Short Definition
Agreed amount tenant pays for property use, monthly or quarterly or annually, documented electronically through Ejar.
Overview
Legal Basis
Rent Payments are based on the Civil Transactions Law issued by Royal Decree No. (M/191) of 1444 AH, the chapter related to rental, which specifies payment and receipt obligations. They are also regulated by the mechanisms of the Ejar platform integrated with Saudi banks. Since 15 January 2024, rent under new residential leases is paid only through Ejar’s digital channels (mada, and SADAD with biller code 153) under Council of Ministers Resolution No. 131; no proof of payment outside them is accepted, and payments are settled automatically without a receipt voucher. Upon delay, the procedures of the Enforcement Law issued by Royal Decree No. (M/53) of 1433 AH are applied.
Practical Example
Ali rents an apartment in Riyadh for an annual rent of SAR 36,000 paid quarterly (SAR 9,000 every three months). Upon signing the Ejar contract, the payment schedule is set: January 1, April 1, July 1, October 1. Ali pays through Ejar’s digital channels (mada, or SADAD with biller code 153). On January 1, Ali pays the instalment; it is settled automatically without a receipt voucher (new residential lease) and reaches the owner’s registered account within 5 business days, and the payment status in the contract is updated, and the next date appears. If Ali is late on a payment, the owner may file an execution request on Najiz for the overdue amount, since the documented lease is an executive instrument.
Common Mistakes
- ✗Paying cash to the owner outside Ejar’s digital channels — for new residential leases since 15 January 2024, no proof of payment outside mada and SADAD (biller code 153) is accepted, and the owner may deny it later.
- ✗Losing track of the due dates in the payment schedule — a late payment can be enforced by the lessor through an execution request, since the documented lease is an executive instrument.
- ✗Assuming paying rent into the owner account directly without Ejar is correct — for new residential leases such payment is not recognised because it is outside Ejar’s approved digital channels.
- ✗Stopping payment on the pretext of a property problem — the obligation to pay remains; the proper route is to notify the lessor and, if he does not repair, to go to court (Article 419 of the Civil Transactions Law).
- ✗Assuming slight delay does not affect — Ejar’s rental-behaviour rating assesses, among other things, whether the tenant pays instalments on time.
International Differences
Rent payment practices differ between countries. In the UAE, payment by post-dated cheques is very common, with a growing shift toward electronic payment. In Turkey, monthly payment to the owner’s bank account is common. In Egypt, cash or cheque payment is common, with limited growth in electronic payment. In the UK, monthly payment by standing order or direct debit is common. In the US, rent is usually paid monthly by cheque or electronic transfer. The Saudi advantage in rent payments is full electronic documentation via Ejar, integration with Saudi banks, and link to direct enforcement mechanism upon delay without the need for lengthy litigation.
FAQs
What is the usual rent payment cycle in Saudi Arabia?▾
What is the difference between payment via Ejar and direct payment to owner?▾
When is the tenant considered late in payment?▾
Can the owner increase rent during the contract period?▾
Do I keep the receipt forever?▾
Related questions
- What can a landlord do if the tenant stops paying rent?
- Can I pay rent in cash or by direct bank transfer outside Ejar?
- When does rent paid through Ejar reach the landlord’s account?
- Can rent be paid monthly on Ejar leases?
- How do I get a rent payment receipt from Ejar?
- How can I manage my rental properties myself without an agency?
