Engineer Walid Munshi, Director of the Real Estate Services Department at the General Real Estate Authority, confirmed that the recent updates in the regulation of the rental relationship between landlord and tenant aim to ensure the sustainability of the contractual relationship between the two parties, while defining clear controls for the automatic renewal of contracts, as well as establishing mechanisms to control the rental value.

Walid Munshi, Director of the Real Estate Services Department at the General Real Estate Authority.

Setting the relationship between landlord and tenant

<During the seminar “New statutory provisions to regulate the relationship between landlord and tenant” organized by Real Estate Monday, Munshi explained that the most prominent amendments include the governance of the automatic renewal of contracts, with the value of rent determined according to specific controls. Property owners were also given the right to object to the rental value in contracts concluded before 2024, through a report from a real estate appraiser that determines the fair value.

Manshi pointed out that the amendments include the governance of the automatic renewal process, with the rental value determined according to specific controls.

Manshi pointed out that the termination of contracts requires the consent of both parties, where the other party can be notified of not wanting to renew 60 days before the end of the contract in cities except Riyadh, the contract is terminated only in specific cases such as non-compliance of the tenant or the need for structural repairs.

Manshi pointed out that the termination of the contract requires the consent of both parties.

New updates in the "Ejar" system

He added that paper contracts are recognized in determining the rent value, and the tenant can submit copies of these contracts to the "Ejar" platform in case the lessor increases the rent in violation of the agreed upon rent.

<He explained that the new regulations include controls on the total rent, which must include all costs associated with the rental, while emphasizing that non-vacant properties cannot be challenged for their rental value.

Electronically documenting contracts

He explained that Ejar provides a mechanism for documenting contracts electronically, ensuring a more organized and transparent environment.

Another notable update is the mandatory automatic renewal of contracts, where it is possible to cancel the automatic renewal 60 days before the end of the contract, whether in Riyadh or in other cities.

Ejar also provides a mechanism for documenting contracts electronically, ensuring a more organized and transparent environment.

With regard to financial obligations, Munshi stated that Ejar platform allows electronic tracking of rental payments, which helps control delays in payment and allows the lessor to take appropriate legal action.

Ejar.

Regulating the relationship between landlord and tenant

In conclusion, Munshi emphasized that these updates enhance the regulation of the relationship between the lessor and the tenant, and contribute to protecting the rights of the concerned parties, pointing out the importance of the role of real estate brokerage offices in documenting previous contracts on the ”Ejar" platform to ensure the effective implementation of these controls.

Real estate brokerage offices.