Saudi Arabia tightens rental rules as landlords face rising penalties

Saudi Arabia has introduced escalating penalties for landlords who breach regulations governing rental relationships, as part of broader efforts to strengthen tenant protections and regulate the property market.

According to a schedule under the Labour Law, landlords who violate rental rules will face fines that increase with repeated offences.

One of the most serious violations is raising rents for residential, commercial or vacant properties in contravention of approved regulations. For a first offence, landlords may be fined an amount equivalent to two months’ rent. This rises to six months’ rent for a second violation and up to 12 months’ rent for repeated breaches. In all cases, landlords are also required to rectify the violation.

The schedule also sets out penalties for failing to register rental contracts on the Ejar electronic rental services network. These begin with a warning and an order to correct the breach. If the offence is repeated, fines of up to three months’ rent may be imposed, increasing to six months’ rent for a third violation.

In Riyadh, similar penalties will apply to landlords who refuse to renew rental contracts or force tenants to vacate properties without legal justification. The regulations make clear that the imposition of fines does not affect the right of affected tenants to seek compensation through legal channels.

The measures build on a Cabinet decision approving provisions that regulate the rental relationship, including a five-year suspension of annual rent increases for residential and commercial properties in the city of Riyadh.

Authorities say the updated penalty framework is intended to improve compliance, increase transparency in the rental market and provide greater stability for tenants.