The General Authority for Real Estate seeks to regulate the rental relationship between landlord and tenant through a set of decisions and regulations that include the types of contracts covered, the mechanism for determining the rental value, and the procedures for registering contracts in the "Ejar" network.
First: Types of contracts covered by rent control
The rent control decision includes all residential and commercial contracts, except for agricultural and industrial uses that fall under commercial real estate and are not subject to the requirements associated with rent control. This decision aims to standardize the regulatory framework for contracts and ensure clarity of obligations between the parties.
Second: The mechanism for determining and raising the rental value
The total rental value of residential and commercial real estate leases within the urban area of Riyadh is fixed according to the total value of the last registered rental contract for the previously leased property. For properties that have not been previously leased, the rental value is determined according to what is agreed upon between the lessor and the tenant, which achieves flexibility in negotiation and maintains market stability.
Third: Procedures for registering the contract in Ejar
The lessor is obliged to register the rental contract in Ejar, and the tenant has the right to apply for registration if the lessor does not do so. The other party has up to 60 days from the date of the notice to file an objection, and if no response is received within this period, the contract data will be officially approved.
Fourth: Are leases automatically renewed?
Leases are automatically renewed unless one party notifies the other party not to renew at least 60 days before the expiration date of the lease. This is a way to ensure the continuity of the contractual relationship and avoid sudden disputes between the lessor and the lessee.
V: Cases of withholding renewal or requesting eviction
The lessor in Riyadh may not withhold renewal or ask the tenant to vacate except in specific cases, including:
The tenant defaults on payment.
Structural defects affecting the safety of the property or residents according to a certified report.
The lessor or a first degree relative wishes to use the residential property for personal use.
Riyadh City landlord may not withhold renewal or ask the tenant to vacate except in specific cases.
Sixth: Penalties for violating the statutory provisions Sixth.
A financial fine shall be imposed on anyone who violates the provisions for controlling the rental relationship, not exceeding the value of 12 months" rent for the real estate unit under contract, and the violator shall be obliged to correct the situation and compensate the affected person, in order to enhance statutory compliance and limit violations in the real estate market.
