Saudi Arabia Rent Increase Laws & the Ejar Renewal System

Saudi Arabia generally operates on a free-market principle regarding residential rentals, primarily governed by the Civil Transactions Law (Royal Decree No. M/191), which became effective on 16 December 2023 (3 Jumada al-Thani 1445 AH). While landlords and tenants are typically free to negotiate rent amounts, a mandatory rent freeze is currently in effect for properties within the urban boundaries of Riyadh. The process is strictly managed through the Ejar platform (mandated by Council of Ministers Resolution No. 131), which ensures transparency and legal enforceability for all parties.

The Role of Ejar in Rent Adjustments

The Ejar Electronic Network is the mandatory system for documenting all rental contracts in Saudi Arabia. This system provides significant protection against arbitrary or "surprise" rent hikes and ensures compliance with regional regulations.

• Fixed-Term Certainty: Once a contract is registered in Ejar, the rent is legally locked. A landlord cannot increase the rent until the current contract term expires.
• Contract Objection Window: Either party has a 60-day window from the date of notification to contest or object to the contract data before it becomes legally binding.
• Automatic Renewal: Pursuant to the Civil Transactions Law (Articles 558–590), residential lease contracts renew automatically under existing terms unless either party provides a notice of non-renewal or modification at least 60 days prior to expiration. If a tenant continues to occupy the property with the landlord's knowledge after expiry, the lease is deemed renewed under the same terms.

Notice Periods and Riyadh-Specific Restrictions

To modify rent for a subsequent term, landlords must adhere to the standard communication windows and regional restrictions defined by the Real Estate General Authority (REGA):

1. The 60-Day Window: Landlords should propose any changes to the rent or lease terms at least 60 days before the current lease expires. This allows the tenant sufficient time to either accept the new rate or provide notice to vacate (where applicable).
2. Riyadh Rent Freeze (2025-2030): Effective September 25, 2025, rent increases for all residential and commercial properties within the urban boundaries of Riyadh are frozen for five years. Landlords may not increase the total rental value for existing or new contracts during this period.
3. Vacant Property Pricing (Riyadh): For previously rented units in Riyadh that become vacant, the new rental rate must align with the last recorded lease value in the Ejar system. Initial rent for first-time rentals remains subject to mutual agreement.
4. Restrictions on Refusing Renewal (Riyadh): In Riyadh, landlords are prohibited from refusing a tenant's request for renewal except for:
   • Non-payment of rent.
   • Structural defects affecting the safety of the building.
   • The landlord's intent to use the property for personal residence or for a first-degree relative.

Dispute Resolution

If a landlord attempts to increase rent during an active contract, violates the Riyadh rent freeze, or fails to follow proper Ejar notification procedures, tenants have several avenues for recourse:

• REGA Mediation: The Real Estate General Authority (REGA) provides mediation services under the Real Estate Brokerage Law to resolve disputes regarding lease terms and rent adjustments.
• General and Enforcement Courts: For unresolved disputes, parties may file a case with the General Court (Real Estate Chambers). If the dispute involves the enforcement of a registered Ejar contract as an executive deed, it falls under the jurisdiction of the Enforcement Court pursuant to the Enforcement Law (Royal Decree No. M/53).

Best Practices for Landlords

To ensure compliance and maintain positive tenant relations:

• Monitor Ejar Alerts: Pay close attention to system alerts regarding upcoming lease expirations and the 60-day objection window.
• Verify Regional Rules: Ensure you are compliant with the Riyadh-specific freeze if your property is within the city's urban boundaries.
• Professional Communication: Always communicate through the official Ejar/Najiz channels to ensure a clear legal paper trail.

Landager simplifies this process by providing automated reminders for your 60-day notice windows, ensuring you never miss a deadline for rent reviews or lease renewals.

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