Landlords in Saudi Arabia face fines up to 12 months’ rent for illegal increases or contract breaches/Representative Image
Rental violations are about to get far more expensive, with authorities introducing a structured penalty system that targets unlawful rent hikes and contract breaches, reinforcing tenant rights across the market and especially in Riyadh.
A clear penalty ladder for rent violations
Under a schedule attached to the Labor Law, violations of regulations governing rental relationships are now formally classified, with fines that increase sharply for repeat offenders. One of the most serious violations is raising the total rent for residential, commercial, or vacant properties in breach of the regulations.The penalties escalate in stages. A first offense carries a fine equal to two months’ rent. If the violation is repeated, the fine rises to six months’ rent. Continued non-compliance leads to a penalty equal to 12 months’ rent. In all cases, landlords are required not only to pay the fine but also to rectify the violation itself.
Penalties linked to contract registration on Ejar
The schedule also addresses failures to register rental contracts on the electronic rental services network, Ejar. Enforcement begins with a warning, alongside an obligation to correct the violation. If the issue persists, a second offense can trigger a fine of up to three months’ rent. A third offense increases the penalty to six months’ rent.Similar financial penalties apply in Riyadh when landlords refuse to renew rental contracts or force tenants to vacate properties without legal justification, reinforcing protections against arbitrary eviction or contract termination.
Tenant rights and compensation remain protected
The decision makes it clear that imposing these penalties does not affect the right of the harmed party to seek compensation. Tenants who suffer losses as a result of violations can still pursue claims independently of the fines imposed on landlords.
Part of a broader rent control framework in Riyadh
These measures build on an earlier Cabinet decision approving provisions that regulate the rental relationship. That decision included suspending annual increases in the total rent value for both residential and commercial rental contracts in Riyadh for a period of five years. Together, the rules aim to stabilize the rental market, curb unlawful practices, and provide tenants with clearer protections while setting firm expectations for landlords.
