Lease Agreements · Legal briefing
Lease Renewal Options & Rent Disputes
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
After investing in the premises, you exercise a one-year option. The landlord agrees to renewal only at a substantial rent increase.
The legal position
The option’s wording is central. Where section 25L applies, a landlord’s renewal option requires at least 90 days’ notice and pre-agreed terms; a tenant’s option requires at least 60 days’ notice. These periods do not govern every lease. An open price clause can create interpretation or certainty disputes without necessarily invalidating the entire agreement. There is no general statutory 5% increase ceiling. Official source 1
Your next step
Diary the applicable contractual and statutory dates and send documented notice. Confirm rent, duration and security before renewal. If the option is disputed, review the wording and correspondence before committing elsewhere.