Public Authority for Real Estate is moving to reorganize the activity of real estate property management in the Kingdom through a new draft regulation aimed at raising the efficiency of the sector, enhancing transparency and protecting the rights of owners and tenants, by setting a clear framework for the contractual relationship between property management parties and regulating the financial, administrative and operational aspects of the activity.
The General Authority for Real Estate is moving to reorganize the activity of real estate property management in the Kingdom.
The Real Estate Authority invited the municipal services, planning and urban development sector to express their views and comments on the draft "Real Estate Property Management Regulation" during the period from May 14 to June 14, 2026, in a move aimed at developing the real estate work environment and raising the level of professionalism in managing revenues and services related to real estate.
The draft includes the requirement to obtain an official license from the Authority to practice real estate property management activity, while limiting the granting of the license to legal persons only, and preventing any entity or individual from practicing the activity without an approved license.
The Real Estate Authority has issued a new draft regulation that aims to raise the efficiency of the sector, enhance transparency, and protect the rights of owners and tenants.
Requirements for submitting license applications
The regulation stipulates that the submission of license applications will be exclusively through the electronic platform approved by the Authority, provided that all required data and documents are attached, with the authority to request any additional information when needed, and the applicant is obliged to complete them within a period not exceeding 10 working days from the date of notification, otherwise the application will be considered rejected.The regulation sets the duration of the license at five years starting from the date of its issuance, with the possibility of renewing it with a request submitted at least 60 days before the expiration of the term, after ensuring that all conditions of the license continue to be met.
Renewal of the license is possible with a request submitted at least 60 days before the end of the term.
Clear framework for the tasks of the real estate property manager
The Authority set a clear framework for the tasks of the real estate property manager, which included managing real estate leasing operations, renewing contracts, concluding and documenting them with the competent authorities, collecting rents and following up their transfer to the property owner according to the periods specified in the contracts, in addition to managing tenants" affairs and following up eviction requests.
Clear framework for the tasks of the real estate property manager.
<The tasks also included receiving tenants' complaints and observations, addressing and documenting them, supervising limited maintenance work, preparing periodic financial and operational reports including occupancy rates, collection levels, revenues and expenses, as well as representing the property owner in owners' associations in accordance with applicable regulations.
The regulation prohibited the property owner from contracting with more than one property manager for the same property in order to unify responsibilities and reduce conflicts of authority. On the other hand, the project imposed a series of obligations on the property manager, most notably commitment to integrity and impartiality, not to exploit information or fall into conflict of interest, as well as maintaining the data of owners and tenants in accordance with personal data protection regulations.
The regulation also obliges the property manager to keep financial, administrative and operational records for at least ten years, and to disclose to the property owner any financial or professional relationship with tenants or service providers, in addition to disclosing any commissions or fees received from third parties associated with the property.The regulation requires the property manager to provide the Authority with any information or reports requested by it within the specified period, and to prepare a comprehensive annual report on the performance of the managed properties and deliver it to the property owner.
The regulation also emphasizes that all records, data and reports related to the property must be handed over to the new property manager under an official notarized record upon termination of the contract or transfer of management, with notification of the Authority within ten working days.
The regulation also requires the property manager to provide the Authority with any information or reports requested by it within the specified period.
Among the most prominent features of the project is the requirement to appoint a responsible manager who has passed the qualification program approved by the Authority, in a move aimed at raising the professional competence of workers in the sector.
The regulation prohibits the property manager from delegating any other person to carry out his duties unless after obtaining the express written consent of the property owner, with the original manager's continued responsibility for all delegated work. The regulation prohibits the deposit of funds collected from tenants or third parties into the property manager's personal accounts, and requires them to be deposited directly into the property owner's accounts.
The regulation prohibits the property manager from delegating any other person to carry out his/her duties without obtaining the express written consent of the property owner.
The Authority gave all real estate property management practitioners a period not exceeding 90 days to regularize their status in accordance with the new provisions and regulations.
The Authority gave all practitioners of real estate property management activity at the start of the implementation of the regulation a period not exceeding 90 days.
