Calcalist, Shlomit Tzur,   06.04.2021

The Attorney General will submit his position on the legality of renting residential apartments for short periods until July, according to a decision made in recent days by Tel Aviv Magistrate's Court Judge Guy Heiman.

The decision was made as part of a lawsuit filed about a year ago by apartment owners at 46 Shalom Aleichem Street in Tel Aviv, who requested a permanent restraining order for renting apartments for hospitality, vacation, entertainment or events, and for rent for less than a month. The judge ruled that since the issue is a matter of principle and has far-reaching implications, the Attorney General, the Tel Aviv Municipality Attorney General and the Local Planning and Construction Committee Ombudsman will submit their position on the question of whether renting short-term residential apartments is contrary to the building permit. Business.

At the same time, this coming Wednesday, the Supreme Court is expected to hear the hotel association's petition against the tax authority regarding the short-term tax liability of apartment renters. The association demands that the tenants of the apartments be taxed for short periods in the same way as business taxation, and in particular with regard to income tax, VAT and praise tax.

The plaintiffs on Shalom Aleichem Street in Tel Aviv own six apartments in the building, and the defendants own a similar number of apartments. The lawsuit, filed through attorney Asher Kahana, alleges that the defendants rent the apartments for short periods on a daily basis on Airbnb and other tourist sites such as Booking and Expedia under the name Emilia TLV, in stark contrast to the building permit and without a business license, causing inconvenience and severe damage to other tenants. .

According to the lawsuit, in September 2019, the apartments began to be populated for the first time, and some of the apartments became a "tourist storage facility for all intents and purposes, while renting the apartments for short periods, including for events and parties, while providing ancillary services such as cleaning and bedding, wireless internet, services Laundry, coffee facilities and airport transfers. "

It was further claimed that the business's website describes the place as an "apartment hotel located in the heart of Tel Aviv" and it is possible to book each of the apartments online for NIS 574 to NIS 1,168 per night.

Spokesman Avichai Mandelblit Photo: Uriel Cohen

"The building has been transformed from a quiet residential building on a narrow and quiet street into a resort and entertainment site, among other things for events and parties, severely harming plaintiffs and their tenants who are forced to suffer severe nuisances that actually impair their quality of life and even cause a decline in plaintiffs' assets," the lawsuit said. "Due to the rental of the apartments on a daily basis, there was a constant and increased movement of changing strangers entering the common lobby and using the elevator and other common facilities of the building, and daily entry and exit of individuals, families and groups laden with luggage ... Defendants illegally took over parts of the common areas. "And they made it part of their business, including the trolley room, which became a warehouse for receiving and taking out laundry for the defendants' business, and even the building lobby sometimes looks like a hotel's cage."

Plaintiffs also expressed concern that the automated parking facility, which is not yet in use today, could collapse following use by occasional guests who have not undergone proper instruction for use. It was further stated that the defendants rent out their apartments on a daily basis, and the guests tend to celebrate with shouts while playing music in the late hours of the night.

On the other hand, the defendants argued in the written defense that the apartments are rented for residence for different periods of time, and therefore do not require a business license. They further argued that the nuisances mentioned were not supported by evidence. According to them, the issue of renting apartments for short-term periods has reached the High Court and is awaiting a main legislative process. In addition, they claimed that the building is located in one of the touristy and busy areas, a recreation area, and not a quiet rural area.