Saudi Arabia regulates landlord–tenant relationship

The Official Gazette published new regulations, approved by the Saudi Cabinet, to govern the relationship between landlords and tenants. The rules comprise 12 articles and designate the Real Estate General Authority (REGA) as the competent body for implementation.

Under the provisions, landlords are prohibited from increasing the total rent value of existing lease contracts upon the entry into force of the rules or for any new contracts concluded thereafter. For previously rented vacant properties, the total rent must not exceed the amount stipulated in the most recent lease agreement. In the case of properties being rented for the first time, the rent amount will be determined by mutual agreement between the landlord and tenant.

Landlords may object to the set rent value only if the property has undergone major structural or construction renovations that materially affect its rental value, or if the most recent lease contract was signed before 2024.

A landlord may not refuse to renew a tenant’s lease or require the tenant to vacate the property except in specific circumstances: if the tenant fails to pay rent; if the property has structural defects that compromise its safety or that of its occupants, as confirmed by an official technical report; if the landlord wishes to vacate a residential property for personal use or for the use of a first-degree relative; or in other cases determined by REGA’s board according to approved regulations.

The provisions limiting rent increases and renewal refusals will remain in force for five years from the date of implementation and will initially apply only to properties within Riyadh City. REGA’s board, following approval from the Council of Economic and Development Affairs, may extend the application of these rules to all or parts of other cities, governorates, or centers, based on defined indicators and criteria.

Anyone who violates the provisions of Articles 2, 4 or 7 of these regulations shall be subject to a financial penalty not exceeding the equivalent of 12 months’ total rent for the property in question, in addition to correcting the violation in accordance with rules set by REGA. This is without prejudice to the right of any affected party to seek compensation.