Authored by the expert who managed and guided the team behind the Israel Property Pack
Yes, the analysis of Tel Aviv's property market is included in our pack
Tel Aviv is one of the most dynamic rental markets in the Middle East, but the combination of sky-high property prices and complex tax rules makes it a challenging place for foreign landlords to navigate.
This guide breaks down exactly what you need to know about renting out property in Tel Aviv in 2026, from realistic yield expectations to neighborhood-level insights.
We constantly update this blog post to reflect the latest data and regulatory changes in the Tel Aviv rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tel Aviv.
Insights
- Tel Aviv gross rental yields hover around 2.0% to 2.5% in early 2026, which is low by global standards but typical for a high-price, high-demand market like Israel's commercial capital.
- Foreign landlords in Tel Aviv can legally use the 10% flat tax track on gross rental income, which simplifies compliance but still requires opening a tax file with the Israel Tax Authority.
- Short-term rentals in Tel Aviv achieve roughly 44% average occupancy with a $222 nightly rate, but operating costs and licensing requirements often erode the apparent revenue advantage over long-term renting.
- A mamad (safe room) is now one of the most sought-after features by Tel Aviv tenants, reflecting post-2023 security concerns that have reshaped rental demand patterns.
- Florentin and parts of Jaffa tend to offer better yields than beachfront neighborhoods because purchase prices drop faster than rents in these areas.
- Tel Aviv landlords should budget for roughly 0.5 to 1 month of vacancy per year, even though the city has structurally high demand due to jobs, universities, and lifestyle appeal.
- The standard Tel Aviv lease is 12 months with an option to extend, and security deposits typically range from 1 to 3 months of rent under the Fair Rental Law framework.
- Net rental yields in Tel Aviv typically compress to 1.4% to 1.8% after accounting for management fees, the 10% tax track, maintenance reserves, and vacancy allowances.
Can I legally rent out a property in Tel Aviv as a foreigner right now?
Can a foreigner own-and-rent a residential property in Tel Aviv in 2026?
As of early 2026, foreigners can legally buy residential property and rent it out in Tel Aviv, provided the purchase is properly registered and all tax obligations are met.
The most common ownership structure for foreign investors in Tel Aviv is direct personal ownership registered through the Land Registry (Tabu), though some investors use Israeli companies for larger portfolios.
The main practical limitation for foreigners is not a legal ban but rather the administrative burden of setting up Israeli tax compliance, including opening a tax file and choosing between income tax tracks.
If you're not a local, you might want to read our guide to foreign property ownership in Tel Aviv.
Do I need residency to rent out in Tel Aviv right now?
In most cases, you do not need Israeli residency to rent out a residential property in Tel Aviv, as Israel taxes non-residents on Israeli-sourced rental income regardless of where they live.
However, you will need an Israeli tax identification number to comply with rental income tax rules, especially if you choose the simplified 10% tax track that many foreign landlords prefer.
While not legally required, an Israeli bank account is strongly preferred in practice because tenants and property managers in Tel Aviv typically expect to pay rent via local bank transfer.
Managing a Tel Aviv rental remotely is entirely feasible if you hire a local property manager, use a lawyer for lease matters, and have a clear system for maintenance and tenant communication.
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What rental strategy makes the most money in Tel Aviv in 2026?
Is long-term renting more profitable than short-term in Tel Aviv in 2026?
As of early 2026, short-term renting in Tel Aviv can generate higher gross revenue than long-term renting, but the gap narrows significantly once you factor in higher operating costs and compliance complexity.
A well-managed short-term rental in central Tel Aviv might gross 30% to 50% more than a comparable long-term rental annually (roughly an extra 25,000 to 40,000 ILS, or $7,000 to $11,000 USD, or 6,500 to 10,000 EUR), but expenses like cleaning, furnishing, and platform fees often consume much of that premium.
Short-term renting tends to outperform long-term renting financially in prime beachfront and central neighborhoods like Neve Tzedek, Old North, and Rothschild, where tourists and business travelers pay premium nightly rates.
What's the average gross rental yield in Tel Aviv in 2026?
As of early 2026, the average gross rental yield for residential properties in Tel Aviv is approximately 2.2% per year, which reflects the city's extremely high purchase prices relative to rents.
Most residential properties in Tel Aviv fall within a gross yield range of 2.0% to 2.5%, with very few properties exceeding 3% unless they involve unusual circumstances or higher-risk locations.
Smaller units like studios and 1-bedroom apartments tend to achieve slightly higher gross yields in Tel Aviv (around 2.2% to 2.3%) compared to larger 2-bedroom units (around 2.1%), because purchase prices scale up faster than rents for bigger apartments.
By the way, we have much more granular data about rental yields in our property pack about Tel Aviv.
What's the realistic net rental yield after costs in Tel Aviv in 2026?
As of early 2026, the realistic net rental yield for long-term rentals in Tel Aviv is approximately 1.4% to 1.8% per year for most foreign landlords who use property management.
Depending on your cost structure and tax choices, net yields in Tel Aviv can range from as low as 1.2% (high-cost setup with frequent turnover) to around 2.0% (owner-managed with minimal vacancy).
The three main cost categories that reduce gross yield to net yield in Tel Aviv are property management fees (typically 6% to 10% of rent for remote owners), the 10% flat tax on gross rental income that most foreigners choose for simplicity, and a maintenance reserve that becomes essential given the age of many Tel Aviv buildings.
You might want to check our latest analysis about gross and net rental yields in Tel Aviv.
What monthly rent can I get in Tel Aviv in 2026?
As of early 2026, typical monthly rents in Tel Aviv are approximately 5,500 ILS ($1,500 USD / 1,400 EUR) for a studio, 7,000 ILS ($1,900 USD / 1,800 EUR) for a 1-bedroom, and 8,500 ILS ($2,300 USD / 2,200 EUR) for a 2-bedroom apartment.
A realistic entry-level rent for a decent studio in Tel Aviv ranges from 5,000 to 5,700 ILS per month (roughly $1,350 to $1,550 USD or 1,250 to 1,450 EUR), depending on location and building condition.
For a typical 1-bedroom apartment in Tel Aviv, you can expect mid-range monthly rents between 6,700 and 7,300 ILS ($1,800 to $2,000 USD or 1,700 to 1,850 EUR), with prime locations pushing toward the higher end.
A standard 2-bedroom apartment in Tel Aviv commands mid-to-high rents of 8,200 to 9,000 ILS per month ($2,200 to $2,450 USD or 2,100 to 2,300 EUR), with newer buildings and central locations exceeding these figures.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Tel Aviv.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Israel versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Tel Aviv in 2026?
What's the total "all-in" monthly cost to hold a rental in Tel Aviv in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Tel Aviv (excluding mortgage payments) is approximately 1,000 to 1,500 ILS ($270 to $400 USD / 250 to 380 EUR) for a studio and 1,500 to 2,100 ILS ($400 to $570 USD / 380 to 530 EUR) for a 2-bedroom.
Most landlords in Tel Aviv experience monthly holding costs in the range of 900 to 2,100 ILS ($245 to $570 USD / 230 to 530 EUR), depending on property size, management setup, and how aggressively they reserve for repairs.
Property management fees tend to be the largest single cost category for foreign landlords in Tel Aviv, typically consuming 6% to 10% of monthly rent, followed by the 10% rental income tax and then maintenance reserves.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Tel Aviv.
What's the typical vacancy rate in Tel Aviv in 2026?
As of early 2026, the typical vacancy rate for long-term rental properties in Tel Aviv is approximately 4% to 8%, which translates to roughly 2 to 4 weeks of vacancy per year for a well-priced unit.
Landlords in Tel Aviv should realistically budget for 0.5 to 1 month of vacancy per year because even in a high-demand market, turnover friction like tenant transitions, minor repairs, and lease negotiations creates gaps.
The main factor that causes vacancy rates to vary across Tel Aviv neighborhoods is proximity to employment centers and public transit, with areas near the light rail, Rothschild corridor, and tech hubs experiencing faster tenant turnover but also faster re-letting.
Summer months (June through August) typically see the highest tenant turnover and vacancy in Tel Aviv due to academic year cycles, lease renewal timing, and the tendency for families to relocate before the school year starts in September.
We have a whole part covering the best rental strategies in our pack about buying a property in Tel Aviv.
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Where do rentals perform best in Tel Aviv in 2026?
Which neighborhoods have the highest long-term demand in Tel Aviv in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Tel Aviv are Lev Ha'Ir (City Center around Dizengoff and Shenkin), Old North (HaTzafon HaYashan near Ibn Gabirol), and Florentin, all of which benefit from walkability, nightlife, and proximity to employment.
Families looking for long-term rentals in Tel Aviv tend to concentrate in Ramat Aviv (near Tel Aviv University and good schools), Bavli (quieter residential feel), and Afeka (more suburban atmosphere with parks).
Students in Tel Aviv gravitate toward Ramat Aviv for proximity to Tel Aviv University, Florentin for affordability and social life, and parts of City Center when budgets allow.
Expats and international professionals typically prefer Neve Tzedek (premium lifestyle), Old North near the beach (Gordon-Frishman corridor), and the Rothschild area for its cafes, coworking spaces, and walkable urbanism.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tel Aviv.
Which neighborhoods have the best yield in Tel Aviv in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Tel Aviv are Florentin (often 0.2% to 0.3% above city average), Shapira (more price-sensitive area with relatively stable rents), and select pockets of Jaffa where micro-location dramatically affects returns.
These higher-yielding Tel Aviv neighborhoods typically achieve gross rental yields in the range of 2.3% to 2.8%, compared to the citywide average of around 2.2%.
The main characteristic that allows these neighborhoods to achieve higher yields is that purchase prices have not inflated as dramatically as in beachfront or premium areas, while rental demand from young professionals and artists keeps rents relatively firm.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Tel Aviv.
Where do tenants pay the highest rents in Tel Aviv in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Tel Aviv are Neve Tzedek, Old North near the beach, and Park Tzameret, where premium apartments can command 12,000 to 20,000 ILS per month ($3,250 to $5,400 USD / 3,000 to 5,100 EUR).
In these premium Tel Aviv neighborhoods, a standard 2-bedroom apartment typically rents for 10,000 to 15,000 ILS per month ($2,700 to $4,100 USD / 2,500 to 3,800 EUR), while luxury units can exceed 20,000 ILS.
The main characteristic that allows these neighborhoods to command the highest rents is the combination of sea proximity, architectural charm (especially in Neve Tzedek), and status signaling that appeals to high-income tenants willing to pay for lifestyle.
The typical tenant profile in these highest-rent Tel Aviv neighborhoods includes senior tech executives, foreign diplomats, successful entrepreneurs, and affluent expats on corporate relocation packages who prioritize location and aesthetics over value.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Israel. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Tel Aviv in 2026?
What features increase rent the most in Tel Aviv in 2026?
As of early 2026, the three property features that increase monthly rent the most in Tel Aviv are a mamad (safe room) which has become essential for security-conscious tenants, an elevator in older buildings where walk-ups are common, and dedicated parking which is scarce and expensive in central areas.
A mamad (reinforced safe room) can add an estimated 5% to 10% rent premium in Tel Aviv, as post-2023 security concerns have made this feature a decisive factor for many tenants, especially families and expats.
One commonly overrated feature that Tel Aviv landlords invest in but tenants don't pay much extra for is high-end kitchen appliances, because most tenants prioritize location and outdoor space over professional-grade cooking equipment.
One affordable upgrade that provides strong return on investment for Tel Aviv landlords is installing or upgrading air conditioning, since summer cooling is non-negotiable and a modern, efficient system can justify a modest rent increase while reducing tenant complaints.
Do furnished rentals rent faster in Tel Aviv in 2026?
As of early 2026, furnished apartments in Tel Aviv typically rent 1 to 3 weeks faster than unfurnished equivalents, particularly when targeting expats, corporate relocations, or tenants seeking short-to-medium term arrangements.
Furnished rentals in Tel Aviv can command a rent premium of approximately 10% to 20% over unfurnished units, though this premium is partially offset by higher wear-and-tear costs and the need to update furniture periodically.
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How regulated is long-term renting in Tel Aviv right now?
Can I freely set rent prices in Tel Aviv right now?
In early 2026, landlords in Tel Aviv have substantial freedom to set initial rent prices based on market conditions, as there is no rent control or price ceiling on new leases.
However, the Fair Rental Law in Israel establishes minimum habitability standards and landlord obligations, and while it does not cap rent increases during a tenancy, it encourages clearer lease terms that can create practical constraints on arbitrary mid-lease changes.
What's the standard lease length in Tel Aviv right now?
The standard lease length for residential rentals in Tel Aviv is 12 months, typically with an option to extend for an additional 12 months under pre-agreed terms.
Landlords in Tel Aviv can legally require a security deposit of 1 to 3 months of rent (roughly 5,500 to 25,500 ILS, or $1,500 to $6,900 USD, or 1,400 to 6,500 EUR depending on apartment size), with the Fair Rental framework discouraging excessive guarantees.
At the end of a tenancy in Tel Aviv, landlords must return the security deposit within a reasonable timeframe after deducting any legitimate damages, and the recommended lease templates published by the municipality help clarify what deductions are acceptable.
We made this infographic to show you how property prices in Israel compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Tel Aviv in 2026?
Is Airbnb legal in Tel Aviv right now?
In early 2026, Airbnb-style short-term rentals operate at scale in Tel Aviv, but the legal status depends on how the property is operated and whether it is treated as a business activity requiring municipal licensing.
Tel Aviv has a municipal business licensing system that applies to hospitality and short-term rental operations, and hosts operating frequently or professionally may need to obtain a license through the city's online licensing portal.
There is no single, clearly published annual night limit for Tel Aviv short-term rentals as of early 2026, but enforcement tends to focus on nuisance complaints, building rule violations, and tax compliance rather than a headline cap.
The most common consequences for operating a non-compliant short-term rental in Tel Aviv include fines from the municipality, pressure from building committees (va'ad bayit), and potential tax penalties if rental income is not properly reported.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Tel Aviv.
What's the average short-term occupancy in Tel Aviv in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Tel Aviv is approximately 44%, meaning a typical listing is booked for roughly 160 nights per year.
Most short-term rentals in Tel Aviv experience occupancy rates ranging from 30% (poorly optimized or less desirable locations) to 60% or higher (prime beachfront or professionally managed listings).
The highest occupancy months for Tel Aviv short-term rentals are typically April through June and September through November, when pleasant weather, Jewish holidays, and business travel create peak demand.
The lowest occupancy months tend to be January through February (post-holiday slowdown and cooler weather) and parts of July through August when extreme heat and local vacation patterns reduce tourist inflow.
Finally, please note that you can find much more granular data about this topic in our property pack about Tel Aviv.
What's the average nightly rate in Tel Aviv in 2026?
As of early 2026, the average nightly rate for short-term rentals in Tel Aviv is approximately 820 ILS ($222 USD / 210 EUR), though rates vary significantly by property type and location.
Most short-term rental listings in Tel Aviv fall within a nightly rate range of 400 to 1,500 ILS ($110 to $400 USD / 100 to 380 EUR), with budget studios at the low end and premium beachfront apartments at the high end.
During peak season (spring holidays and autumn), Tel Aviv nightly rates typically run 20% to 40% higher than off-season rates, meaning a 150 to 300 ILS ($40 to $80 USD / 38 to 76 EUR) difference per night for a typical listing.
Is short-term rental supply saturated in Tel Aviv in 2026?
As of early 2026, the Tel Aviv short-term rental market is best described as competitive rather than saturated, with established supply but still enough demand to support well-managed properties.
The number of active short-term rental listings in Tel Aviv has remained relatively stable over the past year, with modest growth in central areas offset by some listings converting back to long-term rentals due to regulatory and cost pressures.
The most oversaturated neighborhoods for short-term rentals in Tel Aviv are the beachfront blocks of Old North, Neve Tzedek, and parts of Florentin, where high listing density creates intense competition for bookings.
Neighborhoods that still have room for new short-term rental supply include parts of Jaffa (especially areas with improving infrastructure), Sarona area, and some pockets near the new light rail stations where tourist access is improving.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tel Aviv, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Israel Central Bureau of Statistics (CBS) - Rent Data | Israel's official statistics agency and the standard public rent benchmark. | We used it to anchor realistic monthly rents in Tel Aviv by apartment size. We then converted Israeli "room" categories into bedroom formats that international investors understand. |
| Israel Central Bureau of Statistics (CBS) - Price Data | The official transaction-based pricing series used in Israel's housing statistics. | We used it to anchor realistic purchase price levels in Tel Aviv. We combined it with CBS rent data to calculate gross rental yields. |
| Bank of Israel - Housing Market Report 2024 | The central bank is a top-tier source for market structure and housing risk context. | We used it to understand why rent and price dynamics behave the way they do. We also used it to validate investor activity patterns in Tel Aviv. |
| Israel Tax Authority - Rental Income Guide | The government's official guidance on how rental income is taxed for individuals. | We used it to explain how landlords can structure rental income taxation legally. We reflected the 10% tax track in our net yield calculations. |
| Israel Tax Authority - Form 3302 Service | The official online process page for the 10% rental tax track registration. | We used it to show what foreign landlords actually do to comply with tax rules. We included it as a practical checklist item for remote ownership. |
| Ministry of Justice - Land Registry (Tabu) | The official government service for verifying legal property ownership. | We used it to explain the ownership verification process that matters for confident renting. We highlighted that this is a government process, not a broker promise. |
| Tel Aviv Municipality - Recommended Lease Agreement | The city's official guidance for residents and landlords on rental practices. | We used it to describe what a normal long-term lease looks like in Tel Aviv. We grounded deposit and contract expectations on this official resource. |
| Knesset - Fair Rental Law Press Release | A primary-source legislative institution explaining what the law requires. | We used it to anchor the existence and intent of the Fair Rental Law. We translated legal requirements into practical landlord obligations. |
| Tel Aviv Municipality - Business Licensing System | The city's official entry point for business licensing, including short-term rentals. | We used it to show that licensing in Tel Aviv is a real municipal process. We anchored short-term rental compliance discussions on this official source. |
| AirDNA - Tel Aviv Market Overview | A widely used, methodology-driven short-term rental data provider. | We used it to estimate occupancy and nightly rate economics for short-term renting. We compared its implied revenue to long-term rents to evaluate strategy options. |
| Inside Airbnb - Data Portal | A transparent, research-oriented dataset used in academic and policy analyses. | We used it as a second source to check supply and saturation discussions. We treat it as market mapping rather than precise revenue measurement. |
| CBRE Israel - Real Estate Market Outlook | A major global real estate consultancy with established research standards. | We used it for professional market context and demand drivers affecting rentals. We did not use it for core rent or price numbers, which come from CBS. |
We have made this infographic to give you a quick and clear snapshot of the property market in Israel. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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