Tips for Finding Reliable Tenants and Screening Problematic Ones

Investing in real estate in Israel can be highly rewarding, but choosing the right tenant is essential for protecting your investment and ensuring stable long-term returns.

For investors—especially foreign residents—careful tenant screening can prevent costly and time-consuming eviction processes, loss of rental income, and property damage.

While Israel has a legal framework for eviction proceedings, these cases often involve lengthy court processes and significant expenses. That’s why thorough upfront screening is far preferable to dealing with problems after a tenant has moved in.

Based on nearly 30 years of experience managing and renting real estate particularly for foreign clients I am sharing you simple tips to help you find reliable tenants and avoid common mistakes.

How to Identify a Good Tenant

A good tenant understands the responsibilities of renting, demonstrates financial stability, and respects the lease agreement.

To find the right tenant, request full transparency: pay stubs, references from previous landlords, and information about their employment. Often, small details during a phone call or initial meeting can save you a great deal of trouble later.

Warning Signs: Spotting Problematic Tenants Before Signing

Do not be fooled by a tenant who seems “nice.” Pay attention to both, Look at the numbers and the hard facts and how the tenan’s behavior:

1. Suspicious financial behavior: “I don’t have checks”

Although we live in a digital age, checks remain a powerful legal tool in Israel. It is easier to collect a bounced check through the Enforcement Authority than to pursue a long civil lawsuit. Tenants claiming they have no checks may face banking restrictions. Similarly, a postal bank account is sometimes often used by people who have been refused by commercial banks due to problematic financial behavior.

2. No credit line or using only a direct debit card

Ask to see a bank statement. An account without a credit line or one that relies solely on a direct debit card may indicate that the bank does not trust the tenant’s repayment ability. If the bank doesn’t trust them, why should you?

3. Employment instability and financial mismatch

Tenants “between jobs” can also be a risk to your cash flow.

According to Israel’s banking regulator guidelines, rent should not exceed one-third of disposable income. therfore, make sure rent does not exceed one-third of their income.

(For example, a family earning 14,000 NIS per month and paying 7,000 NIS in rent will likely struggle to cover living costs.)

4. Avoiding guarantors

Tenants requesting the keys before providing guarantors can create serious problems. Once a tenant moves in, eviction requires a court process. Similarly, tenants claiming they “don’t like to ask favors” and therefore have no guarantors often know that no one of their acquaintances would agree to back their obligations.

5. Verifying guarantors

Check the guarantors’ financial capacity, ensure they understand their responsibilities, and have them sign before a lawyer or notary to prevent claims of forgery.

6. Tenant who doesn’t read the lease

While it may seem ideal to have a tenant who does not argue, this can actually be a warning sign. Responsible tenants review each clause and ask questions. Someone who signs without reading may have no intention of fulfilling the lease.

7. Well-drafted lease

A comprehensive lease protects your interests and should cover almost every scenario: payment terms, maintenance, eviction, insurance, and guarantors. Even minor wording changes can significantly affect your legal rights.

8. Thorough background checks

Credit checks (BDI), legal history verification, and identity confirmation ensure that the tenant is a real person with no outstanding debts or prior eviction cases.

When to Consult a Lawyer

For foreign residents, a lawyer acts as your “eyes and shield” on the ground.

A real estate lawyer can draft a fair, detailed lease and conduct checks that you cannot perform remotely. They can evaluate prospective tenants personally, perform credit checks (BDI), verify guarantors, screen tenants, and review their legal and financial history.

Investing in legal advice at the contract stage is a form of “insurance.” The cost of consultation is minor compared to the risk of months without rent, court expenses for eviction, and repair costs for property damage.

Conclusion

Spend time carefully checking tenants and consulting professional legal advisors. It is better for a property to remain vacant for a short period than to be rented to the wrong tenant.