Can I deduct vaad bayit fees from my Israeli rental income for tax purposes?

Yes, but only on the ordinary-rate income tax track. Vaad bayit fees paid by the landlord are deductible as a maintenance expense under Section 17 of the Income Tax Ordinance (1961). On the 10% flat-rate rental track, no deductions of any kind are permitted. A licensed Israeli tax advisor can determine which track produces a lower liability for your specific situation.