Does a lease renew automatically on Ejar?

Clause Eight of the statutory provisions regulating the lessor–lessee relationship, issued by Royal Decree M/73 dated 2/4/1447H, says a lease renews automatically unless a non-renewal notice is given at least 60 days before it ends. Ejar explains that this covers residential and commercial leases longer than 3 months.

The provisions do not set the length of the renewed term. The unified residential lease template published on Ejar (November 2023 version) says, in its automatic-renewal option (clause 3/3), that the lease renews “for a similar period” once Ejar’s renewal requirements are met, and Ejar’s official account says the lease renews with the same data as the previous contract.

The rent does not change automatically. A landlord who wants a new rent files an adjustment request on Ejar at least 90 days before the end; if the tenant accepts, the new amount applies to the renewed lease, and if the tenant rejects it or does not answer before the 60-day window, automatic renewal is cancelled. In Riyadh only decreases can be requested.

The landlord pays for automatic renewal: the fee is taken from the landlord’s Ejar wallet when the lease enters its last 60 days. Al-Madina newspaper, quoting Ejar (May 2024), reported renewal fees of SAR 125 per year for residential leases, and SAR 200 for the first year and SAR 400 for each further year for commercial leases. If the landlord does not pay, the lease still renews and the fee is recorded as a debt on the landlord so the tenant is not affected.

The tenant may cancel it without conditions before the 60-day window starts, and so may a landlord outside Riyadh, subject to the notice period. Inside the Riyadh urban area a landlord can cancel only on the permitted grounds. Where the landlord wants the residential unit for personal use or for a first-degree relative, REGA has set the landlord’s notice at no less than 365 days; its decisions name no city, while Ejar presents the rule among the Riyadh conditions. Once the 60-day window has started the renewal goes ahead, unless both parties agree to end the lease by mutual consent. Ejar’s official replies describe the steps as follows: