Real estate9/26/2026

Short-Term Apartment Rentals Allowed in Haifa Despite Neighbors’ Lawsuit

The Land Registration Supervisor dismissed a lawsuit filed by apartment owners in the building at 3 Aharon Rosenfeld Street, who sought to prohibit apartment rentals through Airbnb and Booking. She ruled that, with respect to this building, short-term rentals fall within the “residential use” permitted under the bylaws.

Key facts

•Case No. 8/31/2024, Haifa
•Land Registration Supervisor
•Decision dated May 25, 2026
•Building: 3 Aharon Rosenfeld Street, Haifa
•Legal costs: ₪9,191
•Source of authority: Section 74 of the Land Law

What the Apartment Owners Disputed

In the 23-apartment building, some apartments had been rented for short periods since its construction, while others were occupied by their owners or by long-term tenants. The plaintiffs argued that daily and hourly rentals constitute commercial use, accelerate wear and tear on the elevator, doors and gates, and also cause dirt in the common areas. They sought to prohibit the defendants from renting out five apartments they own on a short-term basis.

What the Building Documents Stipulated

The joint construction agreement dated July 25, 2013, stipulated that the apartments would be used solely for residential purposes. The agreed bylaws, signed on January 30, 2023, and registered together with the building on March 6, 2023, likewise prohibit any other use of the residential apartments. However, the bylaws do not clarify whether “residential” means permanent residence or long-term residence only.

Why the Lawsuit Was Dismissed

The Supervisor ruled that the wording of the bylaws allows for two interpretations: short-term rentals may be viewed either as commercial hotel activity or as temporary residence. Because the bylaws constitute a contract between the owners, she examined the 2013 agreement, the correspondence and the testimony to determine the parties’ original intent. She concluded that the project’s promoters intended to use the apartments for several months each year and, during the remainder of the year, to rent them to medical students, medical tourists or other short-term occupants.

The Decision and Its Limits

The Supervisor ruled that, specifically under the circumstances of this building, short-term rentals through Airbnb or Booking constitute a permitted residential use, and declined to issue an injunction. The plaintiffs were ordered, jointly and severally, to pay the defendants a total of ₪9,191 in legal costs within 30 days of receiving the decision. The decision will remain in effect unless the District Court, in separate proceedings, interprets the bylaws differently or rules on the question of their cancellation or amendment.

What this means for you

The phrase “residential use only” in a condominium’s bylaws does not always and automatically prohibit daily rentals. Its meaning depends on the wording of the specific bylaws, the history of their adoption and the owners’ proven intent; therefore, the decision concerning this building does not establish a uniform rule for all buildings in Israel. However, noise, dirt and other nuisances may be addressed separately through the remedies prescribed by law.

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Case analysis based on court rulings