Telephone

The telephone service is reported to be reliable. It takes up to one week to have a telephone line installed and there is a one off connection fee for this.

 

Housing taxes Property and municipal taxes

The tenant is responsible for paying the council tax, locally known as Arnona. The costs depend on the location and the size of the property, and they are likely to vary more than once a year. It is paid every two months.

 

Lease registration and stamp duty

The tenant is not responsible for lease registration.

 

Withholding tax and VAT

The tenant is not responsible for withholding taxes or VAT on residential rentals. Corporate leases are liable to pay VAT on rentals.

 

Service charges

Service charges are sometimes included in the rent. Where not included, they typically amount to10−20% of monthly rent. They usually only apply for apartments and not for houses.

 

Furniture and furnishings

The majority of properties in Tel Aviv are rented unfurnished. Furnished properties are approximately 10−25% more expensive than unfurnished ones. There is a large furniture aftermarket among expatriates who are leaving Tel Aviv and want to sell their furniture on departure.

Purchasing a set of two sofas, two armchairs, one dining table with four chairs, one double−bed and one wardrobe costs approximately ILS 25 000.

 

Furniture suppliers

Companies that have branches in many major cities in Israel include:

Tollmans

(www.tollmans.co.il).

Netanya

Ikea Netanya

1 Giborei Israel Street, Poleg Interchange, Netanya (www.ikea.co.il).

Tel Aviv

B&B Italia

3 Hata'arucha Street, 63509 Tel Aviv (www.bebitalia.com).

IKEA

Branches available all over Tel Aviv (www.ikea.co.il).

Siam Interior Design

Branches available all over Tel Aviv (www.siamdesign.co.il).

Simply Wood

57 Herzl Street, Tel Aviv (www.simply−wood.co.il).

 

Leasing arrangements in Tel aviv

Tenancy agreement

Lease agreements typically last for one year. They are usually paid in ILS, although sometimes landlords may accept payment in USD or EUR. Rent is typically paid by providing twelve post−dated cheques, but monthly bank transfer is also commonly acceptable.

Break clauses may be negotiated into contracts, depending on the landlord. Three months' notice is generally required. The tenant may stand to lose the deposit if the clause is invoked.

Landlords do not have a preference for corporate or personal leases. Companies are considered as a safer source of rental income, but individuals are thought to be easier to deal with if problems arise.

 

Deposit and key money

Deposits are typically 2−3 months' rent.

 

Estate agent brokerage fees

The tenant typically pays one month's rent plus VAT to the estate agency.

 

Rent reviews

Rents are usually reviewed at the end of the contract.

 

Housing policy

Long−term rental in tel aviv

Financial assistance for employee housing forms a significant part of most mobility packages, with over 90% of employers making some provision. A number of factors may dictate the level of support employers provide. Companies with smaller expatriate populations tend to have a more flexible approach to the provision of accommodation, with a budget determined on a case−by−case basis, while larger companies often prefer a more structured approach that varies by family size and/or seniority per location. The length of assignment may also influence how the benefit is provided and prompt some consideration of how the property in the home country is to be managed.

 

Host housing policy

Options most commonly used by employers to incorporate host country accommodation into the expatriate's salary package include:

• Provision of free accommodation − in a recent ECA survey, 62% of companies aimed to provide free accommodation, either by paying an allowance or by meeting the full agreed cost of accommodation directly.

• Provision of a housing allowance − rather than meeting the cost of housing directly, the employer may elect to provide an allowance to compensate the employee for their accommodation expenses. This allowance may cover all or only part of the cost of local housing. The provision of a cash allowance has the advantage of giving an assignee a greater degree of autonomy in choosing property, but these may be taxed unfavourably, compared to paying for accommodation directly as a benefit−in−kind. Specified allowances have the added advantage of being easier to structure to reflect differences in seniority and/or family size.

• Provision of subsidised host country accommodation − this policy option, used by 29% of respondents to the same survey, requires the employee to make a financial contribution. The level of contribution is sometimes determined on the basis of home country housing costs, by the application of a housing norm deduction. Alternatively, the employee contribution may be applied using the host country as a reference, usually by providing a capped housing allowance, or by deducting a specified proportion of the employee's rent or salary from the allowance.

 

Home housing policy

Only around 10% of companies have a policy for assisting their long−term assignees with housing in the home country. If the home property remains empty employers may choose to provide an unoccupied housing allowance. If the home property is sold, managers can exercise the option to compensate for any loss made on the sale of the property (up to a pre−determined maximum), or reimburse fees associated with the property sale.

 

Additional costs

The costs of furnishing property, utilities payments, and property service charges can significantly add to the expense of renting accommodation. In many of the world's property markets, accommodation is typically leased unfurnished. Where furnished accommodation is available, about half of employers typically pay the additional costs associated with these properties. Many employers vary the level of provision for furnishings depending on both the length of the assignment and family status. The majority of employers cover the cost of service charges, while many different approaches to utilities costs are evident. Half of employers have a set policy for all mobile assignees regarding utilities costs, but employers differ in specifying which items are covered, and whether costs are met directly or via reimbursement to the employee.

 

Short−term tel-aviv  

Assignments lasting less than one year require the consideration of factors different to those relating to longer postings. Many landlords look unfavourably on lease agreements lasting less than 12 months. The negotiation of these shorter leases may therefore increase the administrative burden on mobility managers.

Most employers provide free accommodation for short−term assignments. Depending on the length of assignment this accommodation may be in a hotel, or in a serviced apartment. Average rents for serviced apartments are often significantly greater than for unserviced accommodation, and ceilings to financial support are common to nearly three quarters of employers. The fact that serviced accommodation is usually restricted to apartments can sometimes lead to difficulties when individuals are accompanied by their families.

                                                                                                                                                                                                   Sources : ECA international

 

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