The Ministry of Housing’s “Ejar” program has launched an electronic payment feature through the “Saddad” service. This feature allows users to pay rent electronically and select the appropriate payment frequency—whether monthly, quarterly, semi-annually, or annually. The program noted that the launch of this service offers numerous benefits to all parties involved in the rental process, as it simplifies the payment process for tenants and streamlines the collection process for landlords.
In a press release, “Ejar” explained that this service, provided through the “Electronic Network for Rental Services,” offers an electronic payment feature via the “Sadaq,” thereby eliminating the need for both parties to the contract (landlord and tenant) to handle cash transactions—which were previously conducted through an accredited real estate broker—and emphasizing that electronic payment serves as an official proof of rent payment, in addition to the fact that this service streamlines financial collection procedures, aids in monitoring financial transactions, and safeguards the rights of both parties to the lease agreement.
This step implements Cabinet Decision No. (131) to establish the electronic network for rental services, with the aim of facilitating and documenting rental transactions and strengthening trust among the parties involved, and to record the mutual obligations between landlords, tenants, and real estate brokers in the rental housing sector. The resolution also stipulates that the Ministry of Housing shall coordinate with the Saudi Arabian Monetary Authority to make the necessary arrangements for providing an electronic payment service for rent payments made through the network and to make payment information available.
The payment schedule and electronic payment services are intended for both landlords and tenants. A prerequisite for using the electronic payment service is that the landlord has an account on the online rental services platform, through which all necessary data—most importantly the bank account number “IBAN.”
It is worth noting that the “Ijar” program was officially launched on February 12, 2018, to achieve several objectives through which the Ministry of Housing seeks to regulate and ensure the sustainability of the real estate rental sector and guarantee the rights of all parties involved in the rental process. This was realized with the launch of the standardized lease agreement, which serves as an enforceable document, thereby reducing potential disputes and ensuring they are resolved quickly and easily. The online platform also offers a number of benefits to parties involved in the rental process, including electronic payments, the issuance of electronic receipts and payment orders, the enforcement of maintenance duties and obligations, bill payments, and other features that the Ministry of Housing is working to launch.
