New Regulatory Controls on the Landlord–Tenant Relationship in Saudi Arabia (1447H)

New statutory provisions governing the relationship between landlords and tenants were issued by Royal Decree No. (M/73) dated 2/4/1447H, as part of the State’s efforts to regulate the real estate market, provide suitable and decent housing, and achieve the Vision 2030 objectives of residential stability and transparency. In this article Shehab Alsaleh Lawyers & Legal Advisors explains the main new controls applicable across the Kingdom, with a focus on the provisions specific to Riyadh.

1. General Lease Provisions for All Cities in the Kingdom

  1. Mandatory registration of leases on the “Ejar” network
    The landlord must register any unregistered lease on the Ejar platform, and the tenant has the right to request registration. The other party may object before the Authority within 60 days of notification; if that period passes without objection, the lease data is deemed correct.
  2. Automatic renewal of leases
    The lease renews automatically unless either party notifies the other of its wish not to renew at least 60 days before the end of the term, except for:

    • Leases with 90 days or less remaining when the provisions came into force
    • Termination by mutual agreement after the notice period has passed

    The Authority may extend the notice period in standard-form leases according to the type and term of the lease.

2. Provisions Specific to Riyadh

These controls apply temporarily (for five years) to curb rising rents in the capital:

  1. The total rent may not be increased in existing or new leases.
  2. For a vacant property that was previously leased, the rent may not exceed that of the last lease.
  3. For a property never previously leased, the rent is set freely by agreement between the parties.
  4. The landlord may object to the set rent before the Authority in the following cases:
    • Major structural or construction renovations
    • The last lease predates 2024
    • Other cases determined by the Authority’s board of directors
  5. The landlord may not refuse renewal and require the tenant to vacate except in the following cases:
    • The tenant’s failure to pay
    • Structural defects affecting safety (supported by an approved technical report)
    • The landlord’s wish to use the property personally or for a first-degree relative
    • Other cases determined by the Authority’s board of directors
  6. Penalty for violations: a fine not exceeding 12 months’ rent, correction of the violation, and the injured party’s right to claim compensation.

These Riyadh-specific provisions expire five years after they come into force.

Shehab Alsaleh Law Firm’s Lease and Real Estate Services

The new lease controls aim to achieve balance and transparency between landlords and tenants, particularly in commercial leases for companies and establishments, and to protect both parties’ rights under the latest regulations. Shehab Alsaleh Law Firm provides comprehensive services in Saudi lease and real estate law, including:

  • Drafting and reviewing leases in line with the Ejar system
  • Representation before lease dispute committees
  • Advice on permitted increases and objections
  • Resolving lease disputes efficiently and quickly

To protect your rights and ensure full compliance with the new rules, contact us today through our contact page.

For more official information: Real Estate General Authority – Ejar platform