Understanding Shared Building Expenses and Collection in Israel

Israeli property law outlines a default method for dividing shared building expenses: each apartment owner contributes based on their floor space relative to the total floor space of all apartments in the building. For instance, a 120-square-meter apartment in a building with 600 square meters of total apartment space would be responsible for one-fifth of the costs. However, a significant provision in the law allows the building's bylaws, or 'takanon,' to stipulate a different contribution ratio. This exception is why many buildings in Israel opt for equal payments from each apartment.

Both methods, proportional to space or equal, are legally valid, with the choice determined by the building's registered bylaws or, in their absence, the standard bylaws provided by law. A registered 'takanon' can establish equal division, assign specific areas to certain apartments, and create special arrangements for the basement or roof, overriding the default space-based calculation. Monthly payments typically cover cleaning, gardening, common area electricity, elevator maintenance, property insurance, and sometimes management company fees. A management company charging NIS 850 might allocate about NIS 650 for routine maintenance and NIS 200 for an upgrade budget.

Specific expenses have different allocation rules. Routine costs like cleaning and lighting are usually divided by floor space unless the bylaws state otherwise. Elevator operation and maintenance are shared by all owners, including those on the ground floor. However, the installation cost of a new elevator in an existing building exempts ground-floor owners, though they still contribute to its ongoing operation and maintenance. The cost of operating a Shabbat elevator is borne only by those who requested it, divided by their floor space.

In a rented apartment, the tenant typically covers routine maintenance and building committee fees, while the landlord is responsible for major renovations like lobby upgrades, elevator replacement, or roof waterproofing. The distinction depends on the nature of the expense. The general assembly of apartment owners approves the budget and payment schedules, with meeting minutes serving as crucial evidence for the building's representative committee.

To ensure regular collection, the committee should establish a fixed monthly payment date and a separate bank account for building funds. If a resident stops paying, the committee can issue a warning letter and then file a claim with the registrar of real estate, whose decisions carry the weight of a Magistrate's Court judgment for enforcement purposes. A tenant may request access to the committee's documents. Refusal to pay is not legally permissible and stems from property ownership, even if an owner rarely uses common areas. The representative committee has the authority to pursue debts, with the registrar's ruling enforceable like a court order.

Monthly building committee fees can range from NIS 80-140 in older buildings without elevators, NIS 150-350 for moderate maintenance, NIS 500-900 in modern buildings with parking and gardens, and over NIS 1,000 for luxury buildings. For an average four-room apartment, these fees can amount to approximately NIS 520 monthly, or NIS 6,240 annually, making it the second-largest household expense after municipal property tax (Arnona).