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Saudi landlords given 10 days to rectify illegal rent increases

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Saudi Arabia Opens Real Estate Market

Saudi Arabia’s Real Estate General Authority (REGA) has given landlords a ten-day grace period to rectify rent price increases made in violation of regulations governing the relationship between landlords and tenants.

The authority said the measure forms part of approved procedures for correcting violations, aimed at restoring compliance with applicable regulations.

REGA clarified that if rectification proves impossible because the landlord has leased the property to another tenant in good faith, and the previous tenant still wishes to renew the lease for the same property, the parties will be advised to refer the dispute to the competent court for resolution according to established legal procedures.

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The violations subject to correction include increasing the total rent of a property in the city or governorate, or exceeding the rent stipulated in a previous lease agreement. The rent must be corrected in accordance with regulations within the timeframe specified by the relevant committee.

The authority emphasised that if the violation is not rectified within the specified period, the necessary legal procedures will be implemented as stipulated by the regulations, without prejudice to the affected party’s right to seek compensation before the competent judicial authorities.

REGA indicated that these regulations are part of its efforts to regulate the rental market, enhance compliance, protect the rights of landlords and tenants, and achieve stability in the real estate sector.

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