Real Estate
Regulatory Provisions Governing the Landlord–Tenant Relationship in Riyadh
The Council of Ministers issued Resolution No. (226) dated 24/03/1447 AH, pursuant to Royal Decree No. (M/73) dated 02/04/1447 AH, introducing regulatory provisions governing the relationship between landlords and tenants within the urban boundaries of the City of Riyadh. These provisions shall remain in force for a period of five years commencing on 3 Rabi’ Al-Thani 1447 AH (25 September 2025).
The provisions aim to balance the interests of landlords and tenants, enhance the stability of the real estate market, and regulate the market by limiting arbitrary practices in determining rental amounts and renewal terms.
Key Regulatory Provisions
First: Rent Stabilization
- Landlords are prohibited from increasing the total rent payable under existing or new leases during the period in which these provisions remain in force.
- Any increases stipulated in the lease shall be deemed part of the total rental amount until the expiry of the lease term.
- Where a property has previously been leased, the new rent may not exceed the property's most recent rental value.
- A landlord may submit an objection to the General Real Estate Authority (REGA) in the following cases:
- Where the property has undergone substantial renovations or improvements that have affected its value.
- Where the most recent lease was entered into before 2024.
- Any other cases approved by the Board of Directors of the Authority.
Second: Lease Renewal
A landlord may not refuse to renew a lease except in the following cases:
- The tenant has failed to make the required rental payments.
- The property has structural defects affecting its safety, as established by an accredited technical report.
- The landlord or one of the landlord’s first-degree relatives intends to use the property as a personal residence.
In all other cases, the lease shall be automatically renewed unless either party notifies the other of its intention not to renew at least 60 days prior to the expiry of the lease.
Third: Mandatory Registration on the Ejar Network
- Registration of the lease on the Ejar electronic rental services network is a fundamental requirement for the validity and legal enforceability of the lease.
- Unregistered leases shall not be recognized before administrative or judicial authorities.
- Either party may request registration of the lease, while the other party may object within 60 days from the date of notification. Upon expiry of this period, the lease information shall be deemed accurate and binding.
Frequently Asked Questions (FAQ)
1. Do these provisions apply to all types of real estate?
Yes. The provisions apply to buildings and land designated for residential use, commercial use, or both, located within the urban boundaries of the City of Riyadh.
2. Can the rent be increased following renovation or development?
Yes, provided that the works carried out are substantial and have a material impact on the rental value of the property. The landlord must submit an objection to the General Real Estate Authority for the proposed increase to be approved.
3. Can a landlord request the eviction of a tenant upon expiry of the lease?
No, except in the specific cases permitted under the applicable regulations, such as failure to pay rent, the existence of structural defects affecting the safety of the property, or the landlord’s intention to use the property for personal residence.
4. What is the effect of failing to register the lease on Ejar?
An unregistered lease shall be considered invalid and shall not produce its legal effects or be recognized before official authorities. Failure to comply with the applicable regulatory provisions may also constitute a violation subject to a financial penalty.
5. When did these provisions come into effect?
The provisions came into effect on 25 September 2025 and will remain in force for five years within the urban boundaries of the City of Riyadh.
Conclusion
- Existing leases: Leases entered into before 25 September 2025 are not affected by the new provisions prior to that date.
- Future leases: New leases are subject to rent stabilization for a period of five years within the City of Riyadh.
- Registration on Ejar: Registration is mandatory to ensure legal enforceability and avoid applicable penalties.
- Investment and operational leases: These may require specific legal assessment due to their more complex nature.
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