Saudi Arabia issues rules on rent objections for vacant properties

Riyadh city

Saudi Arabia’s Official Gazette has published new rules governing the review and adjudication of objections to the total rent value set for vacant properties, as well as regulations for correcting violations of legal provisions governing the relationship between landlords and tenants, approved by the board of the Real Estate General Authority (REGA).

The rules on reviewing and ruling on objections to the total rent value of vacant properties consist of five articles and take effect from the date of their approval.

Under the regulations, “legal provisions” refer to rules governing the landlord-tenant relationship issued under Royal Decree No. (M/73) dated 4/2/1447 AH. A “vacant property” is defined as a property that is not leased at the time an objection request is submitted. The “specified total rent” refers to the rental value of the property and any other amounts paid by the tenant to the landlord under the most recent lease contract for the vacant property.

Article Three stipulates that REGA will review objections to the specified total rent in accordance with the legal provisions, based on a request submitted by the landlord for the vacant property in question. Objections must be submitted through the “Ejar” rental services platform, and the authority will issue a decision within 10 working days from the date the request is deemed complete.

Applicants must submit any additional documents requested by the authority within 10 working days of notification. Requests will be closed if the required documents are not provided within this period. The applicant will be notified of a reasoned decision accepting or rejecting the objection immediately upon issuance via the Ejar platform.

Objections to the specified total rent will be reviewed based on their stated grounds, provided that the objection request is accompanied by the required supporting documents, as outlined in an annex to the regulations.

The annex specifies the required documentation for objection cases, including instances where a vacant property is subject to major structural or essential renovation works. In such cases, applicants must submit a construction renovation permit, a report from an accredited engineering office detailing the structural or major renovation work carried out, and a report from an accredited real estate valuer stating the market total rent value following completion of the renovations.

For vacant properties whose most recent lease contract was signed before Jan. 1, 2024, applicants must submit a report from an accredited real estate valuer specifying the market total rent value as of the date these regulations were issued.

Separately, the regulations governing the correction of violations related to the legal provisions regulating the landlord-tenant relationship consist of eight articles and take effect from the date of their approval.

A “violation” is defined as any act or omission that breaches items 2, 4, or 7 of the legal provisions, as established by a decision issued by the committee formed within the authority to review violations under Article 20 of the Real Estate Brokerage Law. “Correction of a violation” refers to the measures required to remove the violation and remedy its effects within the prescribed correction period, restoring compliance with the legal provisions.

Article Three of the corrective regulations requires violators to rectify violations within the timeframe specified in the committee’s decision, not exceeding 10 working days from the date of notification.

The regulations set out specific correction mechanisms for violations, including cases where a landlord increases the total rent value of a property in Riyadh in breach of the rules, or raises the rent of a vacant property in Riyadh above the value stated in the last lease contract. In such cases, landlords must adjust the total rent value to comply with the legal provisions within the period specified by the committee.

Other violations include a landlord’s failure to register a lease contract on the Ejar platform, which must be corrected by registering the contract, as well as a landlord’s refusal in Riyadh to renew a lease and forcing a tenant to vacate the property outside the cases permitted under the rules. In such instances, the lease must be renewed if the tenant wishes to continue.

Article Five provides that if the correction period expires without compliance, the authority may adjust the total rent value or renew the lease contract, as applicable, in line with the legal provisions.

The regulations state that their application does not affect the right of any aggrieved party to seek compensation before the competent court.