By: Lior Zahavi | Emek Real Estate

February 2026 marks a turning point in the Israeli real estate market, and in the Jezreel Valley in particular. The Ministry of Justice has published for public comment the draft "Rent and Lending Regulations (Existing Residential Lease Contract), 2026." If in the past the "Fair Rent Law" (2017) provided general headlines, the new regulations get down to the smallest details of everyday life.

For us, the residents of the valley, these changes encounter a unique reality: old houses on kibbutzim ("grandmother's houses"), housing units on estates in moshavim, and luxury villas in community settlements like Timrat and Shimshit. The dynamics here are not like Tel Aviv; they involve admission committees, apartment associations, cooperative societies, and a dense community.

In this article, I will dive deep into the new regulations, analyze the latest rental prices in Tivon and the Valley for 2026, and explain how property owners and tenants can prepare for the new era in a smart and profitable way.

Part 1: "The Existing Contract" – An End to the Gray Area?

The big news for 2026 is the creation of a "default" mechanism. The legislator realized that many contracts (especially in the rural sector, where people sometimes "shake hands" and download a generic contract from the Internet) are deficient.

The new rule is simple: wherever your contract is "silent" or unclear - the new regulations will automatically apply.

1. The Option Trap: Inflation Protection

One of the most common disputes I encounter as a realtor is the issue of contract renewal. Until now, a vague option clause has been an opening for blackmail ("Want to stay? The rent is going up by 1,000 NIS").

The new regulations state:

• If an option is given but no explicit price is specified, the rent for the additional period will increase in accordance with the consumer price index only .

• An example from the field: You rented a house in the Kibbutz Yifat expansion for 7,500 NIS. The market jumped by 10%, but the index only rose by 2.5%. If you didn't write otherwise in the contract, the landlord can only raise the price to about 7,687 NIS.

• Tenant's obligation: To exercise the option, the tenant must give 60 days' written notice and pay a "seriousness fee" (an advance payment for the first month). Did you miss the deadline? You lost the automatic right.

2. The Repair Revolution: Who is responsible for the boiler and air conditioner?

In single-family homes in the valley, wear and tear is higher than in new apartments in the city. The new regulations put an end to the debates:

• The landlord's (landlord's) responsibility: Any repairs to the apartment's systems (electricity, plumbing, sewage, gas), sealing and moisture, as well as repairs to appliances that were rented with the apartment (air conditioner, solar water heater) - applies to the landlord.

• Mandatory schedule: Regular repairs must be carried out within 30 days . Urgent repairs (pipe burst, electrical short) – immediately (usually up to 3 days).

• Tenant liability: Damage caused by "unreasonable use." This is where the interpretation comes in – is damage to the irrigation system in the moshav due to the tenant's dog "unreasonable use"? It is likely that it is, but the burden of proof is on the landlord.

Part II: The unique challenge of the rural sector

This is where things get complicated. The rental market in moshavim and kibbutzim is subject not only to state laws, but also to the bylaws of the associations and decisions of the Israel Land Authority (ILA).

1. Tenant Admissions Committees – Expanding the Law

In 2026, following the amendment to the Cooperative Societies Ordinance, community settlements and expansions in the Negev and Galilee with up to 700 households are permitted to hold reception committees.

• The catch: The law also applies the admissions committee to tenants for long periods (usually a cumulative period of over 5 years).

• My tip: If you are renting a house in T'Tamat or Shimshit and plan to stay long-term, keep in mind that you may be required to go through a community screening process at some point. For landlords – make sure the lease contains a "suspension clause" that cancels the contract if the tenant does not pass an admissions committee (in relevant cases), so as not to be exposed to a lawsuit.

2. Kibbutzim: Affiliation with "Bar-Rasha"

Renting on a kibbutz is not like renting in the city.

• Associated apartments (in the land registry): are treated as private property. The owner is directly subject to the new rental regulations.

• Apartments before association: The apartment belongs to the kibbutz. The tenant is actually a "subtenant." In these cases, you must make sure that the kibbutz approves the rental. Please note: The Housing and Urban Development Authority is tightening enforcement in 2026 regarding the payment of user fees (usually 5% of the rent) for renting non-associate properties. The contract must clearly state who bears this cost - the landlord or the tenant?

3. Housing units in Nahalot (Palach)

In moshavim such as Nahalal, Kfar Yehoshua and Tel Adashim, housing units are an important source of income. However, it should be remembered that renting out agricultural buildings (converted warehouses) for residential purposes exposes the landowner to heavy fines for "excessive use." The new regulations, which define what constitutes a "habitable apartment," give the tenant grounds to immediately cancel the contract if the property does not meet standards (ventilation, lighting, ceiling height), even if he knew about it in advance.

Part 3: Market Overview 2026 – Prices and Trends

As someone who lives the area every day, I see peak demand in our area in 2026. Young families from the center continue to discover the valley's quality of life, excellent education, and spaciousness. Strong demand meets limited supply, which pushes prices up.

Estimated rental price list – Emek Jezreel and Tivon (2026):

The hot spots:

• Timrat: Properties with income-producing housing units are being snapped up. An old house with a separate unit is a "golden product" for investors.

• Nahalal: The outer circle and the extensions attract a very strong population. Nahalal's brand is only getting stronger.

• Ramat David and the Embankments: The new expansions offer homes of a high modern standard that is lacking in the older kibbutzim.

Part D: Taxation Aspects for Landlords – 2026 Update

Just before you price the property, it is important to remember income tax.

As of 2026, the tax exemption ceiling for income from residential rental is approximately NIS 5,654 per month.

• Most small units in kibbutzim and moshavim are completely exempt.

• For villa owners (above the ceiling): You have two main routes – the 10% route (turnover) or the marginal tax route (with recognition of expenses).

• Realtor's tip: If you have a "grandma's house" or an old house that requires a lot of repairs (which are now your full responsibility by law!), it's worth checking with an accountant about the marginal tax route. You may be able to deduct the renovation and repair expenses from your taxable income and pay less tax.

Summary and Recommendations ("Checklist")

The market is changing, and amateurism is becoming more and more expensive. Whether you are renting a plot of land in Kfar Baruch or a house in Tivon, here are 4 rules of thumb for 2026:

1. Don't rely on "it will be fine": the new contract is the default. If you want other (legal) terms, write them explicitly in the contract.

2. Handover protocol: In rural properties with gardens and complex systems, photograph and document everything at the entrance. This is your insurance against arguments about “unreasonable use.”

3. Check the community status: Renters? Make sure you understand the meaning of association taxes, admissions committee, and community services (pool, education).

4. The right advisor: The Valley is a small place. Working with a broker who is familiar with the secretaries, the master plans, and the legal nuances of the rural sector is not a luxury – it saves time and money.

Looking for a home in the valley? Property owners who want peace of mind?

I invite you to a non-binding consultation. Let's make your property a safe investment, and your home search a pleasant experience.

Lior Zahavi – Emek Real Estate

Real estate expert in community and rural communities, kibbutzim and moshavim in the Jezreel Valley and Tivon.

📞 052-648-1725

🌐 Liornadlan.co.il