A considerable number of apartment owners reached the insight that the asset they own is an investment, which can generate a maximal return. If in the past they would rent the asset of their investment to one tenant, nowadays the trend is a little bit different and more challenging, which is to split the apartment into a few apartments. The motivation behind this is to enjoy a higher sum of rent and to increase the passive income. The question that is asked with regard to that is where do you get an approval to split the apartment?.
Splitting the apartments will not only increase the rent of the homeowners it will also generate the following public benefits that are no less important:
- The apartments that will be offered because of such a split-up will be smaller, and therefore they will be offered at lower prices to the tenants.
- This is a solution to the shortage of apartments (especially in the city of Tel Aviv and the cities in the center of Israel)
- It increases the competition, which will benefit with the long-term tenants- there will be more assets
It needs to be mentioned that despite these public benefits getting the coveted approval to split the apartment isn’t that simple, and if you do so without receiving a formal approval for this in the form of a building permit, then it is a violation of the Planning and Building Law, which is a criminal offense!.
If you are apartment owners and you are interested in this possibility, we recommend you to address us as soon as possible, and we will be happy to consult you in this matter based on our vast experience with the relevant bureaucracy and in fields of planning, construction and licensing.
The Authorities create Difficulties, the Neighbors are not enthusiastic, and the Apartment Owners Lose
If there are so many benefits in splitting an apartment why is it so complicated to receive an approval for this?. The authorities on their part claim that they are concerned about the load of infrastructures such as plumbing, instillation and etc.
The neighbors in residential buildings are not thrilled with this trend of splitting apartments because the presence of additional neighbors in the building will create a feeling as if the building is a boardwalk. You can argue about the advantages and disadvantages of splitting apartments, but one thing is sure- you are required by law to receive a permit to split an apartment. It should be mentioned that it will be easier to receive such an approval for a detached house than for an apartment in a condominium.