Saudi Arabia Tightens Rental Rules as Landlords Face Rising Penalties

Saudi Arabia has introduced stricter enforcement measures for landlords who breach regulations governing rental relationships, as part of broader efforts to strengthen tenant protections and improve transparency across the property market.

Under an updated penalty schedule linked to the Labour Law framework, fines imposed on landlords will escalate with repeated violations. One of the most serious offences involves raising rents for residential, commercial or vacant properties in violation of approved regulations. For a first offence, landlords may face a fine equivalent to two months’ rent, increasing to six months’ rent for a second violation and up to 12 months’ rent for repeated breaches. In all cases, landlords are required to rectify the violation.

The schedule also outlines penalties for landlords who fail to register rental contracts on the Ejar electronic rental services network. Initial violations will result in a warning and an order to correct the breach. Repeated offences may lead to fines of up to three months’ rent, rising to six months’ rent for a third violation.

In Riyadh, additional penalties apply to landlords who refuse to renew rental contracts or force tenants to vacate properties without legal justification. The regulations clarify that the imposition of fines does not affect the right of tenants to pursue legal compensation through the courts.

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

Authorities said the strengthened penalty framework is designed to boost compliance, stabilise the rental market and provide greater certainty and protection for tenants, while reinforcing regulatory oversight of the Kingdom’s real estate sector.