New Ejar System 2025: Your Tenant Rights and Riyadh Rent Freeze Decision

In a historic and unprecedented move, the Saudi Council of Ministers, under the direction of His Royal Highness Crown Prince Mohammed bin Salman, issued a decision to freeze rent increases in Riyadh for a full 5 years. This decision comes as part of a package of new regulatory measures aimed at protecting tenants and achieving balance in the real estate market.

In this comprehensive guide, we cover everything you need to know about the new Ejar system, your rights as a tenant, and the actions you can take to protect yourself.

Riyadh Rent Freeze Decision 2025

On September 25, 2025, the Council of Ministers issued a decision and Royal Decree approving the regulatory provisions governing the relationship between landlords and tenants. This decision came in response to the challenges the capital witnessed in recent years regarding rising rental prices.

Core Decision: Suspension of annual increases in total rent value for residential and commercial property leases (existing or new) within Riyadh's urban boundaries for 5 years, starting September 25, 2025 and ending September 2030.

What does this mean for you as a tenant?

• Landlords cannot raise rent for the next 5 years regardless of reasons

• The decision applies to both existing and new contracts

• Vacant properties in Riyadh: rent cannot exceed the last contract registered on Ejar platform

• These provisions can be extended to other cities by decision of the Real Estate Authority

Tenant Rights in the New System

The new system grants tenants strong and comprehensive legal protection ensuring their rights against any violations:

1. Protection from Forced Eviction

Tenants cannot be evicted except by court order, with a clear legal justification such as contract violation or non-payment. Any eviction attempt without a court order is a punishable offense.

2. Prior Notice Before Contract Termination

The system requires landlords to provide written notice at least 30 days before contract termination. This gives you sufficient time to find alternative housing.

3. Right to Terminate Without Penalty

You have the right to terminate the contract without paying any penalty in the following cases:

• Significant property defects not apparent at signing

• Landlord's failure to fulfill contractual obligations like maintenance

• Landlord's attempt to impose unjustified rent increases

4. Compensation for Damages

If the landlord terminates the contract early without legal justification, you can claim compensation for material and moral damages as assessed by the court or Real Estate Mediation Center.

Automatic Contract Renewal

One of the most important developments in the new system is the automatic renewal principle:

Lease contracts are considered automatically renewed in all cities of the Kingdom, unless either party notifies the other of their unwillingness to renew at least 60 days before the contract ends.

When can landlords refuse renewal in Riyadh?

Landlords can cancel automatic renewal with 60-day notice only in specific cases:

• Tenant's failure to pay rent

• Structural defects affecting safety (with certified technical report)

• Landlord's desire to use the residential property personally or for first-degree relatives

Important Note: Even if the landlord doesn't pay renewal fees, the contract continues and renews automatically to protect your rights, with fees recorded as a debt against the landlord.

Penalties for Violators

The system established strict penalties to ensure compliance:

Fines up to 12 months' rent for anyone violating the regulatory provisions, plus correction of the violation and compensation for the affected party.

Appeal Process: Those issued violation decisions can appeal to the competent judicial authority within 30 days of notification.

Whistleblower Reward: An incentive reward of up to 20% of the collected fine is granted to those who report violations that are proven valid by final decision.

Landlord's Right to Object to Rental Value

Landlords may object to the specified rental value in exceptional cases:

• If the property underwent substantial structural renovations affecting its value

• If the last lease contract was signed before 2024

• Any other cases approved by the Real Estate Authority Board

Importance of Documenting Contracts on Ejar

Under Council of Ministers Resolution (292), registering all lease contracts (residential and commercial) on the "Ejar" platform is the official approved reference. Unregistered contracts are not considered valid contracts producing administrative and judicial effects.

Benefits of Ejar registration:

• Full legal protection of your rights

• Easy proof of contractual relationship in disputes

• Access to all new tenant protection provisions

• Ability to file official complaints when needed

How to File a Complaint

If you experience any landlord violation, you can:

1. Direct Negotiation: Try to resolve the issue amicably first

2. Real Estate Mediation: Apply to mediation committees at the Real Estate Authority

3. Najiz Portal Complaint: File a rental case through the Najiz electronic portal with all documents

4. Report Violation: Report violations to the Real Estate Authority to receive 20% reward

Golden Tips for Tenants

• Document everything: Keep copies of contracts, payment receipts, and any correspondence

• Don't sign unregistered contracts: Ensure the contract is registered on Ejar

• Know your rights: Increases are prohibited in Riyadh until 2030

• Don't fear complaints: The system protects you and rewards whistleblowers

• Save the Authority's number: Contact the Real Estate Authority for any inquiries

The rent freeze decision represents a qualitative leap in tenant protection, reflecting the leadership's commitment to achieving balance in the real estate market and ensuring housing stability for citizens and residents.