Contracts & LeasingRental Arrears
Synonyms: Rent Arrears، Overdue Rent، Outstanding Rent
Last updated: 2026-10-05
Short Definition
Unpaid rent amounts past their agreed-upon due dates, accumulating over time and giving landlord right to legal claim.
Overview
Rental arrears under Saudi law are amounts due from lessee to lessor not paid on dates agreed in the Ejar contract. They include: late monthly or annual rent, associated service fees, specific contractual compensations, or damages the lessee bears.
Under the unified residential lease, a grace period runs from each due date: 15 days if the payment cycle is under 180 days, 30 days if it is 180 days or more, followed by the termination clause. There is no statutory three-month trigger: once the grace period has passed, the lessor may file a financial execution request via Najiz to collect the unpaid rent, while a direct enforcement request is for eviction and similar acts. Rent on new residential leases is paid through Ejar's digital channels, including mada and SADAD.
The major strength of the Saudi system: the unified lease documented on Ejar is an executive instrument, so an execution request is filed via Najiz without a lawsuit; if the lessee does not pay within the statutory period after being notified of the execution order, compulsory measures follow, such as attaching his salary within the legal limits or his bank accounts and assets. No official processing times are published.
⚖️ Legal Basis
Claiming arrears is based on the Enforcement Law issued by Royal Decree No. (M/53) of 1433 AH, under which the unified lease documented on Ejar is enforced as an executive instrument; it is replaced by the Execution Law issued by Royal Decree M/237 from 28 October 2026. The Civil Transactions Law also regulates creditor's rights to collect debts. Najiz is the official electronic portal for filing execution requests.
💡 Practical Example
A real estate office manages 30 apartments for an owner in Dammam. One tenant did not pay his monthly instalment (SAR 4,000). The office waited for the unified lease's grace period (15 days for a monthly payment cycle) to pass and contacted him amicably through Ejar, then entered Najiz on the owner's behalf (with a power of attorney), attached the documented lease and filed a financial execution request to collect the arrears. The tenant was notified of the execution order and, as he did not pay within the statutory period, compulsory measures followed, including attachment of part of his salary within the legal limits until the arrears were paid. Judicial costs for a financial execution request are 2% of the amount, at least SAR 500 and at most SAR 10,000, normally borne by the debtor.
⚠️ Common Mistakes
- ✗Waiting long before acting (6 months+) — makes collection harder and gives the tenant chance to disappear or transfer funds.
- ✗Accepting partial payments without documentation — makes it hard to prove what was paid and what remains; for new residential leases, payments outside Ejar’s digital channels are not accepted as proof of payment, while Ejar allows partial payment if both parties agree.
- ✗Attempting to collect arrears by cutting electricity, water, or evicting the tenant — not permitted: Ejar has stated that a lessor may not cut services over arrears, the lessor must not interfere with the tenant's use (Article 423), and eviction goes through the Execution Court.
- ✗Filing a direct enforcement request to collect rent — direct enforcement is for eviction and similar acts; arrears are collected through a financial execution request.
- ✗Verbally waiving part of arrears without documentation — doesn't cancel right to claim them judicially but causes complicated dispute.
🌍 International Differences
In the UAE, collection needs a Dispute Resolution Center decision (30-90 days). In Turkey, collection requires a judicial decision and takes months. In Egypt, collection from old rent is nearly impossible. The unique Saudi advantage: direct enforcement without judiciary, faster than most countries, strongly protecting lessor rights.
FAQs
When can the lessor file an enforcement request?▾
There is no statutory three-month requirement. Under the unified residential lease a grace period runs from the due date (15 days if the payment cycle is under 180 days, 30 days if it is 180 days or more); once it has passed, the lessor may file a financial execution request via Najiz under the documented lease, and may terminate under the termination clause.
How long do collection procedures via Najiz take?▾
No official processing times are published. The Execution Law sets a period to pay after notification of the execution order (five days under the current law, five working days under the new law in force from 28 October 2026), after which compulsory enforcement follows. Actual collection depends on the tenant's income and assets, and monthly salary attachment may take several months for full payment.
Are interest charges calculated on overdue amounts?▾
No. The unified residential lease has no late fee, and Article 178 of the Civil Transactions Law excludes money obligations such as rent from compensation fixed in advance. Judicial costs of the execution request are normally borne by the debtor.
What if the tenant is genuinely insolvent?▾
The system protects minimum living standard. Under the new Execution Law in force from 28 October 2026, attachment may not exceed one third of a salary or one quarter of a pension (Article 26). If the tenant has no income, their assets are seized if any, otherwise the debt remains for the future.
Can the tenant recover deposit after paying arrears?▾
If all arrears are paid and property condition is sound, they may recover the deposit. Often, any compensation due to breach is deducted from it.
