A lessee operated a hostel without a business license and was required to evict the leased property even though the lease agreement does not address this issue.
The Court accepted the eviction claim and held that a lessor may demand the eviction of the lessee due to the lack of a business license even if there is no explicit reference to this in the lease agreement. Israeli law states that a lessee may not use the leased property except as agreed. The lessee may use the leased property for any use which is not expressly stated, as long as it’s not harming the leased property or the lessor more than agreed. Here, the lessor did know that the lessee was operating the property as a hostel, but although the lease agreement did not explicitly relate to the tenant's obligation to do so it is unthinkable that the lessor gave her consent for the tenant to use the property illegally, thus exposing her to legal action and subsequently bear a financial charge for doing so. Therefore, if the lessee does not have a lawful business license and with the absence of consent that the hostel will operate without a business license, the lessee must evict the leased property.