Unfurnished Property
Synonyms: Unfurnished Rental، Unfurnished Apartment، Unfurnished Home
Last updated: 2026-09-25
Short Definition
An unfurnished property is a residential or commercial unit let without furniture or movable appliances, so the tenant furnishes it at their own expense; its rent is usually lower than that of an equivalent furnished unit, and it is the most common format for long-term residential leasing.
Overview
Legal Basis
Unfurnished leases are governed by the Civil Transactions Law issued by Royal Decree No. (M/191) dated 29/11/1444H: Article 416 requires the landlord to deliver the property and its accessories fit for use, Article 419 makes necessary repairs the landlord's duty unless otherwise agreed, Article 422 lets the tenant recover what they spent with the landlord's permission for the benefit of the property but not what they added for personal benefit unless otherwise agreed, and Article 433 requires the tenant to maintain the property according to custom. The contract is documented on Ejar, supervised by the Real Estate General Authority, at SAR 125 per contract year for residential leases, and residential rent is VAT-exempt under Article 30 of the VAT Implementing Regulations.
Practical Example
An employee relocating to Dammam compares an unfurnished flat at SAR 30,000 a year with a similar furnished flat at SAR 42,000. The unfurnished flat comes without a kitchen or air conditioning, so he buys furniture and appliances for SAR 25,000 and installs a kitchen for SAR 9,000 and air conditioners for SAR 8,000, SAR 42,000 in total. He agrees in writing with the owner that the kitchen stays at move-out in return for a SAR 3,000 reduction in the first year's rent, and that he takes the air conditioners with him. The three-year lease is documented on Ejar for SAR 375 (125 × 3). Over three years he saves SAR 36,000 in rent and keeps furniture and air conditioners that account for SAR 33,000 of the fit-out cost.
Common Mistakes
- ✗Not specifying what ‘unfurnished’ includes in the contract and handover checklist, such as the kitchen, air conditioners, water heaters and lighting.
- ✗Installing a kitchen or air conditioners without a written agreement on what happens to them at move-out or on recovering their cost.
- ✗Comparing unfurnished and furnished rents without counting the cost of furnishing, installation and the expected length of stay.
- ✗Failing to photograph the unit's condition at handover, so the tenant is charged at move-out for defects that predated them.
- ✗The tenant assuming all repairs fall on the owner, although the law requires the tenant to carry out customary maintenance unless otherwise agreed.
International Differences
In most markets the unfurnished lease is the default for long-term residential letting. In the UAE, unfurnished flats usually come with a fitted kitchen and central air conditioning. In some European countries, such as Germany, ‘unfurnished’ can sometimes mean without a kitchen. In Turkey, unfurnished lets are common for families. The key Saudi difference is how much the term's meaning varies between buildings, which makes specifying it in writing essential.
